Download High Income Countries

Chapter 2:
Global
Marketplaces
and
Business
Centers
International Business, 4th Edition
Griffin & Pustay
2-1
©2004 Prentice Hall
Chapter Objectives_1
 Evaluate the impact of the political and
economic characteristics of the world’s
various marketplaces on business
 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
1-2
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Chapter Objectives_2
 Describe Western Europe as a major
marketplace and business center in the
world economy
 Discuss the problems facing the
economies of the former communist
countries of Eastern and Central
Europe
1-3
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Chapter Objectives_3
 Discuss Asia as a major marketplace
and business center in the world
economy
 Assess the development challenges
facing African, Middle Eastern, and
South American countries
1-4
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Vital Information in
International Business
 Basic geography
 Market characteristics
 Culture
 Politics
1-5
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World Economic Activity
 Triad
– Japan
– European Union
– United States
 Quad
– Triad
– Canada
1-6
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Figure 2.1 Shares of World’s GDP, 1970
Rest of world
28%
European
Union
26%
1-7
United States
36%
Canada
3%
United States
Canada
Japan
European Union
Rest of world
Japan
7%
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Figure 2.1 Shares of World’s GDP, 2001
Rest of world
27%
United States
32%
United States
Canada
Japan
European Union
Rest of world
Canada
2%
European Union
25%
1-8
Japan
14%
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Classifying Countries by Income Levels
1-9
High Income Countries
$9,206+ annual
per capita
income
Middle Income Countries
$745 - $9,206 annual
per capita
income
Lower Income Countries
$725 or less annual
per capita
income
Least Developed
Low literacy rates,
Low per capita income
Lack of infrastructure
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High Income Countries
Cluster 1:
OECD member countries
Cluster 2:
Kuwait and
United Arab Emirates
Cluster 3:
Hong Kong, Israel,
Singapore, Taiwan
1-10
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1-11
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Marketplaces of North America
 United States
 Canada
 Mexico
 Greenland
 Central America
 Caribbean islands
1-12
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Map 2.1 North America
1-13
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United States
 3rd largest population in world
 4th largest land mass
 Largest economy
 2001 GDP: $10.2 trillion
 Prime market for lower-income
countries trying to raise standards of
living through exports
1-14
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1-15
Rest of world
Spain
Australia
Italy
Netherlands
Switzerland
South Korea
China
Canada
Germany
United Kingdom
France
Japan
United States
# of corporations
Figure 2.2 Headquarters of World’s
Largest Corporations in 2000 by Country
200
180
160
140
120
100
80
60
40
20
0
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Canada
 2nd largest land mass
 80% of population concentrated in a
100-mile band along U.S./ Canadian
border
 Rich natural resources
 Trade with U.S. - single largest
bilateral trade relationship in world
1-16
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Advantages of Canada
 Proximity to U.S. market
 Stability of legal and political systems
 Excellent infrastructure and
educational systems
1-17
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Mexico
 Largest Spanish-speaking nation
 Federal government system
 Participant in NAFTA along with U.S.
and Canada
1-18
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Central America and Caribbean
 Population collectively of 74 million
 Total GDP of $199 billion
 Economic development hindered
– Political instability
– Chronic U.S. military intervention
– Inadequate educational systems
– Import limitations
1-19
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Marketplaces of Western Europe
 Group 1: European Union (EU)
member countries
 Group 2: Other countries in region
1-20
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Map 2.2 Western Europe
1-21
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Marketplaces of
Eastern and Central Europe
 Central Europe
–
–
–
–
–
–
–
–
1-22
Albania
Austria
Bulgaria
Czech Republic
Slovak Republic
Hungary
Poland
Romania
–
–
–
–
–
–
Bosnia-Herzegovina
Croatia
Macedonia
Slovenia
Serbia
Montenegro
 Eastern Europe
– 15 countries resulting
from disintegration of
Soviet Union
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Map 2.3 Eastern Europe
1-23
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Map 2.4 Central Europe
1-24
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Marketplaces of Asia







1-25
Japan
Australia and New Zealand
The Four Tigers
China
India
Afghanistan and Central Asian Republics
Southeast Asian Countries
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The Four Tigers
 South Korea
 Taiwan
 Singapore
 Hong Kong
1-26
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Map 2.5 Asia
1-27
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Map 2.6 Australia and New Zealand
1-28
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Marketplaces of Africa
and the Middle East
 Africa
– 815 million people
– 54 countries
 Middle East
– Cradle of civilization
1-29
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Map 2.7
Africa
and the
Middle East
1-30
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1-31
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Map 2.9
South America
1-32
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