EU or Canada?

Question 1

Eurozone

Answer 1

19 of the 28 member countries of the EU, that have a common currency and sole legal tender

Question 2

What’s the problem with exporting the same furniture to 19 countries?

Answer 2

They all have different tastes and levels of income

Question 3

Why is the £ strengthening against the € bad for AFL if it wants to export furniture?

Answer 3

It will increase exporting costs, meaning they’ll either have smaller profit margins or have to increase costs- meaning the number of sales may reduce

Question 4

Why is the £ weakening against the Canadian $ good if AFL want to export?

Answer 4

Lowers costs, meaning they’ll either have an increased profit margin or they can decrease price- more competitive

Question 5

Which 3 areas should AFL further research before making a decision?

Answer 5

Customers
Competitors
Costs

Question 6

Why is production a big issue for AFL?

Answer 6

They have a small capacity in Bowton, meaning they’ll have to outsource production to Sweden or move

Question 7

Should AFL sell overseas?

Answer 7

Not at the moment, currently making a loss, so they shouldn’t risk it until their loss making situation is resolved