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.