Factors (NEED TO KNOW)

Question 1

Factors leading to a change in demand

Answer 1

-Prices of substitutes and complementary goods
-Change in income
-Advertising and branding
-Demographics
-External Shocks
-Seasonality

Question 2

Assessment of a country as a market (factors)

Answer 2

-Growth of disposable income
-Ease of doing business
-Infrastructure
-Political Stability
-Exchange rate

Question 3

Assessment of a country as a production location (factors)

Answer 3

-Cost of production
-Skills and availability of labour force
-Infrastructure
-Location in trade bloc
-Government incentives
-Ease of doing business
-Political stability
-Natural resources
-Likely return on investment

Question 4

Cultural/social factors

Answer 4

Cultural differences
different tastes
language
unintended meanings
inappropriate/inaccurate translations
inappropriate branding and promotion

Question 5

Factors leading to a change in supply

Answer 5

Changes in the cost of production
Introduction of new technology
Indirect taxes
Government subsidies
External shocks