4.2.2 Assessment of country as a market

Question 1

Disposable income?

Answer 1

amount of money that a person has left over after they have paid taxes and national insurance

Question 2

2 main reasons why company operate in different country?

Answer 2

distribute and sell products to reduce risk or enter new markets
set up production factories

Question 3

5 factors to consider when setting up business in new country?

Answer 3

• costs of production
• Language culture
• exchange rate
• location in trading bloc
• political stability

Question 4

Infrastructure?

Answer 4

basic systems, facilities, services required for country’s economy to function

Question 5

Whats the Ease of Doing Business Index?

Answer 5

looks at range of factors that make a business easier to start and run

Question 6

3 things the Ease of Doing Business Index includes?

Answer 6

• time and cost
• ease with which employees are hired/fired
• dealing with permits and regulations

Question 7

Why must countries have good infrastructures?

Answer 7

they want efficient distribution of goods and be able to communicate well with suppliers and services

Question 8

Why do countries need good political stability?

Answer 8

political unrest can be unattractive to businesses and corruption can become a huge problem