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Barriers to International Business
Firms desiring to enter international business face several obstacles, some much more severe than others. The most common barriers to international business are: cultural, social, and political barriers, and tariffs and trade restrictions.
A nation’s culture and social forces can restrict international business activities. Culture consists of a country’s general ideas and values and tangible items such as food, clothing, and buildings. Social forces include family, education, religion, and customs.
(9) Some countries also have different values about spending than do Americans. The Japanese have long been a nation that believes in paying cash for the products they buy, although the use of credit cards has soared in Japan over the last few years. The Japanese still save nearly 20 percent of individual income, compared to about 4 percent saved by people in the United States.
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