International Business Trade Barriers

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Currency Fluctations

Currency fluctuations are the natural outcome of the foating exchange rate system which is the norm for most economies. The echange rate for one currency versus of the other is influenced by numerous factors. Currency flucations are often caused by supply and demand in the foreign exchange market.

Subsidies

An amount of money given to a domestic industry or business by the government to help the price of a product low and competitive. Ex: Farm Subsidy

Landed Cost

The final price of an imported product, after factoring the vendor, transportation, and other expenses. The Land Cost can be used to determine if the imported product was cheaper or more expensive compared to a domestic product.Ex: Import that is transported over a distance.

Tarifs

A tariff is a tax imposed by governments on goods and services from foreign countries. Governments use tariffs to raise the amount of revenue or in order to protect domestic industries from foreign competitors. The money that is collected under a tariff is known as a duty or customs duty. Ex: 25% on Steel Imports

Exercise Tax

A specific tax on a particular product that is manufactured, sold or consumed in a country.Ex: Execise Tax on Petroleum.

Standards

A restriction/regulation put on the quality of imported goods to prevent foreign competitors from entering a Domestic Market. Ex: High standards on imported automobiles

Embargoes

Imposed by the government when they decide to restrict commerce or exchange with a certain country of certain products and services.An embargo can be put into action as a result of unfavorable political or economic circumstances between nations.Ex: Food and Agricultural imports between U.S.A and Cuba.