Impact of Trade BarriersThere are several pizza franchises that operate internationally, and this is an opportunity open to Papa John's as well. Both Pizza Hut and Domino's have major international operations, and these have been facilitated by a reduction in trade barriers (Buss, 2013). International expansion, especially to emerging markets, has formed a part of the company's growth strategy since 2013 (Euromonitor, 2013). When trade barriers are reduced, this helps franchise businesses in a couple of key ways. First, it allows them to source inputs from anywhere it is cheapest. Papa John's might get its ingredients from America, but it may get its ovens from China, and its cardboard boxes from Canada – wherever is cheapest and trade makes foreign goods much cheaper than they otherwise would be without the reduction of those trade barriers. The other way that declining trade barriers help franchises like Papa John's is that it allows these companies to enter foreign markets, because there are fewer barriers on investment flows, and fewer barriers on things like moving managerial talent around the world. So if Papa John's wants to start in a country, it can send both the talent and...
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