27 Factors of Trade

Question 1

Define offshoring

Answer 1

when a company moves part or all of the production process to another country.

Question 2

Define outsourcing

Answer 2

occurs when a business hires an external organisational to complete certain tasks or business functions.

Question 3

Define pull factors

Answer 3

factors that entrice firms into new markets and the opportunities that businesses can take advantage of when selling into overseas markets

Question 4

Define push factors

Answer 4

factors in the existing market that encourage an organisation to seek international opportunities

Question 5

Define risk

Answer 5

the probability of a (bad) event happening multiplied by its (negative) impact

Question 6

Define global consumer culture

Answer 6

a global culture where social status, values, and activites are centred on the consumption of goods and services.

Question 7

Define saturation

Answer 7

the point when most of the customers who want to buy a product already have it, or there is limited remaining opportunity for growth in sales.