4.2.5

Assessment of a Country

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Attractiveness of Internationalisation

Various factors affect a business choosing an international market to enter.

Size of the local market

Size of the local market

  • The market’s growth rate and size must be considered as a large or growing market will be more attractive.
Political stability and culture

Political stability and culture

  • The political stability and culture of the country in which the international market is located must be considered as this can affect the complexity of entering the market.
Local competition

Local competition

  • Local competition must be considered as this can affect the likelihood of a foreign business being able to access the market with success.
Exchange rates

Exchange rates

  • Exchange rates can affect the attractiveness of a foreign market by influencing the relative cost of imports and exports.

Assessment of a Country as a Product Location

When considering producing in a foreign market, a business must consider different factors:

Cost of production and labour

Cost of production and labour

  • Costs of production will affect a business’ decision whether to produce in a new location.
  • Skills and availability of labour force will affect a business’ decision whether to produce in a new location.
  • The USA has higher wages and labour costs than India.
Existing infrastructure and incentives

Existing infrastructure and incentives

  • Infrastructure will affect a business’ decision whether to produce in a new location.
  • Government incentives will affect a business’ decision whether to produce in a new location.
  • Likely return on investment will affect a business’ decision whether to produce in a new location.
  • Nations like Japan and Sweden have very good transport infrastructure relative to most nations.
Stability and resources

Stability and resources

  • Trade blocs will affect a business’ decision whether to produce in a new location.
  • Political stability will affect a business’ decision whether to produce in a new location.
  • Natural resources will affect a business’ decision whether to produce in a new location.
  • Political coops are a major risk for businesses.
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1

Exploring Business

1.1

Features of Business Organisations

1.1.1Sole Traders & Partnerships1.1.2Private & Public Limited Companies1.1.3Types of Liability & Not-For-Profits1.1.4Purposes of Businesses1.1.5Purposes of Businesses 21.1.6The Different Economic Sectors1.1.7Multinational Companies1.1.8Stakeholders1.1.9Influence of Stakeholders
1.2

Organisation of Businesses

1.2.1Organisational Structure1.2.2Types of Organisational Structures1.2.3Business Aims & Objectives1.2.4Business Aims1.2.5Business Objectives
1.3

Business Environment

1.3.1External Influences1.3.2Political & Legal Change1.3.3Economic Environment1.3.4Social & Technological Environment1.3.5Lifestyle & Technological Environment1.3.6Corporate Social Responsibility1.3.7The Competitive Environment1.3.8Innovation1.3.9Risk & Uncertainty1.3.10Porter's Five Forces1.3.11SWOT Analysis
2

Marketing Campaigns

2.1

Marketing

2.1.1Setting Marketing Objectives2.1.2Customer Needs2.1.3The Market2.1.4Competition & The Market2.1.5Consumer Behaviour2.1.6Market Research2.1.7Forms of Market Research2.1.8Market Segmentation2.1.9Cultural & Social Factors in Marketing2.1.10Promotional Decisions 32.1.11Pricing Strategies
2.2

Marketing Mix

2.2.1Marketing Mix2.2.2Product Life Cycle2.2.3Pricing Decisions & Price Skimming2.2.4Pricing Decisions & Price Penetration2.2.5Promotional Decisions2.2.6Promotional Decisions 22.2.7Promotional Decisions 32.2.8Market Mapping
3

Business Finance

3.1

Sources of Finance

3.1.1Internal Finance3.1.2External Finance3.1.3External Finance 23.1.4Sources of Business Finance
3.2

Financial Planning

3.2.1Revenue3.2.2Costs3.2.3Cash & Cash Flow3.2.4Cash & Cash Flow 23.2.5Break-Even Analysis3.2.6Profits
3.3

Financial Statements

3.3.1Balance Sheets3.3.2Income Statements3.3.3Liquidity
4

International Business

4.1

Globalisation

4.1.1Growing Economies4.1.2Specialisation & Trade
4.2

International Business

4.2.1Internationalisation4.2.2International Trade4.2.3MNCS4.2.4Conditions that Prompt Trade4.2.5Assessment of a Country
4.3

International Economic Environment

4.3.1Globalisation4.3.2Factors Contributing to Globalisation4.3.3Protectionism4.3.4The EU & the WTO4.3.5Trading Blocs
4.4

Factors Affecting International Business

4.4.1Global Competitiveness4.4.2Ethics of Global Business4.4.3Controlling MNCs4.4.4Cultural & Social Factors in Marketing
5

Principles of Management

5.1

Management & Leadership

5.1.1Managers5.1.2Management Theories5.1.3Managing Organisational Culture5.1.4Management Style
5.2

Theories of Motivation

5.2.1Motivating & Engaging Employees5.2.2Taylor's Theory5.2.3Mayo's Theory5.2.4Maslow's Theory5.2.5Herzberg's Theory
5.3

Managing Change

5.3.1Change5.3.2Key Factors in Change5.3.3Scenario Planning5.3.4Managing Change5.3.5Managing Strategic Implementation
6

Business Decision Making

6.1

Business Principles & Practices

6.1.1Influences in External Environments6.1.2Product Decisions6.1.3Competitive Environment6.1.4Corporate Strategy6.1.5Quantitative Sales Forecasting6.1.6Legislation
6.2

Quality Management

6.2.1Importance of Quality6.2.2Measuring Quality6.2.3Total Quality Management6.2.4Evaluating TQM
6.3

Human Resources

6.3.1Contracts6.3.2Recruitment6.3.3Training a Workforce
6.4

Documents & Business Decisions

6.4.1Sales Forecasts6.4.2Managing Strategic Implementation6.4.3Problems with Strategy

Practice questions on Assessment of a Country

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Which of the following is least likely to be an attractive market to join?Multiple choice
  2. 2
    Which situation is most attractive for a business choosing a country as a product location?Multiple choice
  3. 3
    Which of the following situations are attractive for businesses when choosing a new location?True / false
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Conditions that Prompt Trade

Globalisation