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question 7 5 pts in the context of international trade, which of the fo…

Question

question 7 5 pts in the context of international trade, which of the following companies is facing the barrier of legal differences? an african company that can only import a limited amount of metal from an arab country because of international trade restrictions a south american company that sells products that cater to specific demographics of foreign countries a central american company that takes contracts from overseas manufacturers to produce custom products at a low price an asian company that introduces a new shoe line in an american country that reflects american cultural values

Explanation:

Brief Explanations

To determine which company faces legal differences as a barrier, we analyze each option:

  • Option 1: An African company with import limits due to international trade restrictions (like quotas/tariffs) involves legal regulations (trade laws) limiting imports, so this is a legal difference barrier.
  • Option 2: Selling to specific demographics is about market segmentation, not legal differences.
  • Option 3: Taking overseas contracts for production is related to outsourcing/cost - efficiency, not legal barriers.
  • Option 4: Reflecting cultural values in a product line is about cultural adaptation, not legal differences.

Answer:

A. An African company that can only import a limited amount of metal from an Arab country because of international trade restrictions