5 Major Barriers To Global Market Entry
1. Political And Social Risk
Political and social risks may restrict global market entry. Political instability, government policies, nationalism, agitation etc. are the major barriers for globalization.
2. National Barriers And Control
Non-tariff barriers such as bureaucracy, subsidies, anti dumping provisions etc. and tariff barriers such as import tariff, export tariff etc. serve as barriers to global market entry. Different control mechanisms like quota, quality control, exchange control also restrict the global market entry.
3. Entry Barriers
Balance of payment problem, reservation policy for nationals also controls the global market entry.
4. High Cost
High cost of production reduces competitive advantage and restrict global market entry. So, costs for factors of production of the host country should be properly studied before going global.
5. Cultural Barriers
Cultural factors like customs, value, attitude, religion etc. are also considered as barriers while going global.
So, a company should properly analyze and consider these barriers before entering the global market.
