Q6: Impact on the UK economy & UK organisations of increasing FDI in the ASEAN nations

Question 1

Benefits

Answer 1

Access to developing countries with growing living standards (aspirational population)

• Access to over 700 million customers, much larger than home market
• creating trade relationships often reduces/removes tariffs on imported goods
• Allows for the sharing of expertise and knowledge between business and industries
• Access to cheaper operating resources such as Tech components or labour
• Access to new markets allows for business growth = increased revenue = retained profits = being able to spread risk

Question 2

Costs

Answer 2

• Particular countries can be politically unstable and socially unstable (Risky)
• Language and currency differences may also reduce the success of international trade