4.2.2 Assessment of a country as a market

Question 1

Factors to consider when accessing a market

Answer 1

• levels and growth of disposable income
• ease of doing business
• Infrastructure
• political stability
• exchange rates

Question 2

Factors to consider when accessing a market

-ease of doing business

Answer 2

• labour
• supply chain
• legislation
• barriers to entry
• language barriers
• excessive bureaucracy
• government support

Question 3

Factors to consider when accessing a market

-levels and growth of disposable income

Answer 3

• middle class growth
• GDP growth
• gross domestic income per capita - good way of measuring disposable income in foreign markets
• seen as a rising star and perfect for a strategy of market development

Question 4

Factors to consider when accessing a market

-Infrastructure

Answer 4

• communications links
• transport links
• utilities for basic business operations - broadband

Question 5

Factors to consider when accessing a market

-political stability

Answer 5

CPI - corruptions perception index

• ranks countries based on how corrupt a country’s public sector is
• poor governance makes it hard to trade successfully
• civil wars - unrest
• human rights
• trade protectionism/ liberalisation
• trade blocs

Question 6

Factors to consider when accessing a market

-exchange rates

Answer 6

• exposure to fluctuating exchange rates in foreign markets

- costs may increase and decrease

Question 7

Infrastructure defintion

Answer 7

refers to the facilities that support everyday economic activity

Question 8

Disposable income

Answer 8

the total income of an individual has available to spend after paying taxes and any other statutory payments