4.2.2 - Assessment of a country as a market Flashcards

1
Q

What factors which can make some countries more attractive than others to SELL IN*

A

levels and growth of disposable income ease of doing business infrastructure political stability exchange rate

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2
Q

What is disposable income

A
  • Disposable income is the amount that a customer has to spend after all their bills have been paid
  • If a business wants to move into another country it may assess the level of disposable income in that country
  • This helps a business to see if the citizens of the country will be able to afford the products that they want to sell there
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3
Q

What is the ease of doing business

A
  • Theease of doing businessindex is an index created by the World Bank Group.
  • Higher rankings (a low number) indicate better, usually simpler, regulations forbusinessesand stronger protections of property rights e.g. patents
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4
Q

What is infrastructure

A
  • Infrastructure is the basic physical and organisational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or business
  • Many developing nations have been slow to get their infrastructure in place, and through failure to maintain it have let it decline
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5
Q

Why is infrastructure important to sales

A
  • Infrastructure can mean road, rail and transport. Without this a business cannot deliver to its customers on time
  • Infrastructure can also mean telecommunications, without this a business cannot communicate with its suppliers and its customers
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6
Q

What is political stability

A
  • The world bank has a series of worldwide governance indicators, one of which is the political stability and absence of violence and terrorism
  • Political instability in a country could be a major risk factor so should be taken into consideration when assessing a potential country as a market for your products
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7
Q

What are exchange rates

A

When assessing a country as a potential market a business will look at the exchange rates:
- Strong
- Pound
- Imports
- Cheaper
- Exports
- Dearer

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