Internal Barriers Limit Small Firms' Export Success in Free Trade
Small firms in a free trade environment can benefit from lower tariff barriers, but internal constraints like financial limitations and lack of planning can hinder their ability to take advantage of exporting opportunities. Small Ontario manufacturers were studied to see how these internal barriers affect their export strategies. The research found that internal factors play a significant role in shaping small firms' decisions to be proactive or reactive in exploiting the benefits of free trade agreements like NAFTA.