2. Why does a business seek international markets?
Topic 1
Product or market conditions that may prompt a business to trade internationally

3. Learning Objectives by the end of this lesson students at ….
Will be able to analyse the reasons for trading internationally
Analysis ~
GCE Grade B
Will be able to evaluate the impact of internationally trade on the business
Evaluation ~
GCE Grade A*
Will be able to propose reasons for trading internationally
Synthesis~
GCE Grade A
Will be able to demonstrate understanding by using examples/cases
Application ~
GCE Grade C
Will be able to explain the considerations of trading internationally
Comprehension ~ GCE Grade D
Will be able to recall reasons a business will trade internationally
Knowledge ~
GCE Grade E 10 1

4. Success Criteria

5. Why think about trading internationally?
Hard to expand market share in the UK
Market Saturation – impossible to expand sales further in that particular market

6. Conditions to prompt a business to trade internationally
2 mins
Conditions to prompt a business to trade internationally
On your whiteboard write down:
Product or market conditions that would prompt a business to trade internationally
Extension Task:
Are there examples that would be more costly than others?

7. Product or market conditions to prompt international trade
Extending the product life cycle
Selling product innovations in multiple (country) markets
Selling in new (country) markets due to domestic competition

8. Extending the Product Life cycle
Product Life cycle = phase which many products go through between their first introduction to the market and eventual decline in sales that may lead to production ceasing

9. Extending the Product Life cycle
Businesses work hard to maintain their market share
Staying competitive is hard
If the product has passed growth/maturity, businesses need to look at ways stop the product going into decline.

10. Extending the Product Life cycle
Extending the Product Life Cycle can help products from going into decline
Improvements or small changes in the product could help it keep its market
However, changes in tastes/fashions can lead to products in decline quickly.
New markets may provide sales growth that would be impossible to achieve in the domestic market through minor changes

11. Innovation
Innovation = new product development or an improvement in the design of an existing product
Some products are also replaced by improvements in technology/innovations e.g. computers/mobile phones
An international market increases the incentive to keep researching potential innovations and reduces risks
Sales may decline in one market but not likely to do so in all markets

12. Limits in the domestic market
Tesco
£1 in every £9 spent by consumers in the UK is spent at Tesco
Gives Tesco Market Penetration
Market Penetration = process of expanding market share so as to reach a larger number of customers
No longer able to expand in the UK, opening new stores in Japan, Thailand, Poland etc.

13. 2 mins Examples On your whiteboard write down:
Business example extending product life cycle
Business example of innovation
Business example of new market (country)
Extension Task:
Are there any examples of businesses using either mass or lean production?
Progress Arrow

14. Against The Clock
You have 5 minutes in groups (before the sand runs out!) to write on your whiteboards:
The different reasons a business will seek an international market
Now Feedback to class

15. Task

16. Task
List 10/20 items in your household that have not been made in Britain
Identify why each of these items has been made/bought abroad rather than in the UK
Progress Arrow

17. Possible reasons
Exchange rates, eg if the pound is relatively strong buying iPods in the USA proves to be very cheap
The growth of China as a manufacturer of cheap goods and clothing
The inability of the UK to grow agricultural products such as bananas and coffee
No barriers to trade with the European Union
Better quality goods abroad, eg German-made cars.

18. Homework

19. Plenary: Articulate!

20. Lesson Keywords
Product Lifecycle
Innovation
Market Penetration

21. Why does a business seek international markets?
Exit pass
On your cards
Topic 1:
Why does a business seek international markets?
Write down:
2 or more things you found easy to understand/ remember from the lesson
What did you find difficult to understand

22. Learning Objectives by the end of this lesson students at ….
GCE Grade B
Analysis ~
Will be able to analyse the reasons for trading internationally
Evaluation ~
GCE Grade A*
Will be able to evaluate the impact of internationally trade on the business
GCE Grade A
Synthesis~
Will be able to propose reasons for trading internationally
GCE Grade C
Application ~
Will be able to demonstrate understanding by using examples/cases
Comprehension ~ GCE Grade D
Will be able to explain the considerations of trading internationally
GCE Grade E
Knowledge ~
Will be able to recall reasons a business will trade internationally 10 1

23. Success Criteria 