4.2.2 Assessment of a Country as a Market Flashcards
What are the five factors to consider when assessing a country as a market?
1)Levels and growth of disposable income
2)Ease of doing business
3)Infrastructure
4)Political Stability
5)Exchange rates
What is Disposable income?
The total income an individual has available to spend after paying income taxes and other bills
Are countries more a attractive with either a low or high disposable income?
HIGH
What products can Businesses target high disposable countries?
Highly differentiated products
Who are the top 5 emerging markets with the best middle class potential?
China
India
Indonesia
Nigeria
Philipenes
What is Ease of doing business?
An official measure carried out by the bank of how easy it is to start and run a business in that country.
What are the 5 easiest countries to do business?
Singapore
New zealand
Hong kong
Denmark
South korea
What are the 5 hardest countries to do a business?
Sonatia
Eritrea
Venezuela
Yeman
Libya
What is Infrastructure in a country?
The physical systems a country(or business) requires to operate effectively
What are the three factors of infrastructure?
1)Transport-road,railways,airports
2)Communication-Phone and internet facilities
3)Utilities-electricity,gas,water
Which two continents tend to have better quality infrastructure?
EU and USA(AMERICA)
What is Political stability?
The country’s relationship with others and its own people in terms of business
What are exchange rates?
Exchange rates are the conversion of one currency to another.
eg.£1:$1.50
What two things can happen to exchange rates?
1.Appreciation
2.Depreciation
What does SPICED stand for when talking about exchange rates?
S-strong
P-pound
I-imports
C-cheaper
E-exports
D-dearer
