4.2.2 - assessment of a country as a market

Question 1

what does it mean to assess a country as a market?

Answer 1

to look at a range of factors to analyse which international markets to trade with or which countries they want to invest in through FDI.

Question 2

true or false:
growth in disposable incomes is a factor to consider when assessing a country as a market.

Answer 2

true - they need to ensure consumer demand will be present.

Question 3

name 4 other factors that a business may need to consider when assessing a country as a market.

Answer 3

• ease of doing business (time & cost of setting up and running a business).
• developed infrastructure (transport links, maturity of complementary industries & communications network).
• political stability (political unrest and relationships with other countries/trading partners).
• stable exchange rate.