theme 4 global market and business expansion

Question 1

what are push factors

Answer 1

factors that make a business to look at opportunities in different countries
push factors are threats that affects a firms profitability

Question 2

competition and saturation in push factors

Answer 2

saturation:
no potential for growth

competition
very crowded and competitive

moving to emerging markets allows new opportunities and provides a new target market so sales can increase. emerging markets have less competitors so consumers have fewer options to choose from this allows firm to charge higher prices
or creates awareness for a product

Question 3

pull factors

Answer 3

something that makes it attractive for businesses to trade in

Question 4

example of pull factors

Answer 4

specialised people
cheaper supplies and material
cheaper production and cheaper resources
less corporation tax and relaxed legislation

Question 5

what is offshoring

Answer 5

locating department in different countries

Question 6

reshoring

Answer 6

when a business moves its department to original country

Question 7

what is cost competitiveness

Answer 7

when a business has a low cost compared to competitors
charging lower prices allows a firm to be more competitive
and

firm could be more cost competitive if they lowered production cost by offshoring production or selling to a global market

Question 8

differentiation

Answer 8

when products have unique features that competitors dont have