While entering in global market we may face different types of difficulties. So that it is very difficult to enter and adjust in global market. Some barriers to global market entry are as follows:1. Political Risk: Political instability resulting from changing government policies, civil disorder and terrorism can create high political risk. This becomes a barrier to global market entry. Nationalism can also restrict global market entry.
2. Entry Barriers: Control over market entry serves as a barrier. It can be due to reservation for local nationals, local content requirement and balance of payment problems.
3. High Costs: High costs for factors of production serve as barrier to market entry. It reduces competitive advantages. High costs of logistics also serve as a barrier to global market entry.
4. National Barrier and Controls: In national barrier, tariff barrier while exporting and importing as border charges and fees serve as para tariff barriers, non-tariff barriers as subsidies, procurement policies, anti-dumping provisions and bureaucratic barriers, and controls as quality control such as quotas, exchange control which restrict flow of foreign currency affect global market entry.
5. Cultural Differences: Differences in values, attitudes, customs and other cultural factors can be barriers for global marketing entry.
6. Management Myopia: Ethnocentric mangers may see similarities between foreign country and home country. Polycentric mangers see foreign countries as unique in differences. Geocentric mangers see similarities and differences. Geocentric managers see similarities and differences between home and foreign countries. Ethnocentric management style can be a barrier to global market entry.
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