Attractiveness of International Markets

• What is a key consideration for businesses expanding internationally?

  Attractiveness of the international market
• Why is the decision to enter international markets complex?

  It involves analyzing positive and negative factors
• What are the six factors to consider when entering international markets?

  1. Size of the market and growth
  2. Economic conditions
  3. Ease of doing business
  4. Political environment
  5. Exchange rates
  6. Domestic competition
  7. Infrastructure
• How does market size influence investment decisions in international markets?

  It justifies the investment and risk involved
• What economic indicators are important for assessing international markets?

  GDP and disposable income growth
• Which countries are mentioned as emerging economies?

  Mexico, Chile, and Malaysia
• Why are emerging economies attractive for international businesses?

  They experience faster economic growth rates
• What is the significance of the political environment in international markets?

  It affects legal reliability and intellectual property protection
• What can fluctuations in exchange rates impact for businesses?

  The value of profits sent back home
• How does domestic competition affect international market entry?

  It presents challenges and potential advantages for local firms
• What advantages might domestic competitors have in emerging markets?

  Better access to distribution channels and customer understanding
• What does infrastructure refer to in the context of international markets?

  Physical setup like transportation and data systems
• What are some aspects of infrastructure that businesses should consider?

  Transportation and broadband service availability
• What are the positive and negative factors businesses must analyze before entering international markets?

  • Positive factors:
  • Market size and growth potential
  • Economic conditions
  • Infrastructure quality
  • Negative factors:
  • Political instability
  • Domestic competition
  • Exchange rate fluctuations