Question

Business Scenario from Textbook BUSN11:

In the nation where Klaus lives, there are four very large manufacturers of furniture. Klaus and some very wealthy friends want to establish Number Five in the furniture manufacturing industry. Their strategy is quite simple and straight forward. They will quickly establish their new firm in the market and will sell all their products at lower prices than currently exist in the market. "We can have our company up and running within six months," Klaus confidently tells one of the prospective investors. An advisor says to Klaus: "These friends who want to back you financially, are they millionaires?" Klaus answers, "Not necessarily. They're just sharp business people who want to get a new firm started in an industry that is looking for some new ideas, some new blood." Soon the word has spread throughout the furniture industry that Klaus and friends are about to make a move. Then, Klaus gets a phone call: "Klaus, this is Ted Willkur of Willkur Furniture, and I'd like for you and me and some of my furniture colleagues from the other firms to have lunch together out at the country club. Interested?

Question: After considering some of the barriers of international trade, choose one and give an example that has existed or exists in the "real world". Explain your answer. There are many examples that can be found on the news, on the internet, etc. Do not use any of the examples given in your textbook.

Answer 1

Barrier to international trade language barrier. People with different cultures find it hard to communicate not only due to language barrier but also because of cultural barrier

For example county A demonstrate lower power distance compared to country B. This means that residents of country A operating in Country B must understand that line of authority are more rigid in Country B