The Problems of International Trade

Shipping costs are a big one. You have to actually get goods from one country to the next. There are also hassels with working across language barriers, times ones and cultural differences. Or maybe there's just a lot of red tape involved in being allowed to do business in another country. All of these things can add your marginal cost. But hangon. Tariffs have fallen. International travel became cheaper with big containerships and the birth of flight. Our banks now talked to each other making it easier to zap money around the world. Technology allows us to talk with people in other countries all the time,. As a result, trade in services has also been thriving.