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Comparison Between USAd Country A

680 Words3 Pages

From the data shown it is evident that for an International business, specialising in motorised road vehicles, looking to expand its global operations by choosing a new export market within the two countries, Country A is the more favourable option. Country B's GDP per capita is US $6,900, whereas country A has a GDP per capita of US $15,000 which is a very significant difference. A higher GDP per capita indicates a higher growth in the economy and reflects an increase in productivity and a higher spending power for a citizen, and for the company more ability to purchase their vehicles. Furthermore, Country A has a total land area of 8.52 million km^2 and with this area it would be more essential for the population to have access to personal …show more content…

By exporting and selling their goods through and affiliated firm in Country B it provides growth, increased profit and potential for future direct investment, while still being the simplest and low-risk method for the company. The largest sector within Country B is agriculture as 48% of the labour force is focused in the sector, compared to Country A where agriculture only takes up 10% of the labour force. Therefore, the data suggests that there is already a large market for the company, and since the company is marketing modern but affordable products they have the potential to replace outdated and equivalent equipment, further complementing the countries lower GDP Per Capita of only US$6,900. Furthermore, since one of Country B's main imports is Machinery and equipment its verifies that selling to country B would be the most economically reliable decision for the firm as there is already a developed market for the goods. Consequently, Country B's larger agriculture sector and its main imports being products which the firm is exporting, it would be the best choice out of the two countries to set up an intra-corporate transfer

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