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High context and low context cultures, free trade

1. It is often argued that free trade benefits all nations that engage in such activity and, in the process, maximizes world welfare. If this premise is true, why do nations restrict trade?

2. Why are people from high-context cultures such as China and Japan likely to be misunderstood by low-context Westerners?

3. Does free trade necessarily imply that developing countries should forever specialize in primary commodities?. What types of business opportunities could you identify through NAFTA, APEC, MERCOSUR, ASEAN, COMESA, and EU? What are some adverse effects of regional integration on global business?

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1. It is often argued that free trade benefits all nations that engage in such activity and, in the process, maximizes world welfare. If this premise is true, why do nations restrict trade?

Nations often restrict trade and impose import restrictions or tariffs/duties in order to protect their domestic industries which are producing the same goods and services as the companies which are trying to enter that particular nation. Global corporations often possess certain advantages in terms of costs, pricing and quality and in order to sustain the domestic industries which find themselves in a difficult situation with respect to sustaining competitio, look forward to their governments and policy makers for protection. Therefore, such trade restrictions are imposed to make the markets unattractive for these foreign companies.

2. Why are people from high-context cultures such as China and Japan likely to be misunderstood by low-context Westerners?

High context cultures have a greater amount of shared knowledge. As a result ...

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High context and low context cultures, free trade

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