4.2.2 Assessment of a country as a market Theme 4 Global business Write a list of criteria you would use to assess the attractiveness of a country as a market. Rank your criteria in order of importance. As a class agree on the top 5 criteria. 4.2.2 Assessment of a country as a market
4.2.2 Assessment of a country as a market In this topic you will learn about Factors to consider: levels and growth of disposable income ease of doing business infrastructure political stability exchange rate
Levels and growth of disposable income Disposable income is the total income an individual has available to spend after paying income taxes and any other statutory payments.
Quantitative skills Assume you receive the standard Personal Allowance and your annual salary is the UK average of £25700. What would be your monthly disposable income. What if you earned £80000 a year?
World Bank Group Ease of doing business rankings. The ease of doing business is how accessible markets are for a business. World Bank Group Ease of doing business rankings.
Infrastructure Infrastructure is the physical systems that a country (or business) require to operate effectively.
Infrastructure: Recap If you ran your own business and were looking to develop into a new market abroad which of these three elements of infrastructure would be the most important to you? Rank your answers and discuss why. Foreign governments will look to improve the infrastructure to help businesses operate more effectively. This will include the: Transport network Improves ease and speed of connections e.g. rail, road and air Provision of utilities Ensuring electricity, gas, water etc. are adequately supplied Provision of information Ensuring access to fast information e.g. broadband
How corrupt is the country where you want to trade? Political stability Political stability Poor governance Civil wars How corrupt is the country where you want to trade? How much are you prepared to change your moral standards to get a deal completed? http://www.worldaudit.org/corruption.htm
US growth: First casualty of a strong dollar. Exchange rate US growth: First casualty of a strong dollar. http://www.bbc.co.uk/news/business-32512640
Factors influencing the attractiveness of international markets Work in pairs to complete the table below: For each factor give one point that could make a country attractive and one point that could make a country less attractive Choose a specific country and try to relate PESTLE-C to the attractiveness of that country Factor Political Economic Social Technological Legal Environmental Competitive Attractive Unattractive Country http://www.worldbank.org/en/country What type of business would find your chosen country attractive as a market?