Question

2. Study international trade issues from the perspective of the U.S. motion picture industry. What barriers does this industry face in entering foreign markets, and what are some ways it can address these barriers.

Answer 1

Following are the barriers for U.S. motion picture industry in entering foreign market;

1. Broadcasting quota in foreign market;

As we see that every country has made specific quota for broadcasting for different types of industry and for internal companies and for external companies as well. Thus it works as a barrier for U.S. motion picture industry in entering foreign market.

2. Local rules & regulation in the foreign market;

Every country have its own specific rules & regulations and these must be followed by the foreign companies. Thus U.S. motion picture industry has to face various legal problems in entering foreign market.

3. Taxation burden in the foreign market;

Most of the countries want to maximize its’ revenue through taxation on the foreign companies. Thus U.S. motion picture industry also face problem of higher tax burden. So companies of US suffer with severe problem in entering foreign market.

4. Intellectual property protection rules & regulations;

Intellectual property protection rules & regulations also work as barrier for U.S. motion picture industry.

5. Foreign investment restrictions;

Some countries in the world market make restrictions on the foreign investment and these restrictions prohibit foreign companies in making investment in these countries hence we can say that these restrictions are also barriers to U.S. motion picture industry.

6. Censorship rules;

Censorship rules are also major types of barriers to U.S. motion picture industry in entering foreign market. Each & every countries have specific censorship rules and these rules should be followed by the foreign companies.

U.S. motion picture industry can address these barriers with the help of following steps;

1. U.S. motion picture industry should follow foreign countries’ rules & regulations carefully so that U.S. companies can face these legal restrictions easily and can work efficiently in the foreign market.

2. U.S. motion picture industry should work within prescribed limit quota. Hence we can say that these companies should follow quota limits so that these companies can work safely in the foreign market.

3. U.S. motion picture industry should make proper provisions for taxations burden in the foreign market so that cost of the operations can be minimized and U.S. motion picture industry should not be negatively affected by such taxation burden etc.