Assessment of a country as a market

Overview

Disposable income, ease of doing business, infrastructure, political stability and exchange rates, and how each affects the decision to enter.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Why are levels of disposable income important when assessing a country as a potential market?

   Model answer

   They indicate the purchasing power of consumers, which affects demand for products and services in that market.

2. 2

   What does growth in disposable income signal about a country's market potential?

   Model answer

   It signals whether consumer spending capacity is increasing or decreasing over time, indicating future market potential.

3. 3

   If a country experiences declining disposable income, what would this suggest about its attractiveness as a market?

   Model answer

   It suggests decreasing consumer spending capacity and reduced future market potential.

4. 4

   Define 'ease of doing business' in the context of market assessment.

   Model answer

   How straightforward it is to set up and operate a business in a country, including factors such as regulations, bureaucracy, and legal frameworks.

5. 5

   What is meant by infrastructure when evaluating a country as a market?

   Model answer

   The physical and organisational structures needed for business operations, including transport networks, telecommunications, energy supply, and digital connectivity.

6. 6

   Explain how poor infrastructure increases costs for businesses operating in a country.

   Model answer

   It creates difficulties in distribution, communication, and supply chain management, leading to increased costs and delays.

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