Chapter 8, Problem 4TAI2

Summary Introduction

To Determine:

The help national governments can provide to small companies so that they can compete in large trading blocs like the FTAA.

Introduction:

The globalization process has led to the growth of many regional trading blocs like APEC, FTAA, TAFTA, etc. which basically functions to promote international commerce and establish trading rules by reducing government impediments to free trade across borders.

The so-called Globalization process in recent years has seen the creation and growth of many regional trading blocs and forums, including APEC (Asian Pacific Economic Cooperation forum), ASEAN (Association of Southeast Asian Nations), the EU (European Union), FTAA (Free Trade Area of the Americas), NAFTA (North American Free trade Agreement) and TAFTA (Transatlantic Free Trade Agreement). A primary function of most of these blocs is to promote international commerce and trade, principally by reducing the impediments to free trade across international borders. Barriers to free trade include such governmental devices as import tariffs and quotas, quarantine restrictions on imported agricultural produce, and government subsidization of local produce over imported goods.