Brila, Dannie Ann C.

20BSE1M

1. The factors affect international trade are cultural differences and language barrier. Language
barrier cause confusion, and at worst, cause offence. Time differences and expectations of
communication can also produce barriers to international trade productivity. Building brand
abroad relies on communicating brand messaging consistently and effectively in the languages
within scope for trading efforts. Language barriers can effect international trade hugely. Cultural
differences impacts everything from how employees are managed to the pace at which business
is conducted, how negotiations are handled, and how risk management is enforced. Thus, an in-
depth understanding of local business practices is crucial to international business success.
2. Technological Innovation is a factor leading to growth of international trade. The global
business planning became more successful, with the integration of technology. The
advancement of technology is seen with the effect of globalization. It improved global
communication and transportation. They are great influencers or factors affecting international
Business. The businesses are integrating due to technology advancement.
3. Unique products and services should considered for success of international trade. Which the
client would buy from a foreign supplier, if the products and services won’t offer a unique
benefit like for example a lower price, a better quality or a higher performance. No one will buy
so better to be unique and can give customer satisfaction.
4. Tariffs affect international trade by raising the price of imported goods relative to domestic
goods. Another common barrier to trade is a government subsidy to a particular domestic
industry. Subsidies make those goods cheaper to produce than in foreign markets. This results in
a lower domestic price. Both tariffs and subsidies raise the price of foreign goods relative to
domestic goods, which reduces imports.
5. Some of the problem of tariffs are when a country imposes a tariff, foreign exporters have
greater difficulty in selling their products. As their exports decline, they may cut prices in order
to keep their sales from falling drastically.