To reduce the risk of a trade barrier being imposed, what strategy would an international company benefit from?

Study for the DSST Principles of Supervision Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

An international company would benefit from engaging in trade agreements as a strategy to reduce the risk of trade barriers being imposed. Trade agreements are formal arrangements between countries to establish trade rules and promote smoother trade relations. By participating in such agreements, a company can enjoy reduced tariffs, improved access to foreign markets, and more favorable regulatory environments. This enhances their ability to operate internationally without facing sudden barriers that could affect their competitiveness or profitability.

Trade agreements often aim to create a level playing field, ensuring that all parties involved adhere to agreed-upon standards and practices. By being part of these agreements, an international company can mitigate the impact of political or economic fluctuations that might otherwise lead to the imposition of trade barriers such as tariffs, quotas, or import restrictions. This proactive approach helps companies navigate the complexities of international trade and fosters stable long-term business relationships between countries.

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