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Page 1

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Unit 3 ­ International Business
Unit 3.3.3 ­ How Does a Company Decide Which Countries to Target?
Assessment of a Country Markets
Roseanne Theyara

Geographic Proximity:

This must include making some comparisons between a range of suitable location.

Government Policies:

How much tax will the business have to pay?
o…

Page 2

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Unit 3 ­ International Business
Unit 3.3.3 ­ How Does a Company Decide Which Countries to Target?
Assessment of a Country Markets
Roseanne Theyara

It may not be easy to find well-qualified lawyers who can help.
There is piracy in the US market place. This happens when competing producers
make…

Page 3

Preview of page 3
Unit 3 ­ International Business
Unit 3.3.3 ­ How Does a Company Decide Which Countries to Target?
Assessment of a Country Markets
Roseanne Theyara

There may be a trade off between paying low wages and recruiting people with the
necessary human capital.

Likely Return on Investment:

The size of the…

Page 4

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Unit 3 ­ International Business
Unit 3.3.3 ­ How Does a Company Decide Which Countries to Target?
Assessment of a Country Markets
Roseanne Theyara

Absolute Advantage:

Absolute advantage ­ Exists when a country is able to produce a good more cheaply
in absolute terms than another country.
Assumption:
o 2…

Page 5

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Unit 3 ­ International Business
Unit 3.3.3 ­ How Does a Company Decide Which Countries to Target?
Assessment of a Country Markets
Roseanne Theyara

o No transport costs.
o Resources are easily transferable.
o No trade barriers.
o No economies of scale.

Example -


Cost Per Unit in Worker Cost…

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