BARRIERS OR PROBLEMS OF INTERNATIONAL TRADE
- Language Problems: Different languages are spoken by different countries of the world. Communication between, business men from various countries with different linguistic background may be difficult.
- Problems of Distance: It may take days or weeks before one moves from one country to another because of the long distances involved. This may delay quick exchange of goods and services, e.g. Nigeria and Japan.
- Numerous Documents: The documents used in international trade are too many. This makes the processing of foreign trade too long and sometimes cumbersome e.g. bills of exchange, ship manifest and certificate of origin.
- Difference in Currency: Every country has its own currency which is different from the currency of other countries. In foreign trade, the currency must be converted before meaningful transactions can take place.
- Tariff: A country can impose import duties (tariff) on imported goods and this will make the goods to be more expensive.
- Trade Imbalance: International trade often leads to trade imbalance among nations with the effect that viable countries may not transact business with the weaker ones.
- Government Policy: Foreign trade can be hindered by the political ideologies of different countries. As country can deliberately decide not to trade with another country because of its political differences, e.g. the USA and Libya in 1988.
- Weight and measures: There is no international uniformity in the system of weighing and measuring of goods. The system is not standardized, hence it has to be converted and this hinders trade.
- Artificial Barriers: Foreign trade can be hindered through the imposition of outright ban on products, quota system or imposition of licenses on goods.
- Transport/Communication: Businessmen from different countries, especially African countries, find it difficult to contact their partners in other countries because of poor communication and transport facilities. This hinders foreign trade greatly.
- Religion/Culture: Religious beliefs and culture differ from one country to another and these can constitute a hindrance to International trade.
153. FUNGAL DISEASES