Edexcel-Factors to consider when entering a new country 4.2

Question 1

What do businesses do to consider the attractiveness of a new business?

Answer 1

Extensive market research
Boston matrix
PESTLE

Question 2

Infrastructure includes

Answer 2

Roads
Transport
Communication

Question 3

What does good infrastructure do?

Answer 3

Improve production process which reduces costs and increases sales.

Question 4

What contributes to the ease of doing business?

Answer 4

Rules or regulations
Accessing credit
Registering properties

Question 5

What if there is a low ease of doing business?

Answer 5

May lead to delays in operations and a struggle to generate sales.

Question 6

Disposable income

Answer 6

Income individuals have left after paying indirect taxes

Question 7

High disposable income leads to

Answer 7

Higher revenues

Question 8

Exchange rates

Answer 8

Price of one currency in terms of another.

Question 9

Businesses expanding into countries with higher currencies leads to

Answer 9

Importing raw materials at lower prices.

Question 10

What happens when a country has political instability?

Answer 10

Businesses may risk not gaining a return on investment.

Question 11

What does a country with political instability have?

Answer 11

Corruption
Lack of law enforcement
Higher crime

Question 12

What does political instability also lead to?

Answer 12

Disruption in trading.

Question 13

What does a stable economy and government do?

Answer 13

Less risky investment for business.