4.2.2 Assessment of a country as a market Flashcards
1
Q
What are the common factors determining market attractiveness?
6
A
- Lvls of disposable income
- Quality of infrastructure
- Growth of disposable income
- Political stability
- Ease of doing business
- Exchange rates
2
Q
What is disposable income?
1
A
- Money a household has to available to spend from income after income tax
3
Q
How can growing levels of disposable income be an opportunity for a business?
2
A
- People earn more = spend more
- Spend different = new niche markets emerge
4
Q
Problems with entering too early/late into a country with growing levels of disposable income?
2
A
- Early = not big enough market to break even
- Late = rivals already established brand loyalties
5
Q
How is ease of doing business measured?
1
A
- Time taken for common business activities
6
Q
Examples of what is measured when assessing ease of doing business?
5
A
- Total tax rate as % of profit
- Days to import item
- Days to wait for construction permit
- Days to start business
- Days to get electricity
7
Q
Examples of infrastructure?
5
A
- Roads
- Railways
- Running water
- Reliable electricity
- WIFI
8
Q
What does the term political stability cover?
4
A
- Tax reg
- Labour reg
- Gov bureaucracy
- Corruption
9
Q
An advantage of a politically stable market?
1
A
- ^Business confidence in forecasts
10
Q
Why are exchange rates an important consideration when assessing a country as a market?
1
A
- Decide WHEN to enter new market
