Problems in International Business 

There are many Problems in International Business. The restraining forces slow down the progress of companies that take up International Business.

The restraining forces are:

(a) First Main Problem in International Business is Culture: The culture of the nation and the companies should have international vision. The long term perspective of companies should be to move wherever market opportunities are good. The inward looking culture makes companies to remain local.

(b) Another main problem in International Business is Market Competition in Host Country: If best global companies enter the markets, the competition goes intense and accordingly inefficient companies have to close their shops.

(c) Another main problem in International Business is Costs: The competition calls for marketing quality products at competitive prices. If prices are high the market rejects the products.

(d) One of the main problem in International Business is National Controls: The nation build barriers for outside country manufacturers by increasing trade barriers. Trade barriers will be direct by way of high customs duties. Indirect barriers will be licensing procedures, quota system, inspection. certification and tedious paper work.

(e) Another main problem in International Business is Nationalization: Due to Ideological differences some nations do not trade with nations of their dislike.