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Alex and Nat design and sell clothes for women - HSC - SSCE Business Studies - Question 22 - 2007 - Paper 1
Question 22
Alex and Nat design and sell clothes for women. They have been selling nationally and have now decided to sell overseas. (a) Describe ONE social or cultural influen... show full transcript
Worked Solution & Example Answer:Alex and Nat design and sell clothes for women - HSC - SSCE Business Studies - Question 22 - 2007 - Paper 1
Step 1
Describe ONE social or cultural influence Alex and Nat need to consider to sell their clothes overseas.
Answer
When Alex and Nat decide to sell their clothes overseas, they need to consider the differences in cultural preferences and fashion trends of the new markets. For example, certain colors or patterns may have different meanings in various cultures, which could affect customer attraction and sales. Understanding these cultural nuances will help them create a product line that resonates with potential customers.
Step 2
Describe TWO aspects of financial management Alex and Nat need to consider for their global business.
Answer
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Methods of Payment: Alex and Nat should consider the preferred payment methods in their target markets, such as credit cards, PayPal, or local payment systems. Adapting to these options can enhance customer satisfaction and streamline transactions.
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Credit Risks: They also need to assess the credit risks involved in international transactions. This includes evaluating the creditworthiness of overseas customers and understanding the implications of currency fluctuations, which can affect pricing and profitability.