FMA 601 Foreign Market Analysis Module 2: Global Trade Environment

Foreign Market Analysis Global Marketing www.mygbs.org

The Overall Environment Internal organisation environment External enviroment Laws Culture Marketing environment Internal organisation environment Technology Society Competitors Suppliers Geography Politics Demographics Economics www.mygbs.org

European Union Smaller than Australia Total of 502 million inhabitants 3rd largest population, after China and India France is the largest country and Malta is the smallest 27 member countries www.mygbs.org

Product Strategies in the EU Harmonization in product standards Common patenting and branding Harmonization in packaging www.mygbs.org

Russia One of the biggest, most promising markets in the world Consumer confidence and spending have been steadily rising 142 million people Estimated per capita GDP of $12,100 www.mygbs.org

North America - NAFTA $14.6 trillion GNP 30% of Global Income 312 million population 4.5% U.S. percentage of world population $500+ billion in goods and services flow between Canada and the U.S. – the largest trading relationship between any two countries www.mygbs.org

Asia-Pacific The five economic “tigers” are China Japan South Korea Taiwan Singapore Below them are three countries poised to become the next “tigers” Thailand Malaysia Indonesia www.mygbs.org

China $5.8 trillion GDP (2010) 1.3 billion population $4,500 GDP per capita Nearly 10% annual growth in GDP Total size of approximately 6 million square miles (slightly smaller than the US) Largest trading partner is the US www.mygbs.org

Japan $5.4 trillion GDP (2010) 1.26 million population $40,000 GDP per capita Total territory = 0.28% of the world total Only 3% of Japan’s total land is residential www.mygbs.org

India $1.6 trillion GDP (2010) +1 billion population $1,371 GDP per capita Over 8% annual growth in GDP Almost 40% of population live below poverty line www.mygbs.org

Indonesia $707 billion GDP (2010) $4,200 GDP per capita Over 6% annual growth in GDP Indonesia is approaching the growth stage of China two decades ago Language is Bahasa www.mygbs.org

Oceania Comprised of Australia and New Zealand Total population of approximately 26 million (Australia has 22 million of total) Australia GDP = $1.2 trillion (2010) Australia GDP per capita = $55,000 (2010) New Zealand GDP per capita = $33,000 (2010) www.mygbs.org

Latin America and the Caribbean Consists of South and Central America and the Caribbean Latin America is a fast growing region Latin America has 8.5% of world population Total population of over 550 million Average annual income per capita ranges from $14,440 (Chile) to $4,280 (Bolivia) www.mygbs.org

Brazil Largest country in Latin America “B” in BRIC-IT – the six fast-growing developing countries of Brazil, Russia, India, China, Indonesia and Turkey Population of 194 million GDP of $2,477 billion (2010) Average GDP of $11,640 (2010) www.mygbs.org

Middle East and Africa Region encompasses 14 countries Total population of 306 million Total GDP of $1.9 trillion (2010) Average annual GNI of $2,198 Long a battleground of rival religions, tribes, nations, and dynasties www.mygbs.org

Sub-Saharan Africa Productivity is rising, trade is expanding, inflation has dropped, foreign debts have dropped, and budget deficits have declined Comprised of 48 countries Located between Sahara Desert and Zambezi River Total population of over 850 million GDP is $1,1 trillion (2010) GNI per capita is $1,200 (2010) www.mygbs.org

Decision Criteria for International Business Political Risk Market Access Factor Costs and Conditions Country Infrastructure Foreign Exchange www.mygbs.org