Question

Discuss how globalization has an effect on the factors of projection. What are some of the barriers to international trade?

Answer 1

The most common barrier to international trade are,

1.Natural barriers: Distance and language barriers are two most important hinderances to trade. Distances increases the cost to tarde and choice of transporatation medium whereas, good communication is neccesary to execute the trade efficiently and should also consider cultural differneces.

2.Tariff Barriers: Tariff rates are the rates imposed on imported goods in a country. It can be percentage of the value of good imported or a charge per unit. Higher the tariff more costly the imported good becomes reulting in less demand of the good and vice versa.

3. Non tariff Barriers: Other ways used by the government to impact imports are by other medium such as placing import quotas, restrictions on quantity imported, regulations ,exchange control, to the extend of placing a ban on goods(embargo) etc.