4.2.2 Assessment of a country as a market

• Factors to consider before entering new countries

  • Ease of doing business
  • Levels & growth of disposable income
  • Exchange rates
  • Political Stability
  • Infrastructure
• Infrastructure

  considers factors such as roads, transportation and communication (mobile coverage/internet)

  • Good infrastructure improves the production process and delivery of goods and services to the customer, which reduces costs and increases sales.
• Ease of doing business


  Rules and regulations involved in establishing a business in a particular market may be relatively simple or hard.

  credit, enforcing contracts, registering properties

  If businesses face significant challenges - leads to delays in operations and business generating sales
• Levels of growth and disposable income

  • selling products in a country with higher disposable income leads to more sales.
  • Selling in a country with lower disposable income leads to decreased/slower growth in sales

  • Businesses should look at trends in income levels over time to see if there is potential growth in sales in the future 
• Exchange rates

  • Subject to fluctuations due to external factors
  • Business should look at the historical trend of currency in the country
  • Businesses moving to countries with stronger currencies can import raw materials and components for production at a lower price
  • Exports from this country will be more expensive to customers abroad 
• Political Stability

  Businesses may be at risk of not gaining a return on their investment in a country with political instability.

  Country with political instability will be subject to corruption, lack of law enforcement and higher levels of crime.

  More likely to have disruption to trading.
• • An economy with a stable economy and government is seen as a less risky investment for business