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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
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Threat of new entrants
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.
