9.3a Internationalisation

Question 1

International market definition

Answer 1

Any place where a firm attempts to sell products outside its geographical base.

Question 2

Reasons to go international:

Answer 2

• Wider customer base
• Can extend product life cycle
• Benefit from emerging markets

Question 3

How a business benefits from international markets (analysis):

Answer 3

• Spreads risk
• Benefits from economies of scale and scope
• Increased competition and efficiency

Question 4

How to choose the right market:

Answer 4

• Size of market and potential to grow
• Accessibility
• Compatibility - does the product fit in with the culture?

Question 5

Factors that may make a market inaccessible:

Answer 5

• Trade agreements
• Wars and political situations
• Customers may be inaccessible as they live in remote rural areas