9.3a - Internationalism Flashcards
1
Q
International market definition
A
Any place where a firm attempts to sell products outside its geographical base
2
Q
Advantages of expanding internationally:
A
- Wider customer base
- Extend product life cycle
- Benefit from emerging markets
- Spreads risk
- Economies of scale
- Movement down experience curve
3
Q
How can a business choose the right market?
A
- Size of market and potential to grow
- Accessibility of market
- Compatibility of market (does it fit in with the culture?)
- Availability of skilled and cheap labour
- Good infrastructure
4
Q
What factors would make a market inaccessible?
A
- Trade agreements
- Wars and political situations
- Customers in some developing countries are inaccessible as they live in remote rural areas
