A proliferation of such measures could prove deleterious, setting in motion a cycle of trade reprisals. It is important for the new US Administration to take a firm stand against demands for trade restrictions, and crucial that appeals for free trade should not be contradicted by action within the European Union itself.
Meanwhile, U.S. companies that had earlier found themselves in strong foreign competition, especially against Japanese firms, had already begun the process of adjusting to globalization during the mid- to late 1980s. So, by the beginning of the 1990s, they were better placed than most to respond to the intensifying forces of technological change and global competition.