INTERNATIONAL MARKETING Chapter 4 The Economic Environment
The Economic Environment Chapter 4 INTERNATIONAL MARKETING
The Foreign Market Environment Group of five ■ Group of ten ■ United states The Group of Seven Britain plus ■ france Sweden 1 Germany the netherlands jApan ■ Group of seven The group of five, plus ■ Italy ■ Canada
The Foreign Market Environment ◼ Group of Five ◼ United States ◼ Britain ◼ France ◼ Germany ◼ Japan ◼ Group of Seven ◼ The Group of Five, plus ◼ Italy ◼ Canada ◼ Group of Ten ◼ The Group of Seven, plus ◼ Sweden ◼ the Netherlands ◼ Belgium
Market Characteristics Population demographics Age distribution, life expectancies household size. urbanization Income Distribution of low, medium, and high incomes Gross domestic product per capita Purchasing power parity a Consumption patterns Income spent on necessities and luxuries Product saturation or diffusion Product form differences
Market Characteristics ◼ Population demographics ◼ Age distribution, life expectancies, household size, urbanization ◼ Income ◼ Distribution of low, medium, and high incomes ◼ Gross domestic product per capita ◼ Purchasing power parity ◼ Consumption patterns ◼ Income spent on necessities and luxuries ◼ Product saturation or diffusion ◼ Product form differences
Market Characteristics continued Availability and quality of infrastructure Rail traffic networks for distribution capabilities Communication systems for marketing Energy(electrical and fuel)consumption ■上 oreign involvement in the economy Degree of foreign direct investment in country or in a specific industry Rules governing foreign investment a Impact of the economic environment on social development Urbanization, life expectancy, literacy rates, etc Physical Quality of Life Index Poli
Market Characteristics… continued ◼ Availability and quality of infrastructure ◼ Rail traffic networks for distribution capabilities ◼ Communication systems for marketing ◼ Energy (electrical and fuel) consumption ◼ Foreign involvement in the economy ◼ Degree of foreign direct investment in country or in a specific industry ◼ Rules governing foreign investment ◼ Impact of the economic environment on social development ◼ Urbanization, life expectancy, literacy rates, etc. ◼ Physical Quality of Life Index (PQLI)
Regional Economic Integration Levels of economic integration F ree rade Area a Goods and services are freely trades among all members. Each country maintains its own trade barriers vis-a-vis nonmembers Customs Union Members establish a common trade policy with respect to nonmembers Common market a Factors of production mobility is emphasized. A common al tariff is adopted P ■ Economic union Integration and harmonization of economic and monetary policies 1s achieved leading to poltical union
Regional Economic Integration ◼ Levels of economic integration ◼ Free Trade Area ◼ Goods and services are freely trades among all members. Each country maintains its own trade barriers vis-à-vis nonmembers. ◼ Customs Union ◼ Members establish a common trade policy with respect to nonmembers. ◼ Common Market ◼ Factors of production mobility is emphasized. A common external tariff is adopted ◼ Economic Union ◼ Integration and harmonization of economic and monetary policies is achieved leading to political union