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Global Marketing,8eWarren Keegan and Mark Green,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,#,Global Marketing,8eWarren Keegan and Mark Green,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,#,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,#,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,#,Global Marketing,8eWarren Keegan and Mark Green,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,#,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/3/20,2015 by Pearson Education,2-,#,Global Marketing,The Global Economic Environment,Chapter 2,2-,1,Global Marketing2-1,Introduction,This chapter includes:,An overview of the world economy,A survey of economic system types,The stages of market development,The balance of payments,2-,2,IntroductionThis chapter inclu,The World EconomyAn Overview,In the early 20,th,century economic integration was at 10%;today it is 50%,EU and NAFTA are very integrated,Global competitors have displaced or absorbed local ones,2-,3,The World EconomyAn Overview,The World EconomyAn Overview,The new realities:,Capital movements have replaced trade as the driving force of the world economy,Production has become uncoupled from employment,The world economy,not individual countries,is the dominating factor,2-,4,The World EconomyAn Overview,Zeroing in on Economic Systems,Globalization has made it harder to pigeonhole economies within the four-cell matrix,Also consider:,Type of economy:advanced industrial state,emerging or transition economy,or developing nation?,2-,5,Zeroing in on Economic Systems,Zeroing in on Economic Systems,Type of Government:Monarchy,dictatorship,tyrant?One-party system?Dominated by another state?Democracy?Terrorist?,Trade and capital flows:Free trade,part of trading bloc?Currency board or exchange controls?,The commanding heights:Transportation,communications&energy sectors.State,private,or mixed ownership?,2-,6,Zeroing in on Economic Systems,Zeroing in on Economic Systems,Services provided by the state or state funded:Pensions,health care,education.,Institutions:Country characterized by transparency,standards,absence of corruption?Standards ignored and court system compromised?,Markets:Entrepreneurial high risk/high reward?Socialized market?Government dominated price and wage controls?,2-,7,Zeroing in on Economic Systems,Market Capitalism,Individuals and firms allocate resources,Production resources are privately owned,Driven by consumers,Governments role is to promote competition among firms and ensure consumer protection,2-,8,Market CapitalismIndividuals a,Western Market Systems,2-,9,Western Market Systems2-9,Economic Freedom,Rankings of economic freedom among countries,“free”“mostly free”“mostly unfree”“repressed”,Variables considered include such things as:,Trade policy,Taxation policy,Capital flows and foreign investment,Banking policy,Wage and price controls,Property rights,Black market,2-,10,Economic FreedomRankings of ec,Economic Freedom2013 Rankings,Free,Hong Kong,Singapore,Australia,New Zealand,Switzerland,Canada,Chile,Mauritius,Denmark,United States,Repressed,Turkmenistan,Equatorial Guinea,Dem.Rep.Congo,Burma,Eritrea,Venezuela,Zimbabwe,Cuba,North Korea,Not ranked:Afghanistan,Iraq,Kosovo,Libya,Liechtenstein,Somalia,Sudan,Syria,2-,11,Economic Freedom2013 Ranking,Stages of Market Development,The World Bank has defined four categories of development using Gross National Income(GNI)as a base,BEMs,identified 10 years ago,were countries in Central Europe,Latin America,and Asia that were to have rapid economic growth,2-,12,Stages of Market DevelopmentTh,Low-Income Countries,GNP per capita of,$,1,025 or less,Characteristics,Limited industrialization,High percentage of population in farming,High birth rates,Low literacy rates,Heavy reliance on foreign aid,Political instability and unrest,Concentrated in Sub-Saharan Africa,2-,13,Low-Income CountriesGNP per ca,Lower-Middle-Income Countries,GNI per capita:$1,026 to$4,035,Characteristics,Rapidly expanding consumer markets,Cheap labor,Mature,standardized,labor-intensive industries like footwear,textiles and toys,50 bottom-ranked countries are LDCsleast developed countries,India is the only BRIC nation,2-,14,Lower-Middle-Income CountriesG,Upper-Middle-Income Countries,Also called industrializing or developing economies,Other countries:Malaysia,Chile,Venezuela,Mexico,GNP per capita:,$4,036,to$,12,475,Characteristics:,Rapidly industrializing,less agricultural employment,Increasing urbanization,Rising wages,High literacy rates and advanced education,Lower wage costs
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