Assessing A Country As A Market (section 18)

Question 1

What will a business need to consider when assessing a country as a market

Answer 1

The income of the population- How much disposal income they are going to have to spend into their business.

Ease of doing business with them- Any trading blocs

Language barriers or culture (products might not be accepted in certain cutlers)

Restrictions

Question 2

What might a business look for when assessing a country as a market

Answer 2

Barriers

Infrastructure

Politics

Exchange rates

Question 3

Why is infrastructure considered when assessing the counrty as a market

Answer 3

Good infrastructure means will have the available technology and reliable suppliers

Bad infrastructure means the business might not be reliable

Question 4

Why are exchange rates considered when assessing the country as a market

Answer 4

It compares the price of one currency to another

A business might not choose to export goods to countries with a high exchange rate as this would be expensive for customers

Imports with a high exchange rate are more attractive because this means they will have cheaper imports in comparison to other countries.