Cultural Barriers in International Trade and the Protection and Promotion of Culture

I present a model of international trade with cultural barriers and cultural learning. There are two countries that can produce a manufacturing good and cultural goods and can trade with each other. Due to cultural difference, consumers in a country have difficulty in appreciating cultural goods produced in the other country, which creates cultural barriers, and consumers can overcome these barriers by investing in cultural learning. I first study trade equilibrium given cultural barriers in the two countries, and then I analyze decisions. on cultural learning under three different scenarios and compare them. Based on the analysis, I provide economic explanations for countries' policies to protect and promote their own cultures at home and abroad.