Conditions that Prompt Trade

A push factor is

• Something positive about the market that the business is currently in

• Something negative about the market that the business is currently in

• Something negative about the market that the business is planning to move into

• Something positive about the market that the business is planning to move into

Which of the following is not a push factor

• Competition

• Market saturation

• Economies of scale

• Excessive regulation

Dyson chose to move its headquarters to Malaysia for a range of reasons, which could all be described as push factors - which of the following is not a push factor

• Higher labour costs in UK

• A strong £ made exports expensive

• Difficulties with planning permission when expanding in UK

• A large emerging market to sell into in Malaysia

A pull factor is

• a negative about the existing market

• a positive about the existing market

• a negative about the intended new market

• a positive about the intended market

Which of the following is not a pull factor?

• Opportunities to exploit economies of scale

• The ability to spread risk

• New markets to sell into

• Excessive regulation in the current market

When a business pays another business to produce goods or services on its behalf:

• outsourcing

• off shoring

When a business sets up production sites in lower labour cost countries, moving jobs overseas

• off shoring

• outsourcing

Which of these is not a problem of offshoring

• harder to communicate

• reputation falls

• lower labour costs

• harder to manage quality and ethical behaviour

The transfering of work from a specific area of the company ( e.g. accounting, manufacturing) to an outside supplier, which can be done to a company that is located in the home country or anywhere else is called______.

• Offshoring

• Outsourcing

• Globalization

A planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient is called____________.

• layoff

• unemployment

• downsizing