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4.2 Buisness - Coggle Diagram
4.2 Buisness
assesement of a county as a production location
costs of production
skills and availability of labour
location in a trading bloc
government incentives
ease of doing business
developed infastructure
natural resourses
assessment of a country as a market
dispoosable income
ease of doing business
developed infastructure
politcal stability
stable exchange rate
conditions that prompt trade
push factors
market saturation
competition
shareholder pressure
pull factors
economies of scale
cost savings
acquiring brands and intellectual property
off shorring- moving manufacturing to a part of the world with lower production costs
benefits
lower wages
access to raw materails
access to a skilled work force
drawbacks
damage to reputation
as economies develop so do costs
cultural and language barriers
outscouring-moving a business function to a specialised provider in another country
benefits
allows the business to upgrade
takes advantage of a businesses comparative advantage
access specialist facilities without having to invest
drawbacks
reliance on third parties
language barriers
less flexible as tied into a contract
reasons for global mergers and joint ventures
reasons for
spread risk
global competitivness
securing recourses
gain access to intellectual property
entering new markets
acquiring International pantents
acquiring Internation brands
global competitvness
a range of factors determine how competitive a business is operating across the globe
exchange rate fluctuations
cost competiveness
skills shortages