The two major economic factors that reflect a country's attractiveness as an export market are
A. industrial structure and income distribution
B. political stability and attitudes
C. cultural environment and government bureaucracy
D. joint venturing and direct investment
E. contract manufacturing and management contracting
Answer: (A) is the right choice because the industrial structure shapes a country's product and service needs, income, and employment levels. The income distribution determines if the income of the population in that country would create a market for the product. These things are economically important. Political stability and attitudes (B) and cultural environment And government bureaucracy (C) are not really economic factors that reflect the country's attractiveness. Rather, they are factors that are involved in the political-legal attractiveness of the country environmentally. (D) and (E) do not deal with why one does business in a foreign country; they are actually dealing with how one does business.