mba 713 - chapter 02
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MBA 713 - Chapter 02TRANSCRIPT
Chapter 2 - 1
Chapter 2
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Global Marketplaces and Business Centers
Chapter 2 - 2
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 economy
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Chapter 2 - 3
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 countries
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The Marketplaces of North America
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Marketplace Overview
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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
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The United States
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World’s LargestEconomy
24% World’sGDP
PoliticalStability
Prime ExportMarket
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The U.S. Dollar
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Invoicing Currency
Flight Capital
Long-Term FDI
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Canada
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•34 Million People
•Major Exporter
•Natural Resources
•Trade with USA
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Advantages of Canada
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•Proximity to U.S. Market
•Political and Legal Stability
•Infrastructure and Education
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•Federal Government
•Open-Market System
•International Trade
Mexico
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Central America and the Caribbean
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Population of 83 Million
Total 2009 GDP $393 Billion
Significant Economic Challenges
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Summary of Discussion
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Chapter 2 - 13
The Marketplaces of Western Europe
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Chapter 2 - 14
The European Union
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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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Influential Members
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•Germany•France•Great Britain
Chapter 2 - 16Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Former Communist Countries in the EU
Czech Republic
Hungary
Poland
Slovakia
Romania
Estonia
Latvia
Lithuania
Bulgaria
Slovenia
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High Income• Iceland, Norway, Switzerland, Andorra,
Monaco, Croatia, and Liechtenstein
Middle Income• Albania, Bosnia-Herzegovina, Macedonia,
Kosovo, Montenegro, and Serbia
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Countries Not in the European Union
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Summary of Discussion
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Chapter 2 - 19
Marketplaces of Eastern Europe and Central Asia
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Chapter 2 - 20
Economics and Politics
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Union of Soviet Socialist Republics
Newly Independent States
Commonwealth of Independent States
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Russia
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•142 Million People•Natural Resources•Solid GDP Growth•Cash Reserves
Chapter 2 - 22Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Central Asian Republics
Common HeritageIndividual Countries
•Kazakhstan
•Uzbekistan
•Tajikistan
•Turkmenistan
•Kyrgyzstan
•Russian Influence
•Language and Religion
•Scarce Arable Land
•Low Per Capita Income
•Fossil Fuel Reserves
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Summary of Discussion
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Chapter 2 - 24
The Marketplaces of Asia
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Chapter 2 - 25Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Japan
•126 Million People
•$5.1 Trillion GDP
•MITI and Keiretsu
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Challenges for Japan
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• GDP Growth
• Trade Issues
• Demographics
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Australia and New Zealand
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Australia New Zealand
22 Million People
Sydney and Melbourne
Merchandise Exports = 17% of $925 Billion GDP in 2009
4.3 Million People
North and South Islands
Merchandise Trade = 20% of $126 Billion GDP in 2009
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The Four Tigers
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South Korea Taiwan
Singapore Hong Kong
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China
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1.3 Billion People
Communist Party
Market-Oriented Policies
Chapter 2 - 30Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Annual FDI Flows to China 1992 – 2009
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010102030405060708090
100110
Billio
ns o
f U.S
. Dol
lars
Chapter 2 - 31Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• 1 Billion People• British Influence• Global FDI• Solid GDP Growth
India
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• Thailand• Malaysia• Indonesia• Vietnam
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Southeast Asia
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Summary of Discussion
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Chapter 2 - 34
The Marketplaces of Africa and the Middle
East
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Chapter 2 - 35Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Africa• 1 Billion People
• Colonialism
• Commodities
• Agriculture
• South Africa
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Middle East
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“Life After Oil”
Petroleum Richness
Political Instability
Cradle of Civilization
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Summary of Discussion
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Chapter 2 - 38
The Marketplaces of South America
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Chapter 2 - 39Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
ImportSubstitution
ExportPromotion
Economic Policies
Chapter 2 - 40Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• Prices
• Exports
• Taxes
• Inflation
Problems with Import Substitution
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Current Situation
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Improved Business Climate
Lack of Social and Economic
Mobility
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Summary of Discussion
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Chapter 2 - 43
Chapter 2
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Global Marketplaces and Business Centers
Chapter 2 - 44Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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