Write a short note on the problem faced in cross national trade.
Answers
Cross national trade is generally international trade, i.e related to the importing, exporting of goods and services across borders.
There are some problems faced by countries when they indulge in cross national trade. Those problems include, taxation problems(VAT, duty) , currency issues, political policies, domestic and international policies, other things such as, quotas, limitations, embargo's. There might be issues such as a balance of trade or service deficit when one exports too much. This leads to a disadvantage for domestic industries in a country.
Cross National Trade is a trade which consists of more than one countries.
Among the real issues looked by Indian exports are poor image; high expenses and lack of quality.
Poor Quality Image:
"Made in India" despises great notoriety in the business sectors abroad. Or maybe it is thought to be an indication of low quality.
High Costs:
The port charges in India are 3-4 times higher than those in Hong Kong, Singapore, which results in the higher expenses.
Lack of reliability:
Other than quality, Indian exporters are viewed as untrustworthy on certain different factors, for example, backpedaling on an agreement and declining to satisfy it on its unique terms, failure to give incite after sales benefits when compared with different countries.
Hence Indian government faces challenges while making the export smoother in India.