4.2.2 - assessment of a country as a market

assent of a country as a market

1. levels and growth of disposable income

2. ease of doing business

3. infrastructure

4. political stability

5. exchange rates

why should a b consider these factors

when considering new market , they have to consider attractiveness of market → carrying out market Reaserch using Boston matrix + pestle

1- disposable income

• Asses the level of dispozible income to see if citizens able afford p they they will sell , if high _> more sales but if low → slower sales growth

• B looks at tests in income levels over time to see if potential growth in sales in future

• Income left after paying direct tax + destructions

2 Importance of EODB when deciding which markets to sell in

• EODB eanks each country against each other based on how easy set up a b / trade in that country , if higher ranking then have simple b regulations

• Issues to consider include accessing credit , registering properties + enforcing contracts + if diifucltiesin setting up → delays in operations + b generating sales

3- infrastructure

• it’s the physical , organisational , facilities structure need for operation of society / b .

• also means transportation of goods as without this a b can’t deliver to its customers onto ime

• also means telocumication + WiFi as without this a b can’t communicated with suppliers / customers

• if good improves production process + delivery of goods → reduces cost + increase sale

4 - political stability

• an agreement takeover of goverment , coup → riots , protests

• may risk of not gaining return on newsmen in country with political instability → subjected to corruptions , higher crime

• stable economy + goverment is less risky investment for b

5- exchange rate

• when assessing a country look as engage rate as strong pounds imports cheaper exports dearer

• Subjected to extreme fluctuations due to external factors - so b looks at historical tends of currency

• If moving country with strong currency thy can import raw materials at lower price but imports are expensive o abroad customers