4.2.2 Assessment of a country as a market

Question 1

Factors to consider when assessing a market

Answer 1

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

Question 2

Ease of doing business

Answer 2

• labour
• supply chain
• legislation
• bureaucracy
• government support
• language barriers

Question 3

Level of growth and disposable income

Answer 3

• middle class growth
• GDP growth
• Gross domestic income per capita - measuring disposable income
• know the affordability

Question 4

What is disposable income?

Answer 4

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

Question 5

infrastructure

Answer 5

• communication links
• reliable energy supplies
• technology

Question 6

Political stability

Answer 6

• CPI - corruptions perception index
• trade blocs
• civil war and unrest
• protectionism/liberalisation

Question 7

Exchange rates

Answer 7

have significant impacts of the profits of a business operating in foreign markets

• if the exchange rate of the £ appreciates then it is more expensive to export to foreign countries
• any profit made in the foreign country from providing goods and services will be more expensive to repatriate to the UK as the business will have to turn the foreign currency into £’s - negatively impacts profit