4.2.1 Flashcards
1
Q
What are push factors
A
These are adverse situations which forces a husiness to look to international markets
2
Q
What are some examples of push factors
A
Market saturation: growth slows and market is saturated
Competition: donestic competitions druves down potential profits
Shareholders pressure: pressure for return on investments can cause a business to seek growth
3
Q
What is a pull factor
A
These are attractive opportunities which pull w business to go and move intoninternatijnal markets
4
Q
What are some examples of pull factors
A
- Acquiring brands and intellectual property
- Economies of scales
- cost savings
5
Q
What is off shoring
A
Moving manufacturing or servuce to a country with cheaper profuction
6
Q
What are some benefits of off shoring
A
- lower wage rates
- access to raw materials
- access to skilled workforce
