2. Reasons Why Businesses Seek To Enter Forgein Markets

Question 1

Second reason

Answer 1

• market saturated - impossible to expand sales further
• opportunity for higher revenue and profit in foreign market
• UK cash cow, overseas star (define)
• extend product life cycle (maturity/introduction)

Question 2

Others

Answer 2

Competition, spreading risk

Question 3

First reason

Answer 3

• rising incomes and large population overseas in Chindia
• Rapid rates of econ. Growth with rising middles classes means UK export opportunities
• Increased demand for income elastic goods (define) - as income grows demand will grown at a proportionately greater amount
• Leads to high profits