WorldMarketplaces

World Marketplaces

• North America: U.S., Canada, Mexico, the countries of Central America

• US: 24% of world’s GDP, Exports are 12% of U.S. GDP, 133 of 500 of world’s largest MNCs

• Canada: Only 34 mil. People, but 80% of population in 100-mile band along southern border

• Mexico: Most populous Spanish-speaking nation, NAFTA & EU free trade agreements have brought many new factories

• Others: 83 mil people, but only $4B GDP (one quarter of Canada)

South America

• 13 countries with common political history.• Considerable economic & social problems• Chile is one of most free-market economies

in the world, Venezuela is the opposite.• Brazil has had fast growth and a rapidly

expanding middle class

World Marketplaces

• Western Europe• EU: 27 countries (17 use the Euro), 500 mil people, $16.4

trillion GDP, Germany world’s 4th largest economy, • UK/France/Spain/Italy are other major players• Newest members come from former Soviet Union• Iceland/Norway/ Switzerland are not EU.

World Marketplaces

• Eastern Europe• Russia: 9th largest population, GDP increasing

by 6%/year since 2000, 3rd largest currency reserves

• Other CIS states are much smaller markets

• Central Asia• Five republics with much in common. Muslim

faith is dominant, fossil fuels extensive

World Marketplaces

• Asian Kingpins• China: 1.3B people, communist but adopting market

policies, steady 10% growth, exploding FDI• India: 1B people, diverse sub-economies, cumbersome

bureaucracy, overburdened institutions• Japan: 126 mil people, $5.1 tril GDP. Keiretsu are

large families of interrelated companies, cross-ownership, slow growth

Southern Asia

• Four Tigers: South Korea, Taiwan, Singapore, Hong Kong. Rapid industrialization, massive exporting (half of GDP), high incomes.

• Southeast Asia: Mix of growth/risk, poverty/high-earners, stability/intermittent turmoil

• Aus/N.Z: Concentrated populations, agriculture & tourism, common culture

Africa• 1B people in 55 countries. $2 tril GDP all

together, mostly from South Africa, Nigeria, Egypt, & Algeria.

• Commodities boost some countries: Algeria, Angola, Libya, Nigeria, Zambia Botswana

• Many poor agricultural nations• South Africa may become a dominant force in

coming years owing to its minerals exports

Middle East

• Saudi Arabia has largest economy, $4B GDP• Israel highest income, $25K/year• Oil exports account for most of GDP in the petro-

states. Trying to diversify for “life after oil”• High cultural distance from U.S. deters initial

investments• Sovereign wealth funds invest abroad