Tambasacan, Reign Ashly T.

ACT 214

What are the cause of International trade barriers.

- International trade are beneficial to those countries who are lacking of products that they
cannot produce, it enables those countries to have access to that goods. For example, what
country has the largest deposits of oil, it is the Middle East, they’re so wealthy because of
their oil produce. However, middle east cannot manufacture, that is why they’re trading
from other countries for them to trade oil, and for the other countries to manufacture Middle
East’s product. As you can see here, international trade is really beneficial, however many
countries are against free trade because they’re thinking about the impact of trading in its
local goods. With this, I’m giving you five reasons or causes why international trade have
barriers. First, to protect domestic jobs, if people keep on buying from international goods
because its cheap, then the seller of local goods have no choice to put their price lower,
which means that they aren’t growing economically. Second, to improve trade deficit, the
purpose of trade barriers is to impose a tax its import making it more expensive, that is why
the demand for import decreases, third, to protect infant industries, if a country keeps on
having the free trade, the newly developing industries will shutdown because they don’t
have time grow and become competitive. Fourth, protection from dumping and the last one
is to earn more revenue, due to imposed tax or tariffs, government earned gain extra
revenue.
How does culture affect international trade?
- International trade deals made internationally span not only political boundaries but also
cultural boundaries. Culture has a significant impact on how individuals think, interact, and
act. Additionally, it influences the nature of their transactions and how they are negotiated.
For example, the executives are from Islam and the other one is from America, do they
have the same culture? Of course not, with that it creates a barrier that cause delay through
process negotiation. Cultural barriers such as language, beliefs, tradition, and behavior
greatly affect the international trade. It is because different country has different and
specific need that the other one doesn’t. For instance, your product trade revolves around
selling meat, do you think you can sell it into the country who doesn’t or prevented from
eating meat? The answer is no, that is why culture really affects international trade.