Companies that want to enter international business face several obstacles; some are more than others. The most common obstacles to effective business are cultural, social and political barriers, as well as tariff and trade restrictions.
The first of effective business is cultural and social barriers. The cultural and social power of a country can limit international business activities. Culture includes a country's general concepts and values as well as tangible items such as food, clothing and architecture. Social forces include family, education, religion and customs. When the cultures of the two countries are very different, it is sometimes difficult to sell products from one country to another. For example, when McDonald's opened its first restaurant in Rome, it was protested. The Romans were tasted by hamburgers. McDonald's overcame this objection by changing the restaurant's exhaust system.
The second obstacle is the social forces that may create obstacles to international trade. In some countries, the purchase of basic items such as food and clothing may be affected by religion. In many countries, individuals have no choice in food, clothing and health care.
The third is political obstacles. The political climate of a country can have a major impact on international business. Countries experiencing internal political turmoil may change their attitudes towards foreign companies at any time; this instability creates an unfavourable atmosphere for international trade.
The last one is tariffs and trade restrictions. Tariffs and trade restrictions are also obstacles to international business. A country can restrict trade through import tariffs, quotations and embargoes, and export controls.
Orignal From: Barriers to international business
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