Conditions That Prompt Trade Flashcards
1
Q
What is meant by a push factor
A
Something that happens within an existing market that forces a business to look elsewhere
2
Q
What is meant by a pull factor
A
Something that attracts the business into the market
3
Q
What is an example of a push factor
A
Saturated markets - becomes impossible to expand sales further
Lots of competition
4
Q
What are examples of pull factors
A
Economies of scale
Diversifying can spread risk
5
Q
What is the difference between offshoring and outsourcing
A
Outsourcing means buying inputs from another supply rather than making them in house
Offshoring refers to the process of locating production abroad to benefit lower wage rates
