Презентация, доклад lnternational Marketing lnternational Marketing Chapter 3 The Global Economic Environment

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lnternational Marketing lnternational Marketing Chapter 3 The Global Economic Environment

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The economic environment The economic environment Regional economic

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A. The Economic environment Economic environment is major determinant of global market potential & opportunity. The global economic environment plays a large role in the development of new markets for organizations.

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Economic factors The World Economy It refers to the economy of the world, comprising of different economies of individual countries, with each economy related with the other in one way or another. In the past years the global economy has changed rapidly. Particularly marked has been the development of world economic integration and standardised products.

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The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

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"Improve the State of the World: "Improve the State of the World: Rethink, Redesign, Rebuild"

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Li ke qiang stated China's policies on increasing domestic demand, readjusting economic structure Li ke qiang stated China's policies on increasing domestic demand, readjusting economic structure and transforming the economic growth pattern. As a responsible big developing country, China will remain steadfast on the path of peaceful development and work with other countries in a joint endeavor to build a harmonious world of enduring peace and common prosperity.

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2. Economic systems 2. Economic systems Foreign countries often will have different economic systems from the domestic market and adjustments often need to be made to take these differences into account. 3 main types of economic systems: Market economy(Capitalist) Planned economy(Socialist) Mixed economy(Mixed)

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Market economy(Capitalist) Market economy(Capitalist) A country may operate in a market economy where private individuals own most of the property and operate most of the businesses. A market economy is usually the best economic environment for a foreign business because of the protection of private property and contract rights.

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The essential feature of a market economy is the total freedom of individuals and businesses to choose from between an array of goods and services according to their tastes and preferences. The essential feature of a market economy is the total freedom of individuals and businesses to choose from between an array of goods and services according to their tastes and preferences. The decisions of what to produce, whom to produce for in a world of limited resources, are addressed by the forces of the market, namely the supply and demand of a particular commodity in question.

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Planned economy(Socialist) Planned economy(Socialist) The state controls macro-economic policy and entrepreneurial activity.In other words, there is state control of the factors of production and centralized, state planning—what to produce, how to produce it, and who to produce it for—but with some freedom for individual decisions, like which job to take. Operating businesses in this environment will be more difficult

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Mixed economy(Mixed) Mixed economy(Mixed) A degree of private economic freedom mixed with a degree of government regulation of markets. Most mixed economy can be described as market economy with strong regulatory oversight, in addition to having a variety of government-sponsored aspects.

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3. Stages of Economic Development 3. Stages of Economic Development High-Income Countries Upper-Middle-Income Countries Lower-Middle-Income Countries Low-Income Countries

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High-Income Countries High-Income Countries GNP per capita above $9,656 Importance of service sector, information processing and exchange, and intellectual technology Knowledge as key strategic resource Orientation toward the future

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Upper-Middle-Income Countries Upper-Middle-Income Countries GNP per capita between $3,126 to $9,655 Rapidly industrializing Rising wages High rates of literacy and advanced education Lower wage costs than advanced countries Argentina, Brazil, Mexico, South Africa

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Lower-Middle-Income Countries Lower-Middle-Income Countries GNP per capita between $786 and $3,125 Early stages of industrialization Cheap labor markets Factories supply items such as clothing, tires, building materials, and packaged foods Poland, Turkey, Indonesia

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Low-Income Countries Low-Income Countries GNP per capita of $785 or less Limited industrialization High percentage of population involved in farming High birth rates Low literacy rates Heavy reliance on foreign aid Political instability and unrest

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High Upper-middle Lower-middle low Canada Brazil Cuba Finland Ukraine Nepal China Thailand


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