INTERNATIONAL MARKETING 6e Chapter 23 Newly Emerging Markets Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Copyright © 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Newly Emerging market economies There are large disparities in population size and GDP per capita the former eastern bloc countries Albania 1490 Bulgaria 8.2 4,100 Czech Republic 10.3 11,300 Hungary 10.2 7,400 Poland 38.6 6800 Romania 23.3 4.050 1464 4,000 Slovakia 8300 口 Population( millions)口 GDP per capita($) Copyright 2001 by Harcourt, Inc, All rights reserved
3.4 8.2 10.3 10.2 38.6 23.3 146.4 5.4 1,490 4,100 11,300 7,400 6,800 4,050 4,000 8,300 Albania Bulgaria Czech Republic Hungary Poland Romania Russia Slovakia Population (millions) GDP per capita ($)
A Brief historical review sLenin's Trade Decree of 1918 Formalized the Soviet foreign trade system as a state-controlled monopoly The system was subsequently adopted by ° Centra/ European sate∥ tes of the USSR People's Republic of china Centralized economic control (five-year plans Unlinked the market forces of demand and supply The lack of competition resulted in inefficiencies and the misallocation of resources Distribution channels were poorly developed Copyright 2001 by Harcourt, Inc, All rights reserved
State-controlled monopolies e International trade transactions were controlled and reviewed by Foreign trade organizations, ministries of trade and state committees The monopolies resulted in High leve/s of bureaucracies Low standards of living and per capita incomes Stagnant low-growth internal economies /solation from the Western economies Copyright 2001 by Harcourt, Inc, All rights reserved
The Shift of the 1980s Exporting outside of the communist bloc was encouraged and trade with the West was emphasized. Protection from international competition was removed as Western imports were allowed entry and foreign direct investment encouraged New Soviet political and economic programs Perestroika Glasnost Copyright 2001 by Harcourt, Inc, All rights reserved