4.2.2 Assesement Of Country As A Market

Question 1

Businesses will consider a range of factors when?

Answer 1

Analysing which international markets to trade in or what countries they want to invest in through fDI

Question 2

Purpose of analysis

Answer 2

Reduce risk by identifying countries with greatest OPPs = structures to support trade + stability

Question 3

Assessing a country

Answer 3

Disposable incomes (what’s the demand like over there)
Ease of doing business (time + cost)
Developed infrastructure (transport links, maturity of industries/communication network)
Political stability (trading partners/relationships with other countries)
Stable exchange rate

Question 4

Examples of factors in countries

Answer 4

No permits required to set up business
No trading barriers
Stable exchange rate

Extensive rail + road networks
Gov has poor relations with international organisations
Tariffs on imported goods