Edexcel A-Level Business Theme 4.2 Global markets and business expansion overview quiz quiz

A saturated home market with little room left to grow

Access to a large, growing market with rising incomes abroad

Falling domestic demand that pushes the firm to look elsewhere

Intense competition at home squeezing the firm's margins

Paying a separate, unrelated firm to carry out the work instead

Selling shares in the company on a stock market based overseas

Relocating part of the firm's own operations to another country

Importing finished goods from abroad to sell in the home market

Moving the firm's own factory abroad to cut down its production costs

Issuing new shares to investors on an overseas stock exchange

Joining several countries together to build a new trading bloc

Paying another business to carry out work the firm could do itself

The level and growth of disposable income

The cost of hiring local labour in the country

The number of factories available to rent there

The cost of buying raw materials in that country

Simply how cheap the products on sale in that country happen to be

Regulation, bureaucracy, corruption and how simple it is to set up and trade

Only the exchange rate between the two countries' currencies and nothing else

Only the total size of the population, ignoring how the economy is actually run

Cheap labour always raises the quality of the goods that are produced

Labour cost is completely irrelevant when choosing where to produce

Low skills, poor infrastructure or distance can raise unit costs and risk

Producing where labour is cheapest always lets the firm avoid all tariffs

It raises the tariffs charged on the firm's goods

It removes the firm's need for any labour at all

It guarantees the firm large government grants

It avoids tariffs on goods sold within the bloc

Two firms setting up and sharing a new business for a specific purpose

One firm taking over another and absorbing it completely into itself

A loose alliance between firms that does not involve any shared business

Selling shares in the company to the general public for the first time

A guaranteed loss of all profit the moment the venture begins trading

Culture clashes, conflicting objectives and the partner becoming a rival

Having no access at all to the local partner's knowledge of the new market

Slower entry into the market than the firm would manage going it alone

Total control over every single decision made by the venture

No need to share any of the profit the venture goes on to earn

Access to a partner's local knowledge and shared cost and risk

Avoiding all cultural differences between the two markets entirely