David Paez
Barriers of operating internationally for
contrasting businesses
Barriers to international Business
● The reasons for protectionism in international markets, e.g. to protect infant
industries, to protect employment/local business.
● Methods for protecting markets, e.g. tariffs, customs duties, currency
restrictions, quotas, subsidies, legal restrictions.
● Barriers to trade, e.g. trade restrictions, exchange rate volatility, legal and
regulatory systems, financial requirements, operating risks, economic
sanctions.
Businesses that like Amazon and Apple face several obstacles when it comes to
entering new markets. The most common barriers to effective business are cultural,
social, and political barriers, and tariffs and trade restrictions.
The first one to effective business is the cultural and social barriers. A country’s
culture and social forces can restrict international business activities. Culture
consists of a country's general concepts and values and tangible items such as food,
clothing, and building. Social forces include family, education, religion and customs.
Selling products from one country to another is sometimes difficult when the cultures
of the two countries differ significantly. For example, when McDonald's opened its
first restaurant in Rome, it was met with protest. The people of Rome objected to the
smell of hamburgers frying. McDonald's overcame this objection by changing the
exhaust system of the restaurant.
For this reason, Apple, and every international business has to adapt to the country
they are entering. For example, Apple does not use the same type of advertising in
every country as this process is manipulated according to the country’s culture and
different factors.
The second barrier is the social forces that can create obstacles to international
trade. In some countries, purchasing items as basic as food and clothing can be
influenced by religion. In many nations, individuals do not have the same choices in
food, clothing, and health care.
The third one is political barriers. The political climate of a country can have a major
impact on international business. Nations experiencing intense political unrest may
Barriers of operating internationally for
contrasting businesses
Barriers to international Business
● The reasons for protectionism in international markets, e.g. to protect infant
industries, to protect employment/local business.
● Methods for protecting markets, e.g. tariffs, customs duties, currency
restrictions, quotas, subsidies, legal restrictions.
● Barriers to trade, e.g. trade restrictions, exchange rate volatility, legal and
regulatory systems, financial requirements, operating risks, economic
sanctions.
Businesses that like Amazon and Apple face several obstacles when it comes to
entering new markets. The most common barriers to effective business are cultural,
social, and political barriers, and tariffs and trade restrictions.
The first one to effective business is the cultural and social barriers. A country’s
culture and social forces can restrict international business activities. Culture
consists of a country's general concepts and values and tangible items such as food,
clothing, and building. Social forces include family, education, religion and customs.
Selling products from one country to another is sometimes difficult when the cultures
of the two countries differ significantly. For example, when McDonald's opened its
first restaurant in Rome, it was met with protest. The people of Rome objected to the
smell of hamburgers frying. McDonald's overcame this objection by changing the
exhaust system of the restaurant.
For this reason, Apple, and every international business has to adapt to the country
they are entering. For example, Apple does not use the same type of advertising in
every country as this process is manipulated according to the country’s culture and
different factors.
The second barrier is the social forces that can create obstacles to international
trade. In some countries, purchasing items as basic as food and clothing can be
influenced by religion. In many nations, individuals do not have the same choices in
food, clothing, and health care.
The third one is political barriers. The political climate of a country can have a major
impact on international business. Nations experiencing intense political unrest may
