-Different languages 

-Differences in 
-Different   consumer incomes 
-Lack of colonial ties 
 ethnicities/lack of 
 Administrative  -Differences
Economic in 
Cultural -Lack of shared   Geographic 
 connective
Differencesethnic Differences 
or  -Physical distance  availability
 Differences  Differencesof: 
 regional trading bloc 
 social networks  -Lack of land border 
.Natural resources 
 Bilateral  -Lack of common 
-Different religions  -Differences in  .Financial resources 
 Measures   currency 
-Differences in   climates (and disease 
.Human resources 
-Different legal 
-Nonmarket/closed 
 national work systems   environments) 
- .Intermediate inputs 
 system  (home bias 
 economy
-Different values,  Landlocke .Infrastructure 
-Political
 versus hostility 
foreign bias) dness
 norms and  .Information or 
 dispositions  -Nonmembership in   Knowledge size 
-Economic
 international orgs.  -
-Traditionalism  Geographi -Low per capita income 
-Weak legal 
 Unilateral  -Insularity  c size -Low level of 
 institutions/ 
 Measures  -Spiritualism   monetization 
 corruption  -
-Inscrutability  -Limited infrastructure, 
-Lack of govt. checks  Geographi  other specialized factors 
 and balances  c
-Societal conflict 
 - Political/  remotenes
 expropriation risk  s