Firms desiring to enter international business face several obstacles; some are much more severe than others. The most common barriers to effective business are cultural, social, and political barriers, and tariffs and trade restrictions.
The first one to effective business is the cultural and social barriers. A nation’s culture and social forces can restrict international business activities. Culture consists of a country’s general concepts and values and tangible items such as food, clothing, and building. Social forces include family, education, religion and customs. Selling products from one country to another is sometimes difficult when the cultures of the two countries differ significantly. For example, when McDonald’s opened its first restaurant in Rome, it was met with protest. The people of Rome objected to the smell of hamburgers frying. McDonald’s overcame this objection by changing the exhaust system of the restaurant.
The second barrier is the social forces that can create … Read More
