are the trade barriers and how will these affect your ability to price yourself

Are the trade barriers and how will these affect your

This preview shows page 40 - 42 out of 46 pages.

are the trade barriers and how will these affect your ability to price yourself at a competitive rate in your potential market? How much will these trade barriers affect profits and does this make it a worthwhile venture compared to other current and potential markets?
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P a g e | even political elections that may replace a ruling political party with another political party, can also affect international market.In order to balance the political environment, we should consider the points discussed below.Ideology − A country undergoes change when the ideology of the ruling party changes. The past years saw changes formulated in a nation due to change in the ideology of the ruling power. For example, many African nations are abandoning their centrist leanings in favour of market led economies like Zimbabwe and Tanzania.Nationalism − It is primarily a peculiarity of the developing nations. For example,, Yugoslavia does not counter all features of nationalism as they are deprived of holding foreign assets.Stability − The environment of a country may change due to violence and cultural divisions based on language or other factors causing unstable situations. For example, the violence of Somalia and Yugoslavia increase the exposure and decrease the confidence of doing business in these countries.International relations − The relationship between countries have improved over the last twenty years. This is mainly due to the development of GATT, NATO and the EU as they have gone a long way to minimize the component of "foreignness".International Marketing - Import QuotasQuota is the limit drawn on how much of a particular product can be imported by a country. Whereas, a tariff refers to the tax imposed on the imports coming into a country. Tariffs and quotas can be used for many reasons.Given below are some reasons highlighting the importance of tariffs and quotas −Protecting Domestic Employment − The probability of increased competition from imported goods may threaten the local companies. As a result, these local companies may remove workers or shift production of goods offshore. This may eventually lead to unemployment among the masses.Protecting Consumers − A government may impose a tax on goods that couldbe harmful for the people. For example, India imposed a tariff on cigarettes as it is injurious to health.Infant Industries − The Import Substitution Industrialization (ISI) is an 41
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