Foreign trade techniques Task 24-11-2022

1. Why is it important for European SMEs to go global?

2. Imagine that a Spanish firm aims to export to Germany. Justify whether the following
European Commission policy actions are applicable:
i) Financial aid up to 1,000 €
ii) Information sources (contacts, consultancy,…)

1. It is important for SME firms to go global because an estimated 90% of global growth
will originate outside the EU in the coming years. Developing and emerging markets
expected to account for 60% of world GDP by 2030. In order for the EU to remain a
strong economy it is important for SME firms to get involved because they make up a
large proportion of the EU. Furthermore, given increased market integration, SMEs can
play an important role in global value chains. Another reason for SME firms to
internationalize is the fact that according to studies on the level of internationalisation of
European SMEs, international SMEs create more jobs and are more innovative than
national SMEs.
2. (i) is not applicable as both firms are EU firms and financial trade promotion within EU
countries is not allowed according to EU competition policies. Because then the Spanish
companies will have an advantage.
(ii) is allowed to promote and inform SMEs with information. Everything except
financial aid is not allowed. Advisory (the service) is also allowed