1. World Marketplaces

2. World Marketplaces North America: U.S., Canada, Mexico, the countries of Central America US: 24% of world’s GDP, Exports are 12% of U.S. GDP, 133 of 500 of world’s largest MNCs Canada: Only 34 mil. People, but 80% of population in 100-mile band along southern border Mexico: Most populous Spanish-speaking nation, NAFTA & EU free trade agreements have brought many new factories Others: 83 mil people, but only $4B GDP (one quarter of Canada)

3. South America 13 countries with common political history. Considerable economic & social problems Chile is one of most free-market economies in the world, Venezuela is the opposite. Brazil has had fast growth and a rapidly expanding middle class

4. World Marketplaces Western Europe EU: 27 countries (17 use the Euro), 500 mil people, $16.4 trillion GDP, Germany world’s 4th largest economy, UK/France/Spain/Italy are other major players Newest members come from former Soviet Union Iceland/Norway/ Switzerland are not EU.

5. World Marketplaces Eastern Europe Russia: 9 th largest population, GDP increasing by 6%/year since 2000, 3 rd largest currency reserves Other CIS states are much smaller markets Central Asia Five republics with much in common. Muslim faith is dominant, fossil fuels extensive

6. World Marketplaces Asian Kingpins China: 1.3B people, communist but adopting market policies, steady 10% growth, exploding FDI India: 1B people, diverse sub-economies, cumbersome bureaucracy, overburdened institutions Japan: 126 mil people, $5.1 tril GDP. Keiretsu are large families of interrelated companies, cross- ownership, slow growth

7. Southern Asia Four Tigers: South Korea, Taiwan, Singapore, Hong Kong. Rapid industrialization, massive exporting (half of GDP), high incomes. Southeast Asia: Mix of growth/risk, poverty/high- earners, stability/intermittent turmoil Aus/N.Z: Concentrated populations, agriculture & tourism, common culture

8. Africa 1B people in 55 countries. $2 tril GDP all together, mostly from South Africa, Nigeria, Egypt, & Algeria. Commodities boost some countries: Algeria, Angola, Libya, Nigeria, Zambia Botswana Many poor agricultural nations South Africa may become a dominant force in coming years owing to its minerals exports

9. Middle East Saudi Arabia has largest economy, $4B GDP Israel highest income, $25K/year Oil exports account for most of GDP in the petro- states. Trying to diversify for “life after oil” High cultural distance from U.S. deters initial investments Sovereign wealth funds invest abroad