4.3.2.2 ASSESSMENT OF A COUNTRY AS A MARKET

What factors affect a country’s attractiveness as a market?

• levels & growth of disposable income

• ease of doing business

• infrastructure

• political stability

• exchange rate

• Porter’s 5 forces

What is disposable income?

Total income an individual has available to spend after paying income tax & other payments

Name Porter’s five forces. IMMEDIATELY

1. Bargaining power of suppliers

2. Bargaining power of buyers

3. Threat of substitute products

4. Threat of new entrants

5. Rivalry among existing competitiors

Ease of doing business impacts business how

More paperwork/bureaucracy required to do business w difficult countries like China. Therefore costs r increased

Why does infrastructure matter in a country as a market

Transport, communication, utilities need to be good for marketing, production and transport purposes

Why does political stability matter to a business?

Civil wars means a greater likelihood of unrest :. business less confident to trade

Why does exchange rate matter to a business?

It could be expensive to repatriate profit made back to the business’s home country if the host country’s currency is weak.