4.2 Global markets and business expansion Flashcards
(7 cards)
1
Q
4 conditions that prompt trade
A
- push factors
- pull factors
- off-shoring and outsourcing
- extending product life cycle by selling in multiple markets
2
Q
2 push factors
A
saturated markets
competition
3
Q
2 pull factors
A
EOS
risk spreading
4
Q
5 factors to consider when assessing a country as a market
A
- levels and growth of disposable income
- ease of doing business
- infrastructure
- political stability
- exchange rate
5
Q
9 factors to consider when assessing a country as a production location
A
- costs of production
- skills and availability of labour force
- infrastructure
- location in trade bloc
- government incentives
- ease of doing business
- political stability
- natural resources
- likely return on investment
6
Q
5 reasons for global merges or joint ventures
A
a) spreading risk over different countries/ regions
b) entering new markets/ trade blocs
c) acquiring national/ international brand names/ patents
d) securing resources/ supplies
e) maintaining/ increasing global competitiveness
7
Q
how can a business gain global competitive advantage (2)
A
cost competitiveness
differentiation
