1. Essay (10 points) When choosing a market for international expansion, we look at different variables to determine the market viability. When comparing GDP and GDP per capita, which metric gives us better information? Why? What other variables are important to consider?
Market viability in... View the full answer
- In order to determine market viability for international expansion one should conduct a market research, this will enable one to determine the size of the market the number and the type of consumers that exist in the market. One should also analyze the types of goods that are present in the market so as to look for new opportunities to search for a new product that is needed in the market. The number of competitors should be considered in order for one to improve on the quality of to be provided and this will also enable one to prepare for market entry and on how to make money in order to have protection. Determining the prices that prevail in the existing market is also important since this will enable one not to prices that higher than the existing one which may scare off consumers and investors. Conducting a SWOT analysis is also important since one is able to know the strengths weaknesses opportunities and threats, the weaknesses will enable to make an improvement. Determining the demand for the commodity in the market is very essential since one is able to know the highly demanded goods. One should also consider the number of imported goods that a country imports as this will make the market for domestic goods very weak. The taxes that are levied on goods may also prohibit a market from expanding and thus a person should determine the level of taxation provided so as to consider if one will earn any profit from conducting such a business. The willingness of the government to allow international expansion should also be considered since most government may prohibit market in their own country in order to avoid dumping. GDP per capita is a better metric because it provides a better determination of the standard of living in the country, GDP per capita takes into account what each individual earns in a particular country. One can consider variables such as income, level of employment, inflation rate, and level of poverty and the political stability of a country
- May 08, 2018 at 12:10am