Post on 14-Aug-2015
Chapter 2:Global Marketplaces and
Business CentersJulizaerma Mohamad Khudzari
Adapted from Griffin, International Business
Learning Objectives Review political and economic
traits of world’s various marketplaces that affect international business opportunities
Appreciate the uses of national income data in making business decisions
Discuss North America as a major marketplace and business center in the world economyChapter 2 - 2
Learning Objectives Describe Western Europe as a
major marketplace and business center in the world economy
Discuss Asia as a major marketplace and business center in the world economy
Assess development challenges facing African, Middle Eastern, and South American countriesChapter 2 - 3
2-4
Vital Information in International Business
Basic geographyMarket
characteristics
Culture Politics
Level and Areas of Economic Development Economic development refers to how well
a country is built up economically and how well it takes care of its citizens.
The level of economic development among nations can be divided into four main categories:1. Developed countries2. Newly industrialized countries3. Emerging countries
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Level and Areas of Economic Development
4. Least developed countries NIC: countries that derive their national
production and exports from industrial operations. – having considerable level of industrialization. Having developed from an agricultural economy to industrial economy
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The Marketplaces The Marketplaces of North Americaof North America
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Map: North America
Marketplace Overview
Chapter 2 - 9
CountryPopulation (millions)
2009 GDP (billions) GDP per capita
United States 307 $14,119 $47,240
Canada 34 $1,336 $42,170
Mexico 107 $874 $8,920
Caribbean 41 $259 $6,328
Central America 42 $134 $3,213
The United States
Chapter 2 - 10
World’s LargestEconomy
24% World’sGDP
PoliticalStability
Prime ExportMarket
The U.S. Dollar
Chapter 2 - 11
Invoicing Invoicing CurrencyCurrency
Flight CapitalFlight Capital
Long-Term FDILong-Term FDI
Canada
Chapter 2 - 12
•34 Million People
•Major Exporter
•Natural Resources
•Trade with USA
Advantages of Canada
Chapter 2 - 13
Chapter 2 - 14
•Federal Government
•Open-Market System
•International Trade
Mexico
Central America and the Caribbean
Chapter 2 - 15
Population of 83 Million
Total 2009 GDP $393 Billion
Significant Economic Challenges
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Central America and the Caribbean Economic development hindered
by Political instability Chronic U.S. military intervention Inadequate educational systems Weak middle class Poverty Import limitations
The Marketplaces of The Marketplaces of Western EuropeWestern Europe
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The European Union
Chapter 2 - 18
27 Member Countries $16.4 Trillion in GDP
Population of 499 Million Free Market Oriented
Parliamentary Democracy 17 Members Use Euro
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Euro Countries
Belgium France Luxembourg Germany Italy Netherlands
Ireland Greece Portugal Spain Austria Finland
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Map: Western Europe
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Map: Eastern Europe
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Marketplaces of Eastern Europe
Russia Estonia Latvia Lithuania Armenia
Belarus Georgia Moldova Ukraine Azerbaijan
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Map: Central Europe
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Marketplaces of Central Europe
Romania Bosnia-Herzegovina Croatia Macedonia Slovenia Serbia Montenegro
Albania Austria Bulgaria Czech Republic Slovak Republic Hungary Poland
Influential Members
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•GermanyGermany•FranceFrance•Great BritainGreat Britain
Chapter 2 - 26
Chapter 2 - 27
Countries Not in the European Union
Marketplaces of Eastern Marketplaces of Eastern Europe and Central AsiaEurope and Central Asia
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Economics and Politics
Chapter 2 - 29
Russia
Chapter 2 - 30
•142 Million People142 Million People•Natural ResourcesNatural Resources•Solid GDP GrowthSolid GDP Growth•Cash ReservesCash Reserves
Chapter 2 - 31
The Marketplaces of AsiaThe Marketplaces of Asia
Chapter 2 - 32
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Marketplaces of Asia
Japan Australia and New
Zealand The Four Tigers China
India Afghanistan and
Central Asian Republics
Southeast Asian Countries
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Map: Asia
Chapter 2 - 35
Japan
•126 Million People
•$5.1 Trillion GDP
•MITI and Keiretsu
Challenges for Japan
Chapter 2 - 36
GDP GrowthGDP GrowthTrade Issues Trade Issues DemographicsDemographics
Chapter 2 - 37
The Four Tigers
Chapter 2 - 38
South Korea Taiwan
Singapore Hong Kong
China
Chapter 2 - 39
1.3 Billion People1.3 Billion People
Communist PartyCommunist Party
Market-Oriented PoliciesMarket-Oriented Policies
Chapter 2 - 40
Annual FDI Flows to China 1992 – 2009
Chapter 2 - 41
1 Billion PeopleBritish InfluenceGlobal FDISolid GDP Growth
India
ThailandThailandMalaysiaMalaysiaIndonesiaIndonesiaVietnam Vietnam
Chapter 2 - 42
Southeast Asia
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Southeast Asian Countries
Low labor costs Significant FDI in recent years Continued recovery from currency
crisis in 1997 and 1998
The Marketplaces of Africa The Marketplaces of Africa and the Middle Eastand the Middle East
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Chapter 2 - 45
Africa
1 Billion People1 Billion PeopleColonialismColonialismCommoditiesCommoditiesAgricultureAgricultureSouth AfricaSouth Africa
Middle East
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“Life After Oil”
Petroleum Richness
Political Instability
Cradle of Civilizatio
n
2-47
Map : Australia and New Zealand
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Marketplaces of Africa and the Middle East
Africa 867 million
people 54 countries Major
economies: South Africa Ivory Coast Algeria Nigeria
Middle East Cradle of civilization Major economies:
Saudi Arabia Kuwait UAE
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Map : Africa and the Middle East
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Map: The Middle East
The Marketplaces of South The Marketplaces of South AmericaAmerica
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Marketplaces of South America
Brazil Bolivia Uruguay Argentina Chile
Colombia French Guiana Paraguay Peru Ecuador Venezuala
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Map: South America
Chapter 2 - 54
ImportImportSubstitutionSubstitution
ExportExportPromotionPromotion
Economic Policies
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PricesExportsTaxesInflation
Problems with Import Substitution
Current Situation
Chapter 2 - 56
Improved Business Climate
Lack of Social and Economic
Mobility
Summary of Discussion
Chapter 2 - 57