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Ethical, Legal, and Political Barriers:Wide-ranging ethical, legal and political barriers include differing laws (and enforcement), tariffs, exchange controls, quotas, embargoes, political instability, and war.Social and Cultural Barriers:Ambiguous cultural and social barriers involve differences in spoken and body language, time, holidays and other observances, and customs.Infrastructure:Are the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems.Exchange rate:Is the ratio at which one nation's currency can be exchanged for another nation's currency.Import tariff:Is a tax levied by a nation on goods imported into the country.Exchange controls:Are regulations that restrict the amount of currency that can be bought or sold.
Matrix Three - Chapter ThreeThe Dynamics of Business and Economics (Ferrell et. al 2016)Name:Quota:Is a restriction on the number of units of a particular product that can be imported into a country.Embargo:Is a prohibition on trade in a particular product.Dumping: Is the act of a country or business selling products at less than what it costs to produce them.Cartel:Is a group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets.Learning Objective 3: Specify some of the agreements, alliances, and organizations that may encourage trade across international boundaries.Trade Agreements, Alliances, and Organizations&International Monetary FundGeneral Agreement on Tariffs and trade (GATT):Is a trade agreement, originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could bediscussed and resolved.