Regional Trade Blocs

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Date: Friday, 12 May 2006
From: Emanuel Cardona
Subject: un3db_cardona

Regional Trade Blocs
BUS 230 International Business
Emanuel Cardona

May 12, 2006

Regional Trade Blocs
Small companies typically have difficulty competing against large multinationals when their governments take part in regional trade blocs, however, government can help their small companies compete in several ways. One approach is for the government to provide subsidies (directly or indirectly via the tax code). Governments giving resources, for example, land, to business or governments make purchases above market prices. Reward companies through the tax code, lease government resources, like land, below market rates are one of many ways. Governments may consider to purchase from them (small companies) since governments tend to be relatively large consumers. Furthermore, provide assistance to domestic producers in closing trade deals (Wild et al, 2006). Other examples may include labeling regulations like in the EU. Labeling regulations in the EU are based on what can be labeled, for example, Champaign (Wild et al, 2006). Product regulation--specify product requirements that foreign business will have trouble complying with Another is government guaranteeing small business loans (,,; and tariffs and trade quotas. Put a tax on imports from other countries and limit the amount of imports from other countries (Mofatt, 2006). References

Mofatt, M. (2006). Why are tariffs preferable to quotas? Retrieved on May 12, 2006, from website: Wild, J., Wild, K. L., & Han, J. C. Y. (2006). International Business: The Challenges of Globalization (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Emanuel Cardona, Student
American InterContinental University Online
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