Global Marketplaces and Business Centers 2-1 Griffin & Pustay Copyright 2010 Pearson Education, Inc publishing as Prentice Hall International Business, 6th Edition chapter Chapter Objectives • 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 2-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Describe Western Europe as a major marketplace and business center in the world • 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 2-3 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall The World Economy 2-4 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketplaces of North America • United States • Canada • Mexico • Greenland • Countries of Central America and the Caribbean 2-5 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall United States • Third largest population in world • Fourth largest land mass • Largest economy • 27 percent of world’s GDP in 2006 • Prime market for exports 2-6 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall The U.S Dollar Invoicing currency 2-7 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Flight capital Canada • Second largest land mass • 80 percent of population concentrated along U.S./Canadian border • Rich natural resources • Trade with U.S - single largest bilateral trade relationship in the world 2-8 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Advantages of Canada • Proximity to U.S market • Stability of legal and political systems • Excellent infrastructure and educational systems 2-9 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 2.1 North America 2-10 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketplaces of Asia • Japan • India • Australia and New Zealand • Afghanistan and Central Asian Republics • The Four Tigers • China 2-20 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall • Southeast Asian Countries Map 2.4 Asia 2-21 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Japan • Second largest economy • GDP of $4.3 trillion in 2006 • Industries controlled by keiretsu • GDP growth rate of 1.6 percent (since 2000) 2-22 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 2.5 Australia and New Zealand 2-23 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall The Four Tigers 2-24 South Korea Taiwan Singapore Hong Kong Copyright 2010 Pearson Education, Inc publishing as Prentice Hall China • World’s most populous country – approximately 1.3 billion people • Communist ideology mixed with market-oriented economic policies • Heavy FDI 2-25 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 2.3 Annual FDI Flows to China 1982-2006 2-26 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall India • World’s second most populous country • Per capita GDP of $820 • British colony until 1947 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall 2-27 Southeast Asian Countries • Thailand, Malaysia, and Indonesia • Low labor costs • Significant FDI in recent years • Continued recovery from currency crisis in 1997 and 1998 2-28 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketplaces of Africa and the Middle East • Africa – 867 million people – 54 countries – Major economies: • South Africa • Ivory Coast • Algeria • Nigeria 2-29 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall • Middle East – Cradle of civilization – Major economies: • Saudi Arabia • Kuwait • UAE Map 2.6 Africa and the Middle East 2-30 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 2.7 The Middle East 2-31 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Marketplaces of South America • Brazil • Colombia • Bolivia • French Guiana • Uruguay • Paraguay • Argentina • Peru • Chile • Ecuador • Venezuela 2-32 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Map 2.8 South America 2-33 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc publishing as Prentice Hall .. .Chapter Objectives • Evaluate the impact of the political and economic characteristics of the world’s... center in the world economy 2-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Describe Western Europe as a major marketplace and business center