4.2.2 Assessment of a country as a market Flashcards

1
Q

Factors to consider when assessing a market

A
  • levels and growth of disposable income
  • ease of doing business
  • infrastructure
  • political stability
  • exchange rates
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2
Q

Ease of doing business

A
  • labour
  • supply chain
  • legislation
  • bureaucracy
  • government support
  • language barriers
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3
Q

Level of growth and disposable income

A
  • middle class growth
  • GDP growth
  • Gross domestic income per capita - measuring disposable income
  • know the affordability
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4
Q

What is disposable income?

A

total income of an individual has available to spend after paying taxes and any other statutory payments

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5
Q

infrastructure

A
  • communication links
  • reliable energy supplies
  • technology
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6
Q

Political stability

A
  • CPI - corruptions perception index
  • trade blocs
  • civil war and unrest
  • protectionism/liberalisation
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7
Q

Exchange rates

A

have significant impacts of the profits of a business operating in foreign markets

  • if the exchange rate of the £ appreciates then it is more expensive to export to foreign countries
  • any profit made in the foreign country from providing goods and services will be more expensive to repatriate to the UK as the business will have to turn the foreign currency into £’s - negatively impacts profit
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