another questions from my bisness class in highschool :)
thanks
2006-10-25 04:27:35 · 3 answers · asked by 15 1 in Business & Finance ➔ Other - Business & Finance
The existence of different currencies can act as a huge barrier to trade because people in one country may be unwilling to invest in another if the value of the investment is subject to the risk of currency fluctuations.
Language is the largest trade barrier since you can do but so much trading with someone if you can't communicate with him.
Historically, geography has been a large trade barrier and it still is. Generally the farther the distance or the greater the physical barriers between two parties, the more costly it is for them to trade. That's why Columbus was trying to find a short cut to the East and why the Suez and Panama canals were built - to reduce the distance between trading partners and thus, reduce the cost of transporting goods for trade.
2006-10-25 04:57:30 · answer #1 · answered by Rob B 4 · 1⤊ 0⤋
If you wanted to import sugar into Brazil. They already produce the highest amount of suger in the world so importing sugar there would have to overcome a barrier of a large low cost supply. It would be the same for importing oil to Saudi Arabia.
2006-10-25 16:01:40 · answer #2 · answered by Mike & Marcia T 1 · 0⤊ 0⤋
Collusion to create price fixing occasionally works as a trade barrier.
There can also be cultural barriers, like "Buy USA".
2006-10-25 04:35:15 · answer #3 · answered by tax_black_belt 2 · 0⤊ 0⤋