Question

What are the barriers to the internationalization of a service firm?

Answer 1

Thank you for this question. Please find the answer below: 

The barriers to the internationalization of a service firm are the following: 

(i) Transport of the labour. 

(ii) Increase in the cost of production. 

(iii) International service market is competitive. 

(iv) New support services are required. 

Answer 2

The barriers to the internationalization of a service firm are in the form of the following:

• Technology issue

• Lack of resources,  

• Less knowledge about exporting

• Cultural differences

• Government policies.

Explanation:

• The obstacles that are encountered during the internalization of a firm are having little experience and less knowledge.  

• The cultural differences add to the obstacles in the internationalization of the firm.  

• Lack of resources can also be a major constraint for firms while entering the global arena.  

• The policies of the government bring in restrictions and obstacles for the internationalization of the service firms.

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