In what ways and how effectively can governments facilitate the Essay

In what ways and how effectively can governments facilitate the development of major industries and contribute to national competitiveness - Essay Example These are preferential trade agreement that allows free market access to the member countries. Increase in integration agreements demonstrates motivation of the national governments (Dennis, 2002). This is a strategy to gain advantage of size in market a creating a large market for the major industries and protecting them from outside competition (Hitt Ireland & Hoskisson,  1999). Removal of trade barriers may lead the firms to realign their organizational structures to focus on a regional market. These integrations will continue to be building blocks in the global economy. The formation international integration like European Union liberalized public procurement (Stanley Hoffman, 2002). It also reduced the cost of uncertainty of different currencies. Tesco is the UK’s leading food retailer, benefits from European Union fewer regulation. Therefore, it has been able to penetrate in several countries within the region. United States also entered into a trade agreement with Canada and Mexico, NAFTA to eliminate trade restrictions (UN, 2001). NAFTA also encourages improvement of infrastructures within member states. Wal-Mart was able to enter Mexico market in 1990, and by 2004 it became the largest retail store. This has enabled the Mexico retail sector to grow after the trade liberalization under NAFTA. Moreover, NAFTA has necessitated foreign direct investments in Mexico (Paprzycki & Fukao,  2008). The Agreement in the Southeast Asia (ASEAN) was formed to promote multilateral economic cooperation within the Pacific region (Rondinelli, Heffron & Pacific Basin Research Center, 2007). The leaders committed themselves to achieving free and open trade in the region. BYD also has benefited from zero tariffs under the free trade liberalization between China and ASEAN. The market systems are the drivers on the national economic growth and ways through which private enterprise