Barriers to International Trade in the Current Economic Climate Essay

Barriers to International Trade in the Current Economic Climate - Essay Example The administrative cost of trade are not negligible in costs and are thus making businesses across countries appears expensive and leads to minimized profits (Farole & Akinci, 2011). A good example of an administrative trade barrier can be seen in the trade between the United States of America and Spain. Administrative costs of doing business between these two countries can be captured in where the cost of trade documentation and customs procedures is so numerous and inhibits trade. The administrative cost barrier can be solved by proper negotiations between the business community with the government of various states so that they can find a way of minimizing documentation and customs procedures (Daniels, Radebauch & Sullivan, 2011). Trading countries should also find a way of harmonizing their administrative means so that they avoid being prohibitive to trade between countries. Cultural differences Different places on earth are associated with different cultures that dictate the kin d of consumer lifestyle and behaviours with respect to different goods and services. The biggest the cultural difference, the increased economic distance between traders of that comes from different parts of the world. Cultures also bring in different norms and values that implicate the ease in which businesses are done between cultural diverse groups of people. Cultural familiarity increases decreases with an increase in cultural familiarity and this is also proportional to the ease with which trade can be conducted between those countries (Adekola & Sergi, 2007). An Indian doing business in Germany should also be similarly be ready to adapt to the local cultural... This paper offers a comprehensive theoretic analysis of the impacts of numerous economic factors, that hamper growth of the international trade. There have been many liberalization efforts that have been put in place to solve the barriers that affect international trade but they are still available. This has resulted in a scenario whereby trade between countries is smaller than trade within the country. The speed at which trade can take place between countries is a very important component of trade especially when it involves more than one country. Time affect the trade of perishable commodities like agricultural goods. The speed at which trade can take place between countries is a very important component of trade especially when it involves more than one country. Time affect the trade of perishable commodities like agricultural goods. Different places on earth are associated with different cultures that dictate the kind of consumer lifestyle and behaviours with respect to different goods and services. The biggest the cultural difference, the increased economic distance between traders of that comes from different parts of the world. Transporting goods between one place to another acts as a natural barrier due to high prohibitive costs needed to move some kind of goods. Tariffs are tax imposed by local government on goods and services that operate within their country to generate incomes for their country government. Safety regulations are sometimes a big barrier to the way in which businesses are done in most countries