1. FMA 601 Foreign Market Analysis
Module 2:
Global Trade Environment

2. Foreign Market Analysis Global Marketing

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

4. 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

5. Product Strategies in the EU
Harmonization in product standards
Common patenting and branding
Harmonization in packaging

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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)

14. 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)

15. 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)

16. 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

17. 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)

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