2-1 chapter 2 international business, 6th edition griffin & pustay global marketplaces and...
TRANSCRIPT
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chapter 2
International Business, 6th E
dition
Griffin & Pustay
Global Marketplaces and Business Centers
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2-2
Chapter Objectives
• 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
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Chapter Objectives (continued)
• Describe Western Europe as a major marketplace and business center in the world
• 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
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The World Economy
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Marketplaces of North America
• United States
• Canada
• Mexico
• Greenland
• Countries of Central America and the Caribbean
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United States
• Third largest population in world
• Fourth largest land mass
• Largest economy
• 27 percent of world’s GDP in 2006
• Prime market for exports
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The U.S. Dollar
Invoicingcurrency
Flightcapital
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Canada
• Second largest land mass
• 80 percent of population concentrated along U.S./Canadian border
• Rich natural resources
• Trade with U.S. - single largest bilateral trade relationship in the world
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Advantages of Canada
• Proximity to U.S. market
• Stability of legal and political systems
• Excellent infrastructure and educational systems
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Map 2.1 North America
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Figure 2.2 Headquarters of World’s Largest Corporations in 2007 by Country
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Mexico
• Largest Spanish-speaking nation
• Federal government system
• Participant in NAFTA along with U.S. and Canada
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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
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Marketplaces of Western Europe
European Union Member Countries
Other Countries in Western Europe
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Map 2.2 Western Europe
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Euro Countries
• Belgium
• France
• Luxembourg
• Germany
• Italy
• Netherlands
• Ireland
• Greece
• Portugal
• Spain
• Austria
• Finland
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Marketplaces of Eastern Europe
• Russia
• Estonia
• Latvia
• Lithuania
• Armenia
• Belarus
• Georgia
• Moldova
• Ukraine
• Azerbaijan
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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
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Map 2.3 The Former Soviet Union
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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 2.4 Asia
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Japan
• Second largest economy
• GDP of $4.3 trillion in 2006
• Industries controlled by keiretsu
• GDP growth rate of 1.6 percent (since 2000)
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Map 2.5 Australia and New Zealand
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The Four Tigers
South Korea Taiwan
Singapore Hong Kong
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China
• World’s most populous country –
approximately 1.3 billion people
• Communist ideology mixed with market-oriented economic policies
• Heavy FDI
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Figure 2.3 Annual FDI Flows to China 1982-2006
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India
• World’s second most populous country
• Per capita GDP of $820
• British colony until 1947
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Southeast Asian Countries
• Thailand, Malaysia, and Indonesia
• Low labor costs
• Significant FDI in recent years
• Continued recovery from currency crisis in 1997 and 1998
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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 2.6 Africa and the Middle East
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Map 2.7 The Middle East
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Marketplaces of South America
• Brazil
• Bolivia
• Uruguay
• Argentina
• Chile
• Colombia
• French Guiana
• Paraguay
• Peru
• Ecuador
• Venezuela
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Map 2.8 South America
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