Global Markets and Business Expansion

What Global Markets and Business Expansion covers

Global markets and business expansion is the second section of Theme 4. It covers what pushes a business abroad and what pulls it, how it judges a country as somewhere to sell and somewhere to produce, the deals it strikes to get there, and what makes it competitive once it arrives.

The 5 subtopics

Each one has its own page.

• Conditions that prompt tradePush factors such as saturated domestic markets and competition, pull factors such as economies of scale and risk spreading, and off-shoring and outsourcing.Open →
• Assessment of a country as a marketDisposable income, ease of doing business, infrastructure, political stability and exchange rates, and how each affects the decision to enter.Open →
• Assessment of a country as a production locationCosts of production, skills and availability of labour, infrastructure, trade bloc membership, government incentives, ease of doing business, political stability, natural resources and likely return on investment, and how firms weigh these factors.Open →
• Reasons for global mergers or joint venturesSpreading risk, entering new markets, acquiring brands and intellectual property, securing supply, and reaching greater economies of scale.Open →
• Global competitivenessHow exchange rate movements and volatility change competitiveness, forward contracts, cost competitiveness against differentiation as routes to advantage abroad, and the effects of skill shortages and how businesses respond to them.Open →

What you need to know

Answer each one before you reveal it.

Take Global Markets and Business Expansion further

The same content, four other ways.

Questions from this topic

Each one with the model answer underneath.

1. 1

   What are push factors in the context of international trade?

   Model answer

   Conditions in the domestic market that encourage a business to seek international trade opportunities.

2. 2

   Define a saturated market.

   Model answer

   A market where demand for a product has reached its maximum in the domestic market, leaving little room for growth.

3. 3

   Explain how market saturation acts as a push factor for international trade.

   Model answer

   When domestic demand is maximised, businesses are forced to seek new customers in foreign markets where demand for their product still exists.

4. 4

   Why does intense domestic competition act as a push factor?

   Model answer

   It reduces profit margins and market share, prompting businesses to expand internationally to find less competitive markets.

5. 5

   A business finds its domestic market share declining due to new competitors. What type of factor is this, and what response might it prompt?

   Model answer

   This is a push factor; it may prompt the business to expand internationally to find markets with less competition.

6. 6

   What are pull factors in international trade?

   Model answer

   Attractive conditions in foreign markets that draw businesses towards international trade.

What is inside Levo

Six ways to work the same material.

Global Markets and Business Expansion revision questions

What does Global Markets and Business Expansion cover in Edexcel A-Level Business?

5 subtopics: conditions that prompt trade, assessment of a country as a market, assessment of a country as a production location, reasons for global mergers or joint ventures and global competitiveness. Each one has its own page with questions and model answers.

How is Global Markets and Business Expansion organised?

By the Edexcel 9BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.