Saturated markets at home, competition, need to extend the product life cycle
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What are pull factors?
Economies of scale, possibility of offshoring and outsourcing, risk spreading
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What factors need to be considered when assessing a country as a market?
Levels and growth of disposable income, ease of doing business, infrastructure, political stability, exchange rate
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What factors need to be considered when assessing a country as a production location?
Cost of production, skills and availability of labour force, infrastructure, location in trade bloc, government incentives, ease of doing business, political stability, natural resources, likely return on investment
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What are the reasons for global mergers or joint ventures?
Spreading risk over different countries, entering new markets, acquiring brand names, securing resources, maintaining/increasing global competitiveness
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How does a high exchange rate effect firms with a large export market?
Exporters lose competitiveness when their currency rises
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How does a high exchange rate effect firms with large imports?
Companies that import lots of goods will benefit from a stronger currency
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What is a cost leader?
A business that operates with the lowest average cost in its industry
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What strategies can be used to achieve cost leadership?
Raising productivity, outsourcing, offshoring
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Other than cost leadership what is another way to achieve a competitive advantage?
Product differentiation
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How can firms overcome skill shortages?
Offshoring, outsourcing, poaching
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Other cards in this set
Card 2
Front
What are pull factors?
Back
Economies of scale, possibility of offshoring and outsourcing, risk spreading
Card 3
Front
What factors need to be considered when assessing a country as a market?
Back
Card 4
Front
What factors need to be considered when assessing a country as a production location?
Back
Card 5
Front
What are the reasons for global mergers or joint ventures?
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