4.3.2.2 ASSESSMENT OF A COUNTRY AS A MARKET

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1

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

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2

What is disposable income?

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

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3

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

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4

Ease of doing business impacts business how

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

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5

Why does infrastructure matter in a country as a market

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

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6

Why does political stability matter to a business?

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

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7

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.

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