Factors for Introducing Digital Cameras to a New Market
Political
Digital cameras need to be introduced to the international market, and the following factors are considered: One of the critical aspects is the political system, since the state can influence the taxation system. The authorities intervene in trade, and depending on the system, may either control the economy or make it accessible and owned by entrepreneurs (Dunung, 2019).
Economic
The economic classification explains the effectiveness of business development in the selected territory in terms of the country’s market and the population’s purchasing power. Thus, consumer demand creates an opportunity for more profit. Additionally, trade blocs can liberalize trade and create more favorable conditions for alliance members.
GDP and GDP Per Capita
GDP indicates which products are more relevant to sell in a selected location. Purchasing power parity indicates the strength of a country’s economy, as reflected in its influence on exchange rates. Finally, GDP Per Capita reflects the population’s average income, which allows one to conclude which product in which price category will sell better. One of the essential factors in making business decisions is the country’s political system and its Gross Domestic Product (GDP). They primarily determine the vectors of the company’s development through legal regulation and explanation of the population’s purchasing power (Alvarado Lagunas, 2018).
Summary
Thus, entrepreneurs can understand the feasibility of a business within the capitalist system, where companies can develop freely. In addition, the country’s high GDP, robust economy, and average salary of the population, which enable people to purchase the things they want, are ideal points for entering the market.
Market Viability Review
- Democracy gives businesses the right to influence the market’s pricing policy.
- According to the economic classification of countries, the business may be limited by state regulations.
- Economic blocs encompass world powers and alliances, resulting in sustained economic growth.
- In terms of GDP, Germany is the most robust economy for business development, whereas Turkey may face challenges with sales.
- PPP in Mexico is high, so people may need more money to purchase. At the same time, Germany and Turkey have favorable currency exchange rates for business.
- GDP per capita is high in Germany and Turkey, which can be beneficial for businesses
Analysis of the Markets for Expansion
Germany
In connection with the analysis, the distribution of digital cameras in the Mexican, German, and Turkish markets is appropriate. The most suitable territorial expansion is Germany since the country’s people have a high GDP and GDP per capita. Their purchasing power covers a wide range of goods and services (Leipold & Petit-Boix, 2018).
A mixed economy in a democratic country allows for relatively free trade with some state influence. At the same time, economic blocs contribute to the distribution of goods within the European Union, as Germany is a member and an active participant. Accordingly, the sale of digital cameras in the country can be relevant, increasing the company’s profits and opening up opportunities for further growth and trade.
Turkey and Mexico
Turkey serves as a significant trading hub for many countries in the European and Asian sectors, which can impact the further distribution of goods (Esen & Gumuscu, 2018). Finally, the last country is Mexico, which needs improvement. Despite a strong GDP, the purchasing power of most residents is low, and the GDP per capita is $30,000 lower than that of Turkey. Thus, Germany is the best country for trading, while the Mexican market poses a risk to the company’s development.
References
Alvarado Lagunas, E., Dávila Aguirre, M. C., & Vázquez Zacarías, M. A. (2018). Factors that influence the continuity and survival of a micro-business in Mexico. Contaduría y Administración, 63(3), 1-17.
Dunung, S. P. (2019). Global Business Management. Boston, MA: FlatWorld.
Esen, B., & Gumuscu, S. (2018). Building a competitive authoritarian regime: State–business relations in the AKP’s Turkey. Journal of Balkan and Near Eastern Studies, 20(4), 349-372. Web.
GDP (current US$). (n.d.) The World Bank. Web.
GDP per capita, PPP (current international $). (n.d.). The World Bank. Web.
Government Type: Countries Compared. (n.d.). Nation Master. Web.
Leipold, S., & Petit-Boix, A. (2018). The circular economy and the bio-based sector-Perspectives of European and German stakeholders. Journal of Cleaner Production, 201, 1125-1137. Web.
Negotiations and agreements. (n.d). European Commission. Web.
The Investopedia team. (2022). Mixed economic system: Characteristics, examples, pros & cons. Investopedia. Web.