4.2.2 Assessment Of A Country As A Market

Question 1

What are the factors to consider when assessing a country as a potential market?

Answer 1

• disposable income
• ease of doing business
• infrastructure
• political stability
• exchange rates

Question 2

How would levels of disposable income influence the assessment of a country as a market?

Answer 2

Helps the business to see if citizens in that country will be able to afford the products they want to sell there

Question 3

How would ease of doing business influence the assessment of a country as a market?

Answer 3

Businesses will find it easier to trade in countries with similar cultures to them.

Complex laws, tariffs, and quotas makes trading more complicated.

Question 4

How could infrastructure influence the assessment of a country as a market?

Answer 4

A country with poor infrastructure would be a difficult market to operate in due to a lack of physical systems such as roads, electricity, and communications.

Question 5

How could political stability influence the assessment of a country as a market?

Answer 5

Political instability means there’s a risk of unpredictable changes in policies. This can affect people’s employment and disposable income.

Political changes can directly affect businesses through different regulations like tariffs.

So if there’s political instability, a business might wait until it is resolved before entering.

Question 6

How could exchange rates influence the assessment of a country as a market?

Answer 6

Businesses will look for countries with high exchange rates as it means imports are cheaper.