Final answer:
Imperfect information and nontariff barriers can impede the ability to assess a foreign market.
Step-by-step explanation:
The presence of imperfect information can impede the ability of a person to assess a foreign market in its true light. When information about the quality of products is highly imperfect, it may be difficult for a market to exist. This is because buyers and sellers may be less than 100% certain about the qualities of what they are buying or selling.
In a market with imperfect information, buyers become reluctant to participate as they cannot determine the product's quality. Similarly, sellers of high-quality or medium-quality goods may be reluctant to participate as it is difficult to demonstrate the quality of their goods to buyers. This creates a barrier to entry, making it more difficult for buyers and sellers to engage in a market.
Nontariff barriers are also a factor that can impede the ability of a person to assess a foreign market. These barriers include rules, regulations, inspections, and paperwork that a nation can enforce to make it more costly or difficult to import products. These barriers can discourage both buyers and sellers from participating in a market, further hindering the assessment of a foreign market.