assessing a country as a market

Question 1

what are the five things business will consider when assessing the makret they may expand into

Answer 1

how much money poepel have to spend

some counteries easier to sell in than others

good infrastructure

poltiical insatbility might be difficult to operate in

exchange rates

Question 2

frims need to look at how much money people have to spend

Answer 2

wealth of opoltion will affect size of businesses potential market

might want to mobe to a country with high levels of disposable income so that they have more customers

Question 3

some counteries will be easier to sell in than otehrs

Answer 3

busines find it easier to trade with counteries with simialr cultures and languages to the one they alreaddy operate in

take into account the laws in the country there entering, any political controls on trade through tarrifs and quotas

fewer restrictions on buying an sellerrs, the better and more appealing to other businesses

Question 4

good infrastrucutre

Answer 4

business will find it easier to expand into business with good infrastructe e.g rads, railways etc

if expand into business with poor infrastructre, may then need to pay to improve it

could be expesnive for busienss

Question 5

poltiical insatbility

Answer 5

means that a business in that country is at risk from unpredicatable changes in policies

could effect emplyment and disposbale incom people migth wait till problem is solvedd before entering the country

Question 6

exchange rates

Answer 6

depedn on imports and exports and whather exchange rate is high or low

not to decide a country with high exchange rates as exports may be harder and more expensive