4.2.1 Conditions that prompt trade Flashcards
1
Q
Why do businesses want to target international markets?
A
- Less dependence on domestic market.
- Access faster growing markets with more demand.
- EOS.
2
Q
What factors contribute to international trade?
A
Push- a business is forced to sell overseas.
Pull- factors that entice firms into new markets.
3
Q
What is off-shoring?
A
Where a business decides to relocate overseas.
4
Q
What is outsourcing?
A
When a business hires a third party outside the business to operate a service.
5
Q
How can a business expands its product life cycle?
A
By selling the product in another country.
