4.2.2 Assessment of a country as a market

Question 1

Level of disposable income

Answer 1

-Influences level of spending
-Type of goods brought e.g luxury
-Need to consider the sustainability of growth and the size of the market

Question 2

Infrastructure development

Answer 2

-Roads, WiFi, water, reliable electricity
-Transportation of goods fast + reliable, Just-in-time production, lower costs and fresh goods

Question 3

Ease of doing business

Answer 3

-Planning permission for FDI
-Bureaucracy and protectionism make business harder
-Tax rates
-Access to utilities
-How long it takes to set up business

Question 4

Political stability

Answer 4

-Policies of government: taxes & labor regulations
-Corruption

Question 5

Exchange rates

Answer 5

-Impacts cost of importing raw materials
-How expensive goods are in foreign markets
-Not the most important factor because so unpredictable in the long run