Download EMERGING MARKETS: Business Opportunities for Kansas SME’s

EMERGING MARKETS: Business
Opportunities for Kansas SME’s
Southeast Kansas International Trade Symposium
Wednesday, April 18, 2012
Pittsburg State University
Pittsburg, Kansas
Presented by:
Dr. Raffaele DeVito
Professor of Management
Chair, International Trade Coordinating Council
School of Business
Emporia State University
Emerging Markets
• Definition:
– Countries experiencing accelerated economic growth
and industrialization
• BRICS Nations
Brazil
Russia
India
China
South Africa
Additional Emerging Nations
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Chile
Eastern Europe
Indonesia
Malaysia
Mexico
Turkey
United Arab Emerites
Other Markets to be Considered
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Bangladesh
Columbia
Egypt
Iran
Nigeria
Pakistan
Philippines
South Korea
Vietam
Global Market Opportunity Assessment
Variables
Definition
Market size
Proportion of the
country’s population
concentrated in urban
areas
20
• Urban Population
Market
Growth Rate
Pace of
industrialization and
economic
development
12
• Annual growth rate of
commercial energy use
• Real GDP growth Rate
Market
intensity
Buying power of the
country’s residents
14
• Per-capita gross national
income, based on
purchasing power parity
• Private consumption as a
percentage of GDP
Market
consumption
capacity
Size and growth rate
of the country’s
middle class
10
• Percentage share of middleclass income and
consumption
Source: International Business. Cavvsgil, Knight, Riesenberger 2008
Weight (out Example Measurement
of 100)
Indicators
Global Market Opportunity Assessment Cont.
Commercial
infrastructure
Ease of access
to marketing,
distribution,
and
communicatio
n channels
14
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Telephone mainlines (per 100 inhabitants)
Cellular mobile subscribers (per 100 inhabitants)
Paved road density
Internet hosts (per million people)
Population (per retail outlet)
Television sets (per capita)
Economic
freedom
Degree to
which the
country has
liberalized its
economy
10
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Trade and tax policies
Monetary and banking policies
Government consumption of economic output
Capital flows and foreign investment
Property rights
Extent of black market activity
Market
receptivity to
imports
Extent to
which the
country is
open to
imports
12
• Per capita imports
• Trade (as a percentage of GDP)
Country risk
Level of
political risk
8
• Country Risk Rating
Total
100
Source: International Business. Cavvsgil, Knight, Riesenberger 2008
FREE TRADE AGGREEMENT
• Percent of U.S. Exports 2010
– FTA Countries: 41%
– Non-FTA Countries: 59%
U.S. FTA Partner Countries
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Australia
Bahrain
Chile
DR-CAFTA:
– Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, & Nicaragua
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Israel
Jordan
Morocco
NAFTA:
– Canada & Mexico
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Oman
Peru
Singapore
Korea
Columbia – Pending
Panama – Pending