Small companies typically have difficulty competing against large multinationals when their governments take part in regional trade blocs. What could governments do to help their small companies compete after the formation of such blocs?

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1 answer

Why do small companies start to have difficulty in regional trading blocs? If you analyze that, then you know what governments can do, if they choose.

Now being the Devil's advocate, why would governments form efficient production arragements then give help to the inefficient? It is an odd situation.