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Barriers to International

BusinessMs. Gill

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∗Import: goods or services

coming into a country for sale

∗

Export: product or serviceproduced in one country andsold in another

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Tarifs

Tarifs are form of tax on certain types ofimports (goods coming in)

Usually based on percent of the product price

Imported goods have taris  sold at higher

prices

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Barriers to International Business 

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∗ !rice of product is based on cost of ma"ing

the product

∗ Landed cost: actual #$#%& cost of animported item

∗ 'osts of ma"ing a product can include:

∗ torage shipping advertising taxes

&anded 'osts

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'anada*s #op #rading

!artners

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 #op Imports and Exports

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∗ % +,-- 'anadian is never eual to exactly

+,-- U∗ /luctuates due to economy changes

∗ 0o1 1ould this aect businesses 1ho areinternational2

'urrency /luctuations

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∗ Balance o Trade: relationship bet1een a

country*s total imports and total exports∗ Trade Decit: country pays more for

imports than it earns from exports

∗ Trade Surplus: country earns more from

exports than it pays for imports

3alance of #rade

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∗ 4educe trade barriers (such as taris5

customs)∗ #1o advantages:

∗ ,. country can sell products at lo1er pricesince there are no trade barriers

∗ 6. consumers have access to ne1 products andcompetitive prices

 #rade %greements

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∗ World Trade Organization: deals 1ith

governs 1orld trade∗ North Aerican !ree Trade Agreeent

"NA!TA#: agreeent $et%een &anada'(S and )e*ico to create a ree+trade+

zone,∗ No tarris

7#$

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∗ 7orld*s most po1erful democracies that

discuss economic and political issues facingtheir o1n countries

G6-

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