Asked by Keely Messer on Apr 30, 2024
Verified
What is meant by the term economic infrastructure and how can this affect a firm's plans to enter a global market?
Economic Infrastructure
The underlying foundation of the economy consisting of physical systems like transportation, communication, and utilities that enable economic activities.
Global Market
The international trading environment in which goods, services, currencies, and cultural products are exchanged across borders.
- Understand the concept of economic infrastructure and its impact on global market entry.
Verified Answer
BP
Breanna PursellMay 01, 2024
Final Answer :
Economic infrastructure is a country's communication, transportation, financial, and distribution systems. This represents a critical consideration in a company's determination of whether it should try to market to a country's consumers and organizations. You might have the best product in the world, but if you are not able to physically reach your customer because the rains have washed away the roads, you will not be successful. Communication infrastructures in countries differ. In developing countries, they may be limited or antiquated compared with that of developed countries. Similarly, if the financial payment systems aren't developed (consumers lack credit cards; pay only in cash), exchange relationships may be more limited.
Learning Objectives
- Understand the concept of economic infrastructure and its impact on global market entry.