FEATURES OF INTERNATIONAL MARKET Lesson Note
Learning objectives
This SS3 Marketing lesson note covers FEATURES OF INTERNATIONAL MARKET for First Term, Week 5.
Lesson Note
Learning objectives
At the end of the lesson, students should be able to:
Explain the features of an international market.
Identify the major features of an international market.
Distinguish between the advantages and disadvantages of an international market.
MEANING OF INTERNATIONAL MARKET
An international market is a market where goods and services are bought and sold between people, businesses or countries in different parts of the world.
Example: A Nigerian business selling goods to customers in Ghana or the United Kingdom.
FEATURES OF INTERNATIONAL MARKET
Involves different countries: Buying and selling takes place between two or more countries.
Uses foreign currencies: Different countries may use different currencies when trading.
Large market: It provides access to many customers around the world.
Long-distance trade: Goods may travel long distances before reaching the buyers.
Different languages and cultures: Businesses deal with people from different cultural and language backgrounds.
Government regulations: International trade is affected by the laws and regulations of different countries.
Use of different means of transportation: Goods may be moved by ships, aeroplanes, trains or trucks.
ADVANTAGES OF INTERNATIONAL MARKET
Larger number of customers: Businesses can sell to customers in different countries.
Increased sales: More customers can lead to higher sales.
Higher profit: Increased sales may result in more profit.
Business expansion: Businesses can grow beyond their home country.
Access to new markets: Businesses can find new places to sell their products.
Encourages foreign exchange earnings: Countries can earn foreign currency from exports.
DISADVANTAGES OF INTERNATIONAL MARKET
High transportation cost: Moving goods over long distances can be expensive.
Language barriers: Different languages can make communication difficult.
Different laws: Businesses must obey the laws of different countries.
Currency problems: Changes in exchange rates can affect the value of money.
Strong competition: Businesses may face competitors from many countries.
Risk of loss: Goods may be damaged, delayed or lost during transportation.
DIFFERENCE BETWEEN ADVANTAGES AND DISADVANTAGES
| Advantages | Disadvantages |
|---|---|
| Provides more customers | High transportation cost |
| Increases sales | Language barriers |
| Can increase profit | Currency problems |
| Helps business expansion | Strong competition |
| Gives access to new markets | Different laws and regulations |
Evaluation
OBJECTIVE QUESTIONS
An international market involves buying and selling between ______. A. members of one family B. different countries C. people in one street D. neighbours
One feature of an international market is the use of ______ currencies. A. foreign B. local only C. school D. common
An international market provides access to a ______ number of customers. A. smaller B. larger C. fixed D. limited
Which of these is an advantage of international trade? A. High transportation cost B. Increased sales C. Language barrier D. Currency problems
Which of these is a disadvantage of an international market? A. More customers B. Business expansion C. High transportation cost D. Increased sales
International trade may involve goods travelling ______ distances. A. short B. long C. no D. fixed
Businesses in international markets may face competitors from ______ countries. A. many B. one C. no D. their family
Which of these can make communication difficult in international markets? A. Language differences B. More customers C. Increased sales D. Higher profit
A change in the value of currencies is known as an ______ rate problem. A. exchange B. transport C. market D. production
International markets can help a business to ______ beyond its home country. A. expand B. stop C. reduce D. close
Theory Questions
1a. What is an international market?
1b. Mention five features of an international market.
1c. State four advantages of an international market.
2a. State four disadvantages of an international market.
2b. Give two differences between the advantages and disadvantages of an international market.