1. Chapter 2 Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -1 Global Marketplaces and Business Centers

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 HallChapter 2 -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 HallChapter 2 -3

4. The Marketplaces of North America Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -4

5. Marketplace Overview Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -5 Country Population (millions) 2009 GDP (billions)GDP per capita United States307$14,119$47,240 Canada34$1,336$42,170 Mexico107$874$8,920 Caribbean41$259$6,328 Central America42$134$3,213

6. The United States Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -6 World’s Largest Economy World’s Largest Economy 24% World’s GDP 24% World’s GDP Political Stability Political Stability Prime Export Market Prime Export Market

7. The U.S. Dollar Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -7 Invoicing Currency Flight Capital Long-Term FDI

8. Canada Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -8 34 Million People Major Exporter Natural Resources Trade with USA

9. Advantages of Canada Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -9 Proximity to U.S. MarketPolitical and Legal Stability Infrastructure and Education

10. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -10 Federal Government Open-Market System International Trade Mexico

11. Central America and the Caribbean Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -11 Population of 83 Million Total 2009 GDP $393 Billion Significant Economic Challenges

12. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -12

13. The Marketplaces of Western Europe Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -13

14. The European Union Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -14 27 Member Countries $16.4 Trillion in GDP Population of 499 Million Free Market Oriented Parliamentary Democracy 17 Members Use Euro

15. Influential Members Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -15 GermanyGermany FranceFrance Great BritainGreat Britain

16. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -16 Former Communist Countries in the EU Czech Republic Hungary Poland Slovakia Romania Estonia Latvia Lithuania Bulgaria Slovenia

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 HallChapter 2 -17 Countries Not in the European Union

18. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -18

19. Marketplaces of Eastern Europe and Central Asia Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -19

20. Economics and Politics Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -20 Union of Soviet Socialist RepublicsNewly Independent StatesCommonwealth of Independent States

21. Russia Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -21 142 Million People 142 Million People Natural Resources Natural Resources Solid GDP Growth Solid GDP Growth Cash Reserves Cash Reserves

22. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -22 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

23. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -23

24. The Marketplaces of Asia Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -24

25. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -25 Japan 126 Million People $5.1 Trillion GDP MITI and Keiretsu

26. Challenges for Japan Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -26 GDP GrowthGDP Growth Trade IssuesTrade Issues DemographicsDemographics

27. Australia and New Zealand Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -27 AustraliaNew 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

28. The Four Tigers Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -28 South Korea Taiwan Singapore Hong Kong

29. China Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -29 1.3 Billion People Communist Party Market-Oriented Policies

30. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -30 Annual FDI Flows to China 1992 – 2009

31. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -31 1 Billion People British Influence Global FDI Solid GDP Growth India

32. ThailandThailand MalaysiaMalaysia IndonesiaIndonesia VietnamVietnam Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -32 Southeast Asia

33. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -33

34. The Marketplaces of Africa and the Middle East Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -34

35. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -35 Africa 1 Billion People 1 Billion People Colonialism Colonialism Commodities Commodities Agriculture Agriculture South Africa South Africa

36. Middle East Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -36 “Life After Oil” Petroleum Richness Political Instability Cradle of Civilization

37. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -37

38. The Marketplaces of South America Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -38

39. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -39 ImportSubstitutionExportPromotion Economic Policies

40. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -40 Prices Exports Taxes Inflation Problems with Import Substitution

41. Current Situation Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -41 Improved Business Climate Lack of Social and Economic Mobility

42. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -42

43. Chapter 2 Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -43 Global Marketplaces and Business Centers

44. Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallChapter 2 -44 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.