4.2 global markets and business expansion

Question 1

Push factors

Answer 1

leaving its domestic market

• saturated markets
• competition
• extension strategies

Question 2

Pull factors

Answer 2

A force attracting a business into foreign markets
EOS
Possibility of offshoring or outsourcing
risk spreading

Question 3

Linking conditions that promt trade with ansoffs matrix

Answer 3

market development, that assesses the risks of entering new markets. The lack of understanding of that market is what causes this strategy to be higher risk than simple market penetration.

Question 4

Global competitiveness definition

Answer 4

Measures the ability of a business to succeed against both domestic rivals and foreign competitors in international markets.

Question 5

Competing on a global level benefits

Answer 5

• global brand recognition
• dominating their domestic markets
• Competitiveness

Question 6

How is global competitiveness more likely achieved

Answer 6

Through product differentiation

Question 7

an appreciation in the £ value would mean

Answer 7

companies find it harder to sell their products in foreign markets due to increased prices
with companies that import significant quantities - their imported materials will cost them less in £ lowering costs.

Question 8

A depreciation in value of the £ effects: (opposite of appereciation)

Answer 8

products may seem cheaper in foreign markets which boosts exporting sales