Barriers to Entering Global Markets for Consumer Services

There are used four kind of barriers to entering global market which are given below

1. Protectionism:

Its a restraining trade between states through methods. For example, a directive regarding trans frontier television
broadcasting created a quota for European programs, requiring EU member states to ensure that at least 50% of
entertainment air time is devoted to "European works",

2. Restrictions on trans-border data flows

The European Commission is concerned that data about individual such as, income, spending patterns, spending
history, medical conditions, and employment are being collected, manipulated, and transferred between companies
with little regard to the privacy of the affected individuals

3. Protection of intellectual property

An important form of competition that is difficult to combat arises from pirated trademarks, processes, copyrights,
and patents

4. Cultural barriers and adaptation

Because trade in services frequently involves people-to-people contact, culture plays a much bigger role in services
than in merchandise trade

Market consumer service globally

Example

American airlines are falling all over themselves to capture greater shares of the expanding Latin American travel
market through investments in local carriers.

Insurance sales are burgeoning in Latin America, with joint ventures between local and global firms making the
most progress.

Financial services in China are undergoing a revolution, with new services being offered at a fast pacenew
sources of investor information and National Cash Register ATMs popping up everywhere. They are just getting
acquainted with ATMs in Poland as well.

Merrill Lynch is going after the investment-trust business that took off after Japan allowed brokers and banks to
enter that business for the first time only in recent years.

More than 670,000 foreign students (103,000 from India and 98,000 from China) spent some $18 billion in tuition
to attend American universities and colleges in 20092010. 40 Executive training is also a viable export for U.S.
companies. 41

Currently, phone rates in markets such as Germany, Italy, and Spain are so high that American companies cannot
maintain toll-free information hotlines or solicit phone order catalog sales. Other telecommunications markets are
deregulating, creating opportunities for foreign fi rms. Wireless communications are ubiquitous in Japan and Europe.

Cable TV sales are exploding in Latin America.

Sporting events are being sold all over the worldMexican football in Los Angeles, American football in Scotland
and Turkey, American baseball in Mexico, and professional soccer in China.

Finally, not only are foreigners coming to the United States for healthcare services in fast growing numbers, but
North American firms are building hospitals abroad as well. Recently two infants, one from Sweden and one from
Japan, received heart transplants at Loma Linda Hospital in Californialaws in both their countries