Lesson 2 Flashcards
Barriers for international business
Sometimes operate in trade blocks to stop all the countries from trading in their area is called protectionism
Reasons for protection
Job security
culture reasons
infant industries
Infant industry
A new business that’s developing in the country
they stop orders from trading to be is the infant business
Protecting employment
Restricting imports to protect national business which protects jobs
Difference in law and cultural reasons
Some countries have different laws some countries have different cultures and ethical benefits
What’s the tariff
Additional payments added to goods services to protect local business
Whats custom duties
Making goods from import more expensive by adding VAT and duties
What’s Quotas
Dictated how much good is allowed so people shop locally
Subsidies
Supports business to survive opposite of quotas
What’s trade restrictions
The restrictions of trade
Exchange rate volatility
Currency fluctuates which can be a risk or a positive
Financial requirements
Some countries did say how much profit you can take and make you reinvest in the country
Operating risks
Some countries have a threat of local operations this can be climate terrorism and laws
