Question on: JAMB Commerce - 2012

The major problem encountered in international trade is the differences in currency.

• Differences in currency: This is a major hurdle because businesses need to exchange currencies to facilitate transactions, which introduces exchange rate risks. These fluctuations can impact profits and create uncertainty.

• Distance: While distance can pose logistical challenges (transportation costs, time delays), it is not the major problem.

• Differences in culture: Cultural differences can affect consumer preferences and marketing strategies, but these issues are generally addressed through market research and adaptation.

• Politics: Political issues like trade barriers, tariffs, and embargos can certainly impact international trade, but they are not always the most immediate and consistent challenge that businesses face daily.