Factors of Trade Flashcards
1
Q
What is market saturation?
A
When it becomes impossible to expand sales further in a market.
2
Q
What are some push factors from expanding in home markets?
A
Saturated markets.
Competition.
3
Q
How does a saturated market push firms from expanding in home markets?
A
Sometimes expanding abroad is easier/cheaper than trying to reach new customers in a domestic market.
4
Q
How does competition push firms from expanding in home markets?
A
Places with less competition (often emerging and developing economies) become attractive as businesses can benefit from first mover advantage.
5
Q
What are some pull factors to firms expanding in home markets?
A
Economies of scale.
Reduced risk.
6
Q
How does economies of scale promote expanding in home firms?
A
