International Business Management Essay Example | Topics and Well Written Essays - 2000 words

International Business Management - Essay Example Governments, therefore, have to use more sophisticated means of extending assistance to the domestic industry and such assistance is required to produce results in the form of a viable industry because it is unfair to the national taxpayer or the consumer to continue to suffer if domestic industry cannot compete at least in the domestic market, if not the global markets. Although there are provisions in the WTO Safeguards Agreements which, because of their broad language, may be used by a national government to impose tariffs if the domestic industry is likely to suffer serious injury, such loopholes are likely to become more difficult to use in the future because of new consensus that is already emerging to close them. Hence, national governments have to assist domestic industry by providing direct and indirect subsidies through management assistance, export assistance, skills development, assistance with research & development as well as information gathering and dissemination. Gov ernments have to do much more then merely enacting legislation if a nation is to continue to have a viable domestic industry. This brief essay takes a look at what a national government can do in order to assist domestic industry in the era of trade liberalisation. In an era of international trade liberalisation, there is intense market competition for goods and services because manufacturers and service providers from all over the world try to sell their manufactured products and services in a national market. As a result of the global movement towards trade liberalisation, nations are required to progressively reduce their tariffs to permit market access to producers and suppliers from all over the world. Such access means that the domestic industry is required to compete with the products and services of international manufacturers and service providers on quality, price