4.2

Question 1

state 5 push factors

Answer 1

saturated domestic markets
low growth opportunities
end of product lifecycle
need to diversify
government policies encourage trade

Question 2

state 5 pull factors

Answer 2

attraction to new overseas markets in emerging economies
opportunity to gain economies of scale
unsaturated markets
extend product lifecycle
expand market share

Question 3

what is offshoring

Answer 3

when a business decides to relocate overseas to take advantage of low labour costs in manufacturing, cost efficiencies and supply chain

Question 4

what is outsourcing

Answer 4

tasks that could be carried out by a business are contracted out to a third party business

Question 5

how can companies increase the length of product life cycle

Answer 5

rebranding
price discounting
seeking new markets
advertising
price reduction
adding value
exploring new markets
new packaging

Question 6

financial risks in international trade

Answer 6

transportation
import and export restrictions
issues with payments
communication
investment
competition

Question 7

marketing risks in international trade

Answer 7

language barriers
foreign markets
changes in the market
competition

Question 8

political risks in international trade

Answer 8

issues with payments
import and export restrictions

Question 9

operational risks in international trade

Answer 9

distance
language barriers
transport
competition

Question 10

advantages of expanding internationally

Answer 10

reach new customers & markets
increase revenue & market share
spread risk
reduce costs
economies of scale
production

Question 11

disadvantages of international growth

Answer 11

differing customer needs/wants
less knowledge of market
increased competition
loss of control (outsourcing)
spread too thin

Question 12

state 5 factors affecting a country as a market

Answer 12

levels of growth and disposable income
exchange rates
ease of doing business
infrastructure
political stability

Question 13

what is ease of doing business

Answer 13

looks at regulations and policies around starting and growing a business, important to attract more firms to a country and encourage faster growth

Question 14

what are the main factors effecting ease of doing business

Answer 14

political stability
infrastructure
levels of disposable income
position in a trading bloc
financial considerations
skills and availability of workforce

Question 15

define joint ventures

Answer 15

arrangement in which two or more businesses agree to create a new business that they own in partnership

Question 16

reasons for mergers and joint ventures

Answer 16

spread risk
entering new markets
acquiring national/international brand
securing resources
increasing global competitiveness

Question 17

problems with mergers and joint ventures

Answer 17

unrealistic objectives
communication and culture
finances
management issues

Question 18

what is a competitive advantage

Answer 18

having something which other businesses cant replicate

Question 19

state 6 factors influencing competitiveness

Answer 19

brand name
product reliability
quality and design
labor costs
technology
R&D
customer service

Question 20

what is cost leadership

Answer 20

business seeks to produce the same quality products as competitors at a lower price

Question 21

state 3 ways a business can gain cost leadership

Answer 21

good resource management
efficient production methods
minimize waste

Question 22

what are skill shortages

Answer 22

lack of workers with the right qualifications in the industry

Question 23

what are fixed contracts

Answer 23

contracts fixed over set tears helps stabilize uncertainty of fluctuating exchange rates