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
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
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
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
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
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
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