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What is meant by the term infrastructure?
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What is meant by the term infrastructure?
Infrastructure refers to facilities such as roads, transportation, and communication networks that can affect business operations.
Define the term ease of doing business.
Ease of doing business refers to the simplicity of the rules and regulations involved in establishing a business in a particular market.
True or False?
High disposable income in a country leads to slower sales growth.
False.
High disposable income in a country is likely to lead to more sales.
What is an exchange rate?
An exchange rate is the price of one currency in terms of another e.g £1 = $1.20.
True or False?
Political stability is important for businesses entering new international markets.
True.
Political stability is important for businesses entering new international markets because it reduces the risk of not gaining a return on investment.
What does PESTLE stand for in the context of market analysis?
PESTLE stands for political, economic, social, technological, legal, and environmental factors considered when analysing new markets.
True or False?
The Boston Consulting Group Matrix is a tool used for analysing international markets.
True.
The Boston Consulting Group Matrix is a tool commonly used for analysing products in international markets.
What is disposable income?
Disposable income is the income individuals have left after paying direct taxes, such as income tax and other deductions, such as pension contributions.
What are economies of scale?
Economies of scale are the reduction in unit costs that can be achieved by operating on a larger scale, e.g. gaining bulk buying discounts
True or False?
Entering international markets always leads to higher profit margins.
False.
While entering international markets can potentially lead to higher profit margins, it's not guaranteed and depends on various factors.
How does entering international markets help spread risk?
Entering international markets helps spread risk by reducing exposure to market changes in one country and potentially avoiding localised economic downturns.
True or False?
Language considerations in international marketing involve accurate translation.
True.
Language considerations in international marketing involve accurate translation as well as understanding language nuances and idioms.
What are cultural differences?
Cultural differences are variations in values, beliefs, customs, and traditions that businesses need to understand and adapt to in different markets.
True or False?
The internet has made entering international markets more complex.
False.
The internet makes it easier than ever to enter international markets