On day 27 of the Year 13 Recap we discuss the conditions that prompt business to trade with customers, suppliers and other business in different countries.
For many businesses there becomes a limit to just how far a business can progress within the realms of their own domestic customer base. Therefore, the easiest growth opportunities that a business can exploit in a globalised world is to expand into other international markets.
However, this trading model is only viable and desired by firms that have the business model to scale up and reap the benefits of trade. To assess the factors that influence a business’s decision to trade with the rest of the world we need to focus on the factors that encourage firms to move away from their domestic market (push factors), but also those factors that entice firms to move into a new lucrative market (pull factors). If you’re comfortable with a few of these factors, you will be able to give a nice nuanced response to the factors that drive international business expansion.
Here Jacob guides you through the trade revision slide: