4.2.2 / 4.2.3

Question 1

5 Factors when assessing a new market

Answer 1

-Levels of growth of disposable income
-Exchange rates
-Political stability
-Infrastructure
-Ease of doing business

Question 2

What is Infrastructure

Answer 2

The roads, transportation and communication which if good can reduce costs of production

Question 3

What is Ease of Doing Business

Answer 3

The ease of establishing a business when considering contracts, properties and credit

Question 4

What is Levels of growth in Disposable Income

Answer 4

Selling products in a country with high disposable incomes are likely to lead to more sales

Question 5

What is Exchange Rates

Answer 5

A stronger currency will be able to import raw materials at a lower cost

Question 6

What is Political Stability

Answer 6

A country with a stable government and enforcement is a less risky investment

Question 7

9 Factors when assessing a new production location

Answer 7

-Government Incentive
-Ease of doing business
-Political Stability
-Natural Resources
-ROI
-Location of Trade Blocs
-Infrastructure
-Skills and availability of labour
-Cost of production