Thesis: Logistics Barriers to Trade

Sample Thesis Paper

It is essential to realize the exact nature of barriers that are caused by logistical issues before an insight into the significance of logistics trade barriers can be expected to be developed. When doing business on an international scale, the firm encounters a variety of business customs, transportation infrastructures, regulatory frameworks that impose restrictions and a spectrum of logistical services. In order to carry out the business, the firm needs to deal with a separate set of business customs, transportation infrastructures, restriction imposing regulatory frameworks and logistical services for each separate region or country.

The firm does not have control in scenarios such as these when compared to the degree of control and options that a firm has in its domestic domain (Carter, Pearson and Peng). The regulation of cycle times becomes highly third party oriented and the firm has to rely on the same to bring about an execution of a single cycle. This in turn contributes to the generation of higher logistical costs and leads the firm unable to satisfy the consumer. Hence, the generation of logistics trade barriers to take place and firms are forced to incur additional costs which decrease the productivity level of the business venture for the firm.

In order to bypass trade barriers, a frame has to plan towards establishing an effective and efficient logistics system that supports the international operations of the firm. Also, in order for logistics related trade barriers to be bypassed, the firm also has to bring about a rigorous regulation of the manpower and capital that is used in the foreign country. Logistics barriers can serve to bring about interruptions in material flows that can contribute to the interruptions in cash flows. If an understanding of these elements is developed beforehand, a firm can expect to achieve better outcomes from business ventures in the international market.

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