TRADE Barriers & PEST Analysis

Trade Barriers

International Trade

International trade happens when we stumble upon products that are produced outside from our country. For an example is for us Malaysians, we can see various kinds of products that are imported from different parts of the world. Examples are such as lingerie from Victoria's Secrets (USA) , BMW (Germany) and Gucci (Italy). How does it work? It is a process of exchanging goods with other countries. An easy example is when I will provide you pencils for the exams, in an exchange you will provide me the answers for the exam. (Just an example :P) So, anyways, back to the topic. We also have national trade. It is basically the same thing except that the goods are exchanged in its own country. For example is Malaysia. The process of exchanging goods between Kuala Lumpur and Penang. That is considered as a national trade.

In order to analyse it, the PEST analysis is created. It assesses markets, including competitors, from the point of a certain business.


Political

• It is viewed on terms such as:
• processes
• policies set by the government
• Such as pork are not allowed to be sold in muslim countries since it had been set by the governement.
• trading policies

• Such as things from outside are not allowed to be imported into North Korea and vice versa.
• wars and conflicts
• The wars and conflicts would affect the business in terms of economically.

Economical

• It is viewed on terms such as:
• international trade

• seasonality issues
• Issues such as more swimming suits are sold during summer and less are sold during the winter time.
• Demands tend to decrease during the winter time.
• product/services
• general taxation

Social

• It is viewed on terms such as:
• lifestyle trends
• consumer's attitudes and opinions
• As what they always say, "Customers are always right!" Even though they are wrong. 
• fashion trends

• Fashion trends are nearly the same as the seasonality issues.
• people changes their fashion trends everyday.

• influences

Technological

• It is viewed on terms such as:

• development
• is the development of the business well? Are the customers happy?

• communications

• Communications supplied are one of the most important term that falls under technologies.
• without communications, how can we contact the suppliers? the consumers?

• consumer buying