Summary:

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Capital rationing is crucial to organizational success. Any company must overcome it through short-term or long-term financing, considering whether capital is rationed for the short or long term. Smooth delivery of goods is essential for any trade, so distribution channels must be strong because it can become a barrier in work and negatively affect customers' satisfaction. Economies of the scale indicate that large businesses will have less cost per unit. In contrast, small businesses will have a higher cost per unit, influencing the selling price and profitability. Companies are also affected by government policies like fiscal policy and import duties, which must be determined before opening a business in a country or trading with customers or suppliers from another country. It's also vital that different geographical regions possess different tastes and demands for other products. The need for product X in country A could not be the same in country B because of values, norms, preferences, and economic conditions.
Switching costs also affect the retention of customers to a business, and customers are unlikely to pay high switching costs. There are several common trade barriers in international trade, i.e. distance, tariffs, duties on imports, and non-tariff barriers, which could influence imports, exports, and expansion in other countries or regions. Porter's five forces are the Power of suppliers, competition in the market, the potential of entry into a new market, the Power of customers, and the threat of substitute products. According to Greet Hofstede, there are four-dimensional cultural values, i.e. power distance, individualism-collectivism, uncertainty avoidance, masculinity-femininity. High-context cultures communicate implicitly, whereas low-context cultures communicate in implicit ways. An agent can be an employee or self-employed, whereas a distributor is the business client who sells the purchased goods to his customers. E-commerce refers to buying and selling online, which provides exposure to international businesses and customers.