4.2.1 Conditions That Prompt Trade Flashcards

1
Q

why might a business want to trade internationally

A
  • selling its products overseas
  • obtaining raw materials
  • moving production
  • extend the product lifecycle
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2
Q

what are push factors

A
  • factors that motivate a firm to move into a foreign country
  • they are negative factors in their domestic or current market
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3
Q

list possible push factors

A
  • saturated market with little opportunity for growth
  • high competition reducing sales
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4
Q

what are pull factors

A
  • factors that makes it attractive for a business to move abroad
  • they are positive factors about an overseas market
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5
Q

list possible pull factors

A
  • potential for growth
  • lower costs
  • spreading risks
  • availability of skilled staff
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6
Q

what is offshoring

A
  • moving a part of the business to another country
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7
Q

evaluate offshoring

A

+ reduces costs
- reduces the brand image
- risk of having to reshore

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8
Q

what is reshoring and why do businesses do it

A
  • when a business moves departments back to its country of origin
  • may be because of backlash or to improve quality of department
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