2. Environmental Analysis - Economic, Political, Legal

Question 1

Explain the Role of the Gov.

Answer 1

1. Participator - monopoly
2. Facilitator - giving bonuses, subsidies
3. Regulator - putting taxes to direct

Question 2

List the forms of Intervention.

Answer 2

1. Tariffs
2. FDI restrictions
3. Quotas
4. Anti-dumping duties
5. Countervailing duties
6. Embargos
7. Export bans
8. Product standards

Question 3

List the Rationale for Intervention.

Answer 3

1. Protect domestic employment
2. Protect consumers (drugs)
3. Protect environment/agriculture
4. Infant industry argument
5. Support domestic firms
6. National security (self-sufficiency)
7. Retaliation - intervene as revenge

Question 4

List the effects of Intervention.

Answer 4

1. Companies - good/bad impact
2. Consumers - products hard to find/ change in consumption
3. Gov - sanctions - North korea tax

Question 5

What are the “many” type of risks?

Answer 5

1. general instability - rapid/unpredictable change
2. Ownership - gov/ local takeover
3. Operating - to what extend can I run my biz?
4. Transfer - $ restrictions/issues

Question 6

What does Law & Mktg Mix consist of?

Answer 6

1. Product - labels/ingredients
2. Price - gov control/anti-dumping/transfer pricing
3. Distribution - regulations, nature of channels
4. Promotion - ad style/ local content requirements/ prohibitions on advertising certain products

Question 7

Ways to measure markets.

Answer 7

1. Income
2. PPP
3. Population
4. QoL
5. Resources
6. Infrastructure
7. Geography
8. Debt

Question 8

Types of currency.

Answer 8

1. Fixed - gov sets/maintains

2. Floating - private mkt through Supply and demand

Question 9

List the strategies for recession climates.

Answer 9

1. pull out
2. emphasise a product value
3. change the product mix
4. repackage goods
5. maintain stricter inventory
6. look outside the region for expansion
7. increase advertising in the region
8. increase local procurement