Answer:
1.Distance
2.Different languages
3.Lack of information about foreign businessmen
4.Documentation
5.Investment for longer period
Step-by-step explanation:
1.Distance:
Due to long distance between different countries, it is difficult to establish quick and close trade contacts between traders. Buyers and sellers rarely meet one another and personal contact is rarely possible.
2.Different languages:
A trader wishing to buy or sell goods abroad must know the foreign language or employ somebody who knows that language.
3.Lack of information about foreign businessmen:
Dispatch and receipt of goods takes a longer time and involves considerable expenses. Similarly, the costs of sending or receiving information are very high.
4.Documentation:
Both exporters and importers have to prepare several documents which involve expenditure of time and money.
5.Investment for longer period:
There is longer time gap between supply of goods and receipt of payment. Therefore, the exporter’s capital remains locked up over a longer period.