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

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

Product life cycle - stages in order

• development, introduction, growth, maturity, decline

• development, introduction, maturity, growth, decline

• development, growth, decline, maturity, introduction,

• introduction, development, growth, maturity, decline

Offshoring or outsourcing can reduce costs, allowing a business to reduce prices and sell in more markets. They would be most likely to do this at which stage of the product life cycle?

• introduction

• growth

• maturity

• development

At the growth stage of the product life cycle expanding into new markets, and increasing output, will allow the business to exploit

• diseconomies of scale

• offshoring

• economies of scale

• pull factors