Conditions that prompt trade
This push factor occurs when most of the customers who would buy a particular product already have it, so there is limited remaining opportunity for growth.
What is a saturated market? 223
The amount of income customers have left to spend after paying bills is known as this.
What is disposable income?231
Low wages, affordable raw materials and cheap energy contribute to lower this.
What are costs of production?240
a long term co-operative relationship
What is a franchising?250
when a nations currency gets stronger
What is appreciation?258
Expanding into foreign markets to reach new customers and increase revenue is an example of this type of factor.
What is a pull factor? 224
A country with strong transportation and communication systems is said to have strong this.
What is infrastructure?233
The size and skill level of the workforce in a country relates to this factor.
What is labour availability and skill?241
where two or more businesses from different countries join together and operate as one
What is a global merger?256
when a nations currency becomes weaker
What is depreciation?259
Moving part of production overseas to reduce cost by using foreign labour is known as this.
What is offshoring?225
Stability in government and laws, reducing investment risks, is referred to as this.
What is political stability?233
Belonging to the EU, ASEAN, USMCA or similar groups gives businesses tariff-free access due to this benefit.
What is location in a trade bloc?243
When two firms work together on a shared project while keeping separate identities.
What is a joint venture?256
the risk that future cash flows will change due to unexpected exchange rate changes
What is economic risk? 263
Hiring outside firms to handle activities like customer service or delivery represents this strategy.
What is outsourcing?225
to remove the value of a note or coin so that is no longer able to be used as money.
What is demonetisation?236
Tax breaks, grants or land subsidies offered by a government to attract investment are known as these.
What are government incentives?243.
Companies may merge to reduce competition or gain benefits from producing more, known as this concept.
What are economies of scale?251
A business contract used to counter fluctuations in the exchange rate.
What is a fixed contract?260
Updating products, changing packaging or targeting new markets are ways businesses try to achieve this.
What is product life cycle extension?226
What is exchange rate?234
$500made from setting up production abroad will outweigh the cost of doing so.
What is likely return on investment?246
$500access supply chains, local expertise, or legal market entry. This is done to gain what key advantage?
What is increased global competitiveness?253
A lack of trained employees reduces innovation and efficiency and weakens international competitiveness.
What are skill shortages?261-262