4.2.2 Assessment of country as a market Flashcards
Disposable income?
amount of money that a person has left over after they have paid taxes and national insurance
2 main reasons why company operate in different country?
distribute and sell products to reduce risk or enter new markets
set up production factories
5 factors to consider when setting up business in new country?
- costs of production
- Language culture
- exchange rate
- location in trading bloc
- political stability
Infrastructure?
basic systems, facilities, services required for country’s economy to function
Whats the Ease of Doing Business Index?
looks at range of factors that make a business easier to start and run
3 things the Ease of Doing Business Index includes?
- time and cost
- ease with which employees are hired/fired
- dealing with permits and regulations
Why must countries have good infrastructures?
they want efficient distribution of goods and be able to communicate well with suppliers and services
Why do countries need good political stability?
political unrest can be unattractive to businesses and corruption can become a huge problem