Tutorial 3 Case Study
EXERCISE THREE
Case Study – Market Potential
Question 1:
The country, Federal Republic of Armorika, is participating in today’s interlinked global economy as they are importing and exporting, where the exporting ($US 469.4 billion) is at a larger volume then importing ($US 400.3 billion). This is an advantage to the international business market as Armorika’s exports are exceeding imports meaning that their net exports figure is positive. Armorika not only has a steady inflow of funds in to the country it also can be said that due to the exporting, more factories and industrial facilities are needed, creating more jobs. Both these factors stimulate consumer spending and contribute to economic growth. In addition a GDP per capita of $US 45 010 shows that the country has a higher standard of living in comparison to other country’s GDP per capita data on The World Bank (2013). This allows entrants in to the market to identify that consumers have money to spend, leading to a steady economic growth.
The Federal Republic of Armorika’s urban/ rural population could potentially establish a firm backbone for an international business. The market is characterized by the large 95% ratio of urban population. Therefore conclusions can be made that Armorika offers a strong economic development and is rich in infrastructure, transportation and Internet to create a strong business market and improve efficiency of business, for example short delivery time. Furthermore, the population density of approximately 355 people per square km and the high urban development can lead to high urban agglomeration, which is critical for achieving sustained growth as large urban centers allow for innovation and increase economies of scale. Along with the urbanization and dense population the high adult literacy rate, 99%, makes it easier to promote products as you can put a cost saving billboard up and many people would be able to view it and understand.
According to United Nations
Case Study – Market Potential
Question 1:
The country, Federal Republic of Armorika, is participating in today’s interlinked global economy as they are importing and exporting, where the exporting ($US 469.4 billion) is at a larger volume then importing ($US 400.3 billion). This is an advantage to the international business market as Armorika’s exports are exceeding imports meaning that their net exports figure is positive. Armorika not only has a steady inflow of funds in to the country it also can be said that due to the exporting, more factories and industrial facilities are needed, creating more jobs. Both these factors stimulate consumer spending and contribute to economic growth. In addition a GDP per capita of $US 45 010 shows that the country has a higher standard of living in comparison to other country’s GDP per capita data on The World Bank (2013). This allows entrants in to the market to identify that consumers have money to spend, leading to a steady economic growth.
The Federal Republic of Armorika’s urban/ rural population could potentially establish a firm backbone for an international business. The market is characterized by the large 95% ratio of urban population. Therefore conclusions can be made that Armorika offers a strong economic development and is rich in infrastructure, transportation and Internet to create a strong business market and improve efficiency of business, for example short delivery time. Furthermore, the population density of approximately 355 people per square km and the high urban development can lead to high urban agglomeration, which is critical for achieving sustained growth as large urban centers allow for innovation and increase economies of scale. Along with the urbanization and dense population the high adult literacy rate, 99%, makes it easier to promote products as you can put a cost saving billboard up and many people would be able to view it and understand.
According to United Nations