Competing Internationally Flashcards

All 12 cards in this deck

Give three ways a UK business can compete internationally.

Better designs; higher quality products; lower prices.

Give one drawback to a business of selling to overseas markets.

Any one of: it may not understand foreign customers, laws or culture, leading to costly mistakes; adapting and transporting products adds costs.

How can increased imports affect a UK business?

It faces more competition from overseas businesses, which may force it to lower prices or cut costs to stay competitive.

Give one benefit to a business of being able to export.

It can sell to more markets, building global brand awareness and generating higher revenue.

Give one benefit to a business of using e-commerce to compete internationally.

It gives a far wider range of customers access to its products worldwide, without a huge amount of investment.

Give one way a business might adapt its product to compete in an overseas market.

Any one of: different styles or sizing; colours to suit cultural beliefs; dietary requirements such as halal or kosher; left- or right-hand drive vehicles.

Give one reason a business must adapt its promotion for an overseas market.

Cultural and social differences and language mean adverts must be translated and messages changed to suit local customers.

Give one reason a business must adapt 'place' when selling in another country.

Any one of: internet access varies; local purchasing preferences differ; existing distribution links differ.

Give two factors that make a business change its price in different countries.

Any two of: income levels (disposable income); tax; the level of demand.

Give one benefit to a business of a strong international brand.

The brand is recognised worldwide, building customer trust and loyalty and giving a competitive advantage.

How can a business in a high-wage country keep its costs competitive with rivals in low-wage countries?

By using technology to raise productivity, so each worker produces more and the cost of making each product falls.

Give one advantage of taking over or partnering with a business already operating in a foreign market.

It already knows the local customers and the rules and regulations for doing business there.