Small businesses, mostly based in Western Europe and the Americas , are facing a great deal of hardship due to regional trade blocs. These trade blocs, like the one in the Far East, combines company interests and are many time created by a nation, along with their neighboring nations, in order to compete more effectively in the global market. Another reason for the formation of these blocs is to impose more substantial sanctions against nations with whom they are at war or whether they are simply competing with one another in the global market.
These “informal coalitions” have successful undermined a great many trade initiatives during the last few years. Although U.S. workers have seen a negative impact due to globalization, multinational companies which are based in North America have surprisingly prospered. Reversing this trend will require governmental and global scale cooperation and support.
Even though the landscape of small business positioning in the global market is bleak, the future can bring about a profound change. Governments must provide aid their resident small business by joining with peer nations to help them to form coalitions of their own in order to have a louder voice with venues such as the World Trade Organization. By doing this, small businesses can more effectively stand up to the new bullies on the block.
