Question

Write any 4 problems related to international trade?​

Answer 1

Answer:

1. Distance

2. Different languages

3. Difficulty in transportation and communication

4. Risk in transit

Explanation:

Answer 2

Answer:

hope it helps you

Explanation:

1. Distance:

Due to long distance between different countries, it is difficult to establish quick and close trade contacts between traders. Buyers and sellers rarely meet one another and personal contact is rarely possible.

There is a great time lag between placement of order and receipt of goods from foreign countries. Distance creates higher costs of transportation and greater risks.

2. Different languages:

Different languages are spoken and written in different countries. Price lists and catalogs are prepared in foreign languages. Advertisements and correspondence also are to be done in foreign languages.

A trader wishing to buy or sell goods abroad must know the foreign language or employ somebody who knows that language.

3. Difficulty in transportation and communication:

Dispatch and receipt of goods takes a longer time and involves considerable expenses. During the war and natural calamities, transpor­tation of goods becomes even more difficult. Similarly, the costs of sending or receiving informa­tion are very high.

4. Risk in transit:

Foreign trade involves much greater risk than home trade. Goods have to be transported over long distances and they are exposed to perils of the sea. Many of these risks can be covered through marine insurance but increases the cost of goods.