mba 713 - chapter 02
DESCRIPTION
MBA 713 - Chapter 02TRANSCRIPT
![Page 1: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/1.jpg)
Chapter 2 - 1
Chapter 2
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Global Marketplaces and Business Centers
![Page 2: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/2.jpg)
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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 3: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/3.jpg)
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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 4: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/4.jpg)
Chapter 2 - 4
The Marketplaces of North America
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 5: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/5.jpg)
Chapter 2 - 5
Marketplace Overview
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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
![Page 6: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/6.jpg)
Chapter 2 - 6
The United States
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
World’s LargestEconomy
24% World’sGDP
PoliticalStability
Prime ExportMarket
![Page 7: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/7.jpg)
Chapter 2 - 7
The U.S. Dollar
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Invoicing Currency
Flight Capital
Long-Term FDI
![Page 8: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/8.jpg)
Chapter 2 - 8
Canada
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•34 Million People
•Major Exporter
•Natural Resources
•Trade with USA
![Page 9: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/9.jpg)
Chapter 2 - 9
Advantages of Canada
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•Proximity to U.S. Market
•Political and Legal Stability
•Infrastructure and Education
![Page 10: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/10.jpg)
Chapter 2 - 10Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•Federal Government
•Open-Market System
•International Trade
Mexico
![Page 11: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/11.jpg)
Chapter 2 - 11
Central America and the Caribbean
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Population of 83 Million
Total 2009 GDP $393 Billion
Significant Economic Challenges
![Page 12: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/12.jpg)
Chapter 2 - 12
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 13: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/13.jpg)
Chapter 2 - 13
The Marketplaces of Western Europe
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 14: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/14.jpg)
Chapter 2 - 14
The European Union
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
27 Member Countries $16.4 Trillion in GDP
Population of 499 Million Free Market Oriented
Parliamentary Democracy 17 Members Use Euro
![Page 15: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/15.jpg)
Chapter 2 - 15
Influential Members
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•Germany•France•Great Britain
![Page 16: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/16.jpg)
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
![Page 17: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/17.jpg)
Chapter 2 - 17
High Income• Iceland, Norway, Switzerland, Andorra,
Monaco, Croatia, and Liechtenstein
Middle Income• Albania, Bosnia-Herzegovina, Macedonia,
Kosovo, Montenegro, and Serbia
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Countries Not in the European Union
![Page 18: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/18.jpg)
Chapter 2 - 18
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 19: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/19.jpg)
Chapter 2 - 19
Marketplaces of Eastern Europe and Central Asia
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 20: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/20.jpg)
Chapter 2 - 20
Economics and Politics
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Union of Soviet Socialist Republics
Newly Independent States
Commonwealth of Independent States
![Page 21: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/21.jpg)
Chapter 2 - 21
Russia
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•142 Million People•Natural Resources•Solid GDP Growth•Cash Reserves
![Page 22: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/22.jpg)
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
![Page 23: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/23.jpg)
Chapter 2 - 23
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 24: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/24.jpg)
Chapter 2 - 24
The Marketplaces of Asia
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 25: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/25.jpg)
Chapter 2 - 25Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Japan
•126 Million People
•$5.1 Trillion GDP
•MITI and Keiretsu
![Page 26: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/26.jpg)
Chapter 2 - 26
Challenges for Japan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• GDP Growth
• Trade Issues
• Demographics
![Page 27: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/27.jpg)
Chapter 2 - 27
Australia and New Zealand
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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
![Page 28: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/28.jpg)
Chapter 2 - 28
The Four Tigers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
South Korea Taiwan
Singapore Hong Kong
![Page 29: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/29.jpg)
Chapter 2 - 29
China
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
1.3 Billion People
Communist Party
Market-Oriented Policies
![Page 30: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/30.jpg)
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
![Page 31: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/31.jpg)
Chapter 2 - 31Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• 1 Billion People• British Influence• Global FDI• Solid GDP Growth
India
![Page 32: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/32.jpg)
Chapter 2 - 32
• Thailand• Malaysia• Indonesia• Vietnam
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Southeast Asia
![Page 33: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/33.jpg)
Chapter 2 - 33
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 34: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/34.jpg)
Chapter 2 - 34
The Marketplaces of Africa and the Middle
East
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 35: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/35.jpg)
Chapter 2 - 35Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Africa• 1 Billion People
• Colonialism
• Commodities
• Agriculture
• South Africa
![Page 36: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/36.jpg)
Chapter 2 - 36
Middle East
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
“Life After Oil”
Petroleum Richness
Political Instability
Cradle of Civilization
![Page 37: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/37.jpg)
Chapter 2 - 37
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 38: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/38.jpg)
Chapter 2 - 38
The Marketplaces of South America
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 39: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/39.jpg)
Chapter 2 - 39Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
ImportSubstitution
ExportPromotion
Economic Policies
![Page 40: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/40.jpg)
Chapter 2 - 40Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• Prices
• Exports
• Taxes
• Inflation
Problems with Import Substitution
![Page 41: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/41.jpg)
Chapter 2 - 41
Current Situation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Improved Business Climate
Lack of Social and Economic
Mobility
![Page 42: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/42.jpg)
Chapter 2 - 42
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
![Page 43: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/43.jpg)
Chapter 2 - 43
Chapter 2
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Global Marketplaces and Business Centers
![Page 44: MBA 713 - Chapter 02](https://reader033.vdocuments.us/reader033/viewer/2022052310/54c95a444a7959da3d8b457c/html5/thumbnails/44.jpg)
Chapter 2 - 44Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.