What are the obstacles of international trade?
Some international obstacles include differences in language, culture, laws and regulations. Trading companies may also encounter misunderstandings on terms of contracts, which leads to problems with payment for goods, transport or insurance. Laws on land, employment, intellectual property and public health differ from country to country and can cause problems for international enterprises. Movements of exchange rates of currency and increasing inflation or interest rates in a foreign country are traps for undesirable traders. The tariffs and quotas for imported goods in combination with subsidies for the domestic industry are loading cubes against foreign companies in many countries. The misunderstanding in international contracts has been reduced by the development of standardized contractual terms, while governments often provide support, such as guarantees to companies looking for export financing. Companies may have to look for advice to ensure monetary movements and financial risks of trading in another country, including inflation and fluctuating interest SAZeb.
When establishing a branch or subsidiary of another country in another country, companies must face licensing laws, law of the company, investment regulations and tax rules. In general, they need local business counseling to deal with these problems, but there may also be opportunities such as free zones or special economic zones in the second country. Health and safety regulations can cause problems for companies working in certain industries, including food and children's industries. Some businesses may have to adjust their products to take into account the local custom and tastes.
The most visible barriers of international trade are tariffs and quotas. Industrial countries often set high tariffs on imported agricultural goods and can combine it with subsidies for their domestic agricultural manufacturers. They can also store quotas that reduce the amount of certain goods producedEach year. Development countries can build tariff barriers against imports of goods in certain industries to protect their own producers of pioneers. Despite the general agreement that protectionism damages international trade and national income, countries generally care about their own national interests in considering business issues.
International organizations such as the World Trade Organization (WTO) organize interviews and negotiations on international trade obstacles. They often focus on sensitive problems such as tariffs and subsidies for agricultural products, tariffs and quotas stored on produced goods and obstacles in the provisian services at the international level. Another sensitive problem in international trade is the protection of intellectual property, because international companies often complain that the protection of the patent in some countries is not enough.