1.

What are the implications of trade barriers to international marketers that may affect their
decisions?

It was said that international marketers deal with various people, may it be from
domestic or foreign markets, that usually lead to complexities. Therefore, international
marketing decisions are generally challenging and faces unfamiliar situations. Several
implications of trade barriers affect these decisions such as the firm’s product, pricing, and
distribution policies together with its foreign investment decisions. Trade barriers create big
impacts in the market for it could lower the prices of products. A good example of that is the
imposition of tariffs. The effect of tariff increases the price of imported product, therefore
foreign companies adjust their ways by modifying to lower the price of products or get a
much affordable tariff classifications. If the host country is exerting strong pressure for local
manufacture with existing sources, firms can establish a subsidiary in the foreign country so
that the tariff will turn into its own advantage. In addition to that, in order to minimize tariff
burden, professionals ship products completely knocked down (CKD) for assembly in the
local market since the tariff on unassembled products or ingredients is usually lower than
that on completely finished goods. Great uncertainty in government policies also leads to
negative decisions, for example reduced activity, no investment, or withdrawal from a
market.