IPA IP 2023 Question 3
A question IPA Japan published in 令和5年度 ITパスポート試験 公開問題 問3, translated into English. ITPEC is based on the same exams.
Which of the following is the most appropriate term that represents the economic effect that foreigners who visit Japan for sightseeing and other purposes bring to the country?
Explanation
Inbound demand — the spending that foreign visitors bring into the country they visit.
Inbound means travel into a country, outbound travel out of it. Inbound demand is the demand that foreign tourists and business visitors create for lodging, transport, food, shopping and other services while they are in the country, so it adds to that country's economy. Japan counts it as an export of services, and companies target it with tax-free shopping, multilingual signs and cashless payment.
Answer (d)
Why not others:
- •(a) Outsourcing — contracting out a company's work to an external provider; nothing to do with visitors
- •(b) Outbound demand — the opposite direction: demand created by a country's own residents travelling abroad, which is spent in other countries
- •(c) Incubator — an organization or facility that supports start-ups with office space, advice and funding
Key rule: Inbound = coming into the country (foreign visitors spending here); outbound = going out of it (residents spending abroad).
Business Strategy Management · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.