Factors driving global Buisness developement

Question 1

Financial growth opportunities

how x3

Answer 1

there are various ways a company can increase it’s profits or sales over time through
1.) expanding into new markets
2.) Improving opperational efficiency
3.) introducing new products or services

Question 2

Loss minimisation

how x3

Answer 2

loss minimisation is a key driver of global buisness development because it forces companies to become more efficient innovative, manage risks and strategically allocate resources. these actions collectively enhance a company’s ability to expand and succeed in global markets.

1.) Diversifying
2.)Sustainability
3.)market expansion

Question 3

consumer purchasing and spending patterns

definition

Answer 3

refers to the habits, behaviours and trends that dictate how individuals or HH buy and spend their money on goods and services. these patters then provide insight into what, when why and how consumers make purchasing decisions.

Question 4

Consumer purchasing and spending patterns

key aspects x3

why x3

Answer 4

key aspects

1.) frequency of purchases
2.) Price sensitivity elasticity PED
3.) brand preference

why

1.) for businesses
-helps forecast demand, help marketing strategies and creating products that align with consumer needs.
2.)Economist
-indicate economic health of the economy and consumer confidence
3.) Markets
-guides advertising, promotions and pricing strategies allowing business to meet consumers needs and stay competitive in the market

Question 5

Deregulation of the financial market

financial market definition

types of deregulations x3

Deregulation works by x2

Answer 5

any market place where the trading of securities occurs including stock market, forex market finance markets are vital to the smooth operation of the economy.

Types of deregulation

1.) foreign bank entry
-1983 foreign banks allowed in country increased competition and diversifying

2.) Intrest rate controls
-allows banks to set there Intrest rates

3.)capital market liberalisation
-removal or reduction of restrictions on the capital market

Deregulation

1.)reduced restrictions/barriers to the flow of money

2.) reduced restrictions on the movement of finance, foreign companies/ investment.

Question 6

world trade organisation (WTO)

Question 7

World Trade Organisation (WTO)

regulations x2

sanctions

Answer 7

Regulations

-The WTO has several key regulations to ensure fair and open international trade. These regulations include

1.) most favoured Nation Treatment
-countries must treat all WTO members equally by granting the same trade advantages E.G Low tariffs.

2.)Anti dumping
-allows members to take action against imported goods that are being sold below market value

Sanctions
-Trade sanctions (stopping trade activities) against another party (country) may be imposed. these could also be suspension of concessions through the impositions of tariff surcharges. they are a form of economic sanction.
-The WTO allows trade sanctions in the form of Import/export restrictions and suspension of concessions when a country violates trade rules.