09 Which do you think are the two most important factors for Burnett to consider when deciding......[6]

[BASEL Moderator]

Burnett manufactures a range of sports shoes. The Operations Director is planning to increase the scale of production at its factory. She hopes it could lead to more than one economy of scale. The extra output would allow Burnett to export its shoes for the first time.

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09 Which do you think are the two most important factors for Burnett to consider when deciding whether to
export its products? Justify your choices. [6]

Possible KN Points:
• Foreign competition
• Size of overseas market
• Quality standards abroad
• Transport costs
• Barriers to trade
• Currency fluctuations/exchange rates
• Risk of non-payment by customers overseas
• Different tastes and customs

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