Theme 4 Topic 4 - Gobal Markets

Question 1

Define Push Factors

Answer 1

Adverse factors in the existing market encouraging a firm to seek international opportunities

Question 2

What are two examples of push factors?

Answer 2

Saturated markets and Competition

Question 3

Define Pull Factors

Answer 3

Factors that entice firms into new markets

Question 4

What are two examples of pull factors?

Answer 4

Economies of scale, Risk spreading

Question 5

Define Off-Shoring

Answer 5

Moving manufacturing or service industries to a location with lower costs

Question 6

Define Outsourcing

Answer 6

Moving an entire business function or project to a specialist external provider

Question 7

What is a disadvantage of outsourcing?

Answer 7

Reliance on third party firms can leave a firm vulnerable to poor quality or communication difficulties between the firms

Question 8

What are five key considerations when deciding whether an overseas country could be a good market to enter?

Answer 8

Disposable incomes, Ease of doing business, Infrastructure, Political instability, Exchange rate

Question 9

What are eight key considerations when deciding whether an overseas country could be a good production location?

Answer 9

Cost of production, Skills and availability of workforce, Ease of doing business, Infrastructure, Location in trade bloc, Political stability, Natural resources, Likely return on investment