Assessing Overseas Markets

Question 1

Assessing overseas markets

Answer 1

-what overseas market they would want to sell their product in

Question 2

Average disposable income consumers have in nation

Answer 2

-would assume businesses are attracted to disposable income/incomes that are high
-period of rapid economic development
-consumers have greater purchasing power
-now middle class

Question 3

Ease of doing business

Answer 3

-not as easy to trade due to costs
-difficulties to sell due to barriers

Question 4

Available infrastructure

Answer 4

-whats going to happen to products once they arrive
-transport/airports/road networks which could be expensive
-energy and communications
-copy cats selling at lower prices
-hard for business to protect ideas/patents

Question 5

Exchange Rates

Answer 5

-important factor
-assume that businesses are looking for a stronger currency than business in own domestic nation
-when country your based in has lower currency makes expanded goods more competitive

Question 6

Stability of exchange rates

Answer 6

-sales revenue will be converted when back home so it can be invested into the business
-less attractive if it fluctuates
-difficult to plan and expand
-if nation has steady exchange rates it allows managers to plan operations in that nation more effectively

Question 7

Political stability

Answer 7

-if unstable will be cautious
-civil arrest or conflict
-may have to withdraw product
-have committed costs of branding and marketing
-world trade organisation/United Nations