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©2004 Prentice Hall2-1 Chapter 2: Global Marketplaces and Business Centers International Business, 4 th Edition Griffin & Pustay
©2004 Prentice Hall1-2 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
©2004 Prentice Hall1-3 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
©2004 Prentice Hall1-4 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
©2004 Prentice Hall1-5 Vital Information in International Business Basic geography Market characteristics Culture Politics
©2004 Prentice Hall1-6 World Economic Activity Triad –Japan –European Union –United States Quad –Triad –Canada
©2004 Prentice Hall1-7 Figure 2.1 Shares of World’s GDP, 1970
©2004 Prentice Hall1-8 Figure 2.1 Shares of World’s GDP, 2001
©2004 Prentice Hall1-9 Classifying Countries by Income Levels High Income Countries $9,206+ annual per capita income Lower Income Countries $725 or less annual per capita income Middle Income Countries $745 - $9,206 annual per capita income Least Developed Low literacy rates, Low per capita income Lack of infrastructure
©2004 Prentice Hall1-10 High Income Countries Cluster 1: OECD member countries Cluster 3: Hong Kong, Israel, Singapore, Taiwan Cluster 2: Kuwait and United Arab Emirates
©2004 Prentice Hall1-11 Marketplaces of North America United States Canada Mexico Greenland Central America Caribbean islands
©2004 Prentice Hall1-12 Map 2.1 North America
©2004 Prentice Hall1-13 United States 3 rd largest population in world 4 th largest land mass Largest economy 2001 GDP: $10.2 trillion Prime market for lower-income countries trying to raise standards of living through exports
©2004 Prentice Hall1-14 Figure 2.2 Headquarters of World’s Largest Corporations in 2000 by Country
©2004 Prentice Hall1-15 Canada 2 nd largest land mss 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
©2004 Prentice Hall1-16 Advantages of Canada Proximity to U.S. market Stability of legal and political systems Excellent infrastructure and educational systems
©2004 Prentice Hall1-17 Mexico Largest Spanish-speaking nation Federal government system Participant in NAFTA along with U.S. and Canada
©2004 Prentice Hall1-18 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
©2004 Prentice Hall1-19 Marketplaces of Western Europe Group 1: European Union (EU) member countries Group 2: Other countries in region
©2004 Prentice Hall1-20 Map 2.2 Western Europe
©2004 Prentice Hall1-21 Marketplaces of Eastern and Central Europe –Bosnia-Herzegovina –Croatia –Macedonia –Slovenia –Serbia –Montenegro Eastern Europe –15 countries resulting from disintegration of Soviet Union Central Europe –Albania –Austria –Bulgaria –Czech Republic –Slovak Republic –Hungary –Poland –Romania
©2004 Prentice Hall1-22 Map 2.3 Eastern Europe
©2004 Prentice Hall1-23 Map 2.4 Central Europe
©2004 Prentice Hall1-24 Marketplaces of Asia Japan Australia and New Zealand The Four Tigers China India Afghanistan and Central Asian Republics Southeast Asian Countries
©2004 Prentice Hall1-25 Map 2.5 Asia
©2004 Prentice Hall1-26 Map 2.6 Australia and New Zealand
©2004 Prentice Hall1-27 The Four Tigers South Korea Taiwan Singapore Hong Kong
©2004 Prentice Hall1-28 Marketplaces of Africa and the Middle East Africa –815 million people –54 countries Middle East –Cradle of civilization
©2004 Prentice Hall1-29 Map 2.7 Africa and the Middle East
©2004 Prentice Hall1-30 Map 2.9 South America
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