1. Look at the following infographics
Think pair share:
Which country would be attractive and why?

2. Assessment of country markets
Topic 3
How does a company decide which countries to target?

3. Learning Objectives by the end of this lesson students at ….
Will be able to evaluate why certain factors attract a business to a country
Evaluation ~
GCE Grade A*
Will be able to propose countries that are attractive to businesses
Synthesis~
GCE Grade A
Will be able to analyse the factors that attract a business to a country
Analysis ~
GCE Grade B
Will be able to demonstrate understanding by using examples/cases
Application ~
GCE Grade C
Will be able to explain the attractiveness of some countries
Comprehension ~ GCE Grade D
Will be able to recall factors that make countries attractive
Knowledge ~
GCE Grade E 10 1

4. Success Criteria

5. Assessment of country markets
Size, economic growth and wealth are not the only important criteria
There are many important questions that must be researched

6. How well-developed is the country?
Human Development Index – useful as it ranks countries in relation to several aspects of development
It provides a measurement based on:
Health care (life expectancy)
Education (adult literacy rates, %ages of age groups enrolled in school)
National income (measured by GDP per capita)

7. Human Development Index
2 mins
Human Development Index
On your whiteboard write down:
Why do you think these issues will help decide on investing in that country?
Think pair share
Extension Task:
Any negative side to using this index as a measure?

8. How well-developed is the country?
A workforce with limited education and poor health care will not be attractive to potential employers
If small number of rich people and many poor people, it limits the markets for their products

9. How stable is the government?
Political instability can make some markets very unattractive
There is a trade off between risk and profitability
Businesses seek to develop relationships with politicians in order to reduce the risks

10. Is there a legal framework that will protect businesses?
Sometimes in place but not always
Some emerging economies have laws that enable businesses to go through courts to collect bad debts
Some economies, the legal system is slow
E.g. China does not have a reliable legal system, there are issues with counterfeiting products

11. Are there problematic government policies?
Government controls can be a problem for foreign businesses. The following need to be considered:
How much tax will the business have to pay?
Level and way collected can be different
Are there significant barriers to trade?
Some governments tax imports and restrict quantities
How difficult is it to start up a business?
Bureaucratic controls can be time consuming
How favourable is the exchange rate?
Undervalued exchange rate can be a problem with competition
Will there be government grants or subsidies available?
In the EU, these are regulated to ensure fairness

12. Cultural and media issues
Businesses need to understand local cultures
More is known now about how to adapt to host countries’ expectations
Learn from other businesses mistakes

13. The Labour market
How easy is it to recruit labour with appropriate skills for the technologies that will be used
A budget for training programmes will need to be considered
Trade offs considered between paying low wages and recruiting people with human capital

14. Corporate Policy
Businesses are different in the extent to which they want to expand abroad
Some want to expand to diversify to reduce risk
Some businesses are addicted to growth (Tesco)
Some expand to find new sources of resources (mining)
Lower costs abroad for production
Progress Arrow

15. Task

16. Watch the video
China, India and the rest of the developing world will eclipse the west in a dramatic shift in the balance of economic power over the next 50 years, according to research by the Organisation for Economic Co-operation and Development (OECD).
development/datablog/2012/nov/09/developing-economies-overtake-west oecd-forecasts

17. GDP growth across OECD
GDP growth for OECD countries predicted to 2050: how the rankings change

18. Corporate Policy Which countries would you target Why?
Use Diamond 9 to rank in order
Which to target 1st at top 1 2 3 4 5 6 7 8 9

19. Lesson Keywords Corporate policy The labour market Political stability
Human Development Index

20. Assessment of country markets
Exit pass
On your cards
Topic 3:
Assessment of country markets
Write down:
2 or more things you found easy to understand/ remember from the lesson
What did you find difficult to understand

21. Learning Objectives by the end of this lesson students at ….
Evaluation ~
GCE Grade A*
Will be able to evaluate why certain factors attract a business to a country
GCE Grade A
Synthesis~
Will be able to propose countries that are attractive to businesses
GCE Grade B
Analysis ~
Will be able to analyse the factors that attract a business to a country
GCE Grade C
Application ~
Will be able to demonstrate understanding by using examples/cases
Comprehension ~ GCE Grade D
Will be able to explain the attractiveness of some countries
GCE Grade E
Knowledge ~
Will be able to recall factors that make countries attractive 10 1

22. Success Criteria 