conditions that prompt trade Flashcards
1
Q
push factors
A
saturated markets due to low growth/market share opportunities
competition, is especially tough in Western world
2
Q
pull factors
A
new bigger markets to maximise sales
lower cost/secure resources (cheap labour/materials)
lower cost of transportation
technological expertise
managerial/financial expertise (skills transfer)
3
Q
how is this linked with EOS and spreading risk
A
leads to growth, higher levels of production. Business operates in more markets so may be less affected by economic downturns.
4
Q
offshore
A
shifting jobs to another country
5
Q
outsourcing
A
shift job to another company e.g market research
6
Q
why may a business offshore/outsource
A
lower cost than internal recruitment/training
cheaper labour
different expertise
