Natural barriers to trade can take which two forms?
AThey can be legal or they can be financial
BThey can be political or they can be economic
CThey can be physical or they can be cultural
DThey can be temporary or they can be permanent
Answer & Solution
Correct answer: C. They can be physical or they can be cultural
1. Natural barriers arise from the world itself rather than from government action.
2. They can be either physical or cultural.
3. Distance is the physical example, because shipping cost can drive a price too high.
4. Language is the cultural example, because parties who cannot communicate cannot negotiate.
5. Legal and political obstacles are created by governments, so they are not natural barriers.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.3 Barriers to Trade_
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