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Recently I was on business trip and heard a Procurement Manager saying as this Project is European country based European Suppliers has advantage to American or Asian suppliers
To a certain extent a logical idea
There may no harm in Positive nepotisim and in case when you make sure that you will make best use of your powers and influences to get the job done in an excellent or outstanding way .
yes i agree
I think it depends on the what the priorities are. Some countries support free trade and keen competition and have the agreements and laws (e.g. competition laws) in place to back that up. Other countries are focused on development, and, even if export-oriented, don't necessarily conclude a lot of trade agreements. So they are free to give an advantage to certain suppliers. They (and the end user) may pay more, but believe it's worth it to promote capacity in some area. But some companies and authorities may engage in this behaviour even when their laws do not actually permit it.