OBSTACLES TO GLOBALIZATION Government Rules and Regulations This can hold back the flow of goods and services

and the movement Of capital (money) and people from state to state. Government Tariffs and Subsidies Mostly tariffs are on imports in order to protect the local firms from foreign competitors Subsidies can be seen as the financial grants or tax concessions; these are particularly common in agriculture. System of capital control These are the inflows or outflows of foreign direct as well as indirect investment. Occasionally some countries impose capital controls in times of economic crises. Technology In order to protect the domestic markets set boundaries from technical regulation. For a service sector such as railway transport, countries have their diverse signaling and electrification system which create problem to foreign company to combat. Cultural Distance This is the differences in practice, attitude, language, belief, race, social and taste. It is important in the work place, with business partners and also mostly with the ultimate customers Geographical Distance If there is more distance among countries, the lesser would be the trade between them. An organization needs to react to the barrier posed by geography in a variety of ways. \
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