factors drivibg global business development

Question 1

What is the potential benefit of financial growth in a global business?

Answer 1

Increase revenue, expand market share, and improve profitability by entering or investing in international markets.

Financial growth opportunities arise from accessing larger markets and diverse customer bases.

Question 2

What does loss minimisation refer to in the context of global business?

Answer 2

Strategies to reduce financial risks associated with global expansion, such as currency fluctuations, market instability, and regulatory challenges.

These strategies aim to protect the company’s assets and maintain stable financial performance.

Question 3

How can domestic businesses seek financial support from international sources?

Answer 3

By looking overseas for investors and sources of funding.

This can lead to accessing additional capital and potentially more favorable investment terms.

Question 4

Why might Australian companies seek services and production from international markets?

Answer 4

To lower costs by sourcing services, labour, or production materials at a lower cost than in the domestic market.

Lower operational costs contribute to higher profitability and greater affordability for scaling up operations.

Question 5

What challenges do domestic markets present that might encourage businesses to expand internationally?

Answer 5

Mature or highly competitive domestic markets.

Expanding into international markets can provide opportunities for sales growth in regions with less competition.

Question 6

What seasonal advantage can companies gain by selling in both northern and southern hemispheres?

Answer 6

They can hedge against seasonal fluctuations in demand.

Selling products in both hemispheres allows companies to balance variations in demand throughout the year.

Question 7

What does consumer purchasing refer to?

Answer 7

The behaviours and habits that consumers exhibit when they buy products and services.

Question 8

What do businesses analyze in consumer purchasing?

Answer 8

Patterns of how and when consumers make purchases, as well as why they choose certain products or services.

Question 9

What is consumer spending?

Answer 9

How much money consumers are spending and what they are spending it on.

Question 10

What trends do analysts look for in consumer spending?

Answer 10

Trends in specific areas, such as spending on luxury goods vs necessities and the impact of economic factors like inflation.

Question 11

True or False: Confidence in online shopping affects consumer spending.

Answer 11

True

Question 12

How does trust in e-commerce benefit businesses?

Answer 12

It allows businesses to expand beyond local markets and reach a larger global customer base.

Question 13

What role does social media play in consumer behaviour?

Answer 13

Consumers use it to review and discuss products while companies use it to build brand awareness.

Question 14

How do companies utilize social media?

Answer 14

To engage with audiences, promote products, and build brand awareness through content sharing and advertisements.

Question 15

What is one advantage of distributing digital products?

Answer 15

Reduces costs and makes it easier for companies to grow internationally.

Question 16

Fill in the blank: Digital products can be distributed online without the need for _______.

Answer 16

[physical manufacturing, shipping, or storage]

Question 17

How does digital delivery affect international market reach?

Answer 17

It allows companies to reach international markets more efficiently and affordably.

Question 18

What types of products are considered digital products?

Answer 18

Music, software, eBooks, and e-learning.

Question 19

What are the benefits of digital product distribution?

Answer 19

• Reduces costs
• Easier international growth
• No physical distribution challenges

Question 20

What is the primary reason consumers use the internet for product research?

Answer 20

To gather information about products, compare prices, read reviews, and evaluate options

Question 21

What shift in consumer behavior is reflected by increased online research?

Answer 21

A trend towards making more informed and convenient purchasing decisions

Question 22

What is the main role of the World Trade Organisation (WTO)?

Answer 22

To ensure that trade flows as smoothly, predictably, and freely as possible

Question 23

What does the WTO provide for its member countries?

Answer 23

A framework for negotiating trade agreements, resolving trade disputes, and enforcing trade rules

Question 24

What are the key objectives of the WTO?

Answer 24

Increase global economic growth, reduce trade barriers, create a level playing field

Question 25

Fill in the blank: WTO regulations are agreed-upon rules and guidelines that member countries must follow in _______.

Answer 25

[international trade]

Question 26

What aspects do WTO regulations cover?

Answer 26

* Tariffs * Trade barriers * Intellectual property * Fair competition

Question 27

What is the purpose of sanctions imposed by the WTO?

Answer 27

To encourage compliance with regulations and restore fair trading conditions

Question 28

How are sanctions typically implemented by the WTO?

Answer 28

Through tariffs, trade restrictions, or other measures

Question 29

What must Free Trade Agreements (FTAs) between member countries eliminate?

Answer 29

Tariffs and other restrictions on all trade in goods

Question 30

What are tariffs?

Answer 30

Taxes on imports

Question 31

What are trade barriers?

Answer 31

Quotas or import restrictions on goods

Question 32

True or False: The WTO aims to promote practices that could harm global trade stability.

Answer 32

False

Question 33

What is the primary goal of Free Trade Agreements (FTAs)?

Answer 33

To create a free-flowing market for goods, enhancing trade efficiency and competitiveness among FTA members ## Footnote FTAs also align with broader principles of fair and open trade promoted by the WTO.

Question 34

What do FTAs aim to eliminate regarding service suppliers from member countries?

Answer 34

Substantially all discrimination against service suppliers ## Footnote This helps to increase trade in services.

Question 35

How do FTAs affect service providers from member countries?

Answer 35

They remove most forms of unequal treatment or discrimination ## Footnote Service suppliers should have the same access and opportunities as local providers.

Question 36

What types of service suppliers benefit from FTAs?

Answer 36

Suppliers in finance, telecommunications, or professional services ## Footnote They gain better access to other member countries' markets.

Question 37

What is one effect of reducing barriers in FTAs?

Answer 37

It boosts international trade in services ## Footnote This is due to easier operations and competition across borders.

Question 38

What do FTAs aim to simplify in trade between countries?

Answer 38

Customs procedures, trade regulations, and related requirements ## Footnote This simplification makes cross-border trade easier and more efficient.

Question 39

List some ways FTAs simplify trade processes.

Answer 39

* Faster customs clearance * Reducing paperwork * Standardising rules for importing and exporting ## Footnote These measures help reduce costs and speed up the movement of goods.

Question 40

What is the mission of the World Trade Organization (WTO)?

Answer 40

To support a stable, fair, and predictable global trading environment ## Footnote This includes maintaining safe global trade with clear rules and standards.

Question 41

How does the WTO help reduce misunderstandings in trade?

Answer 41

By establishing clear rules and standards ## Footnote This promotes transparency and mutual understanding among countries.

Question 42

What structured process does the WTO have for resolving disputes?

Answer 42

A process that allows countries to address and settle trade disagreements in an orderly and legally binding manner ## Footnote This helps to prevent conflicts and maintain trust among trading partners.