4.2.1 Conditions That Prompt Trade

Question 1

Push Factors

Answer 1

Where businesses feel they have to trade internationally because of issues in domestic markets.
- Saturated domestic markets.
- Intense competition.

Question 2

Pull Factors

Answer 2

Where businesses are attracted by opportunities to grow by expanding internationally.

• Risk spreading.
• Economies of scale.
• Outsourcing.
• Off shoring.