Trade Flashcards
What are the reasons for remaining in the UK?
-History of the business
-Maintain control over quality
-Better customer service
What are the reasons for manufacturing elsewhere?
-Lower production costs
-Falling demand in home markets
-Supply of workers
What is a push factor?
Factors that push a business to expand outside of their domestic country
e.g.
-low growth opportunities
-need to diversify
What is a pull factor?
Encourage businesses to operate within markets abroad which present growth opportunities
e.g.
-way to extend product lifecycle
-emerging economies abroad
What is offshoring?
A business may decide to move part of the production process, or all of it, to another country
What is outsourcing?
When a business hires an external organisation to complete certain tasks or business functions
How can companies extend the product life cycle?
-Discounts/offers
-Change the packaging
-Add new features
-Promotion strategies
What do you do to assess a country as a market?
-Levels of growth and disposable income
-Exchange rates
-Ease of doing business
-Infrastructure
-Political stability
How do you assess a country for production?
-Cost of production
-Skills and availability of labour force
-Trade blocs
-Natural resources
-Government incentives
What is the ease of doing business?
Looking at regulations and policies that are important for starting and growing a business
e.g. taxes, trading, contracts
What is political stability?
Operating in places where political systems are stable
e.g. riots, civil war, terrorism
What is infrastructure?
Roads, transportation, communication, buildings, reliable power systems and premises
