ch02TheGlobalEconomicEnvironment全球营销,沃伦·

1、Chapter 2The Global Economic Environment by Kristopher BlanchardNorth Central UniversityIntroduction to ChapterMarket definition People or organizations with needs and wants; both have the willingness and ability to buy or sellThe global economic environment plays a large role in the development of

2、new markets for organizationsThe World Economy An OverviewThe new realities:Capital movements have replaced trade as the driving force of the world economyProduction has become uncoupled from employmentThe world economy, not individual countries, is the dominating factorThe World Economy An Overview

3、The new realities continued:75-year struggle between capitalism and socialism has almost endedE-Commerce diminishes the importance of national barriers and forces companies to re-evaluate business modelsEconomic Systems4 main types of economic systemsMarket CapitalismCentrally planned socialismCentr

4、ally planned capitalismMarket socialismEconomic Systems Market CommandMarket Capitalism CentrallyPlanned CapitalismMarket SocialismCentrallyPlanned SocialismPrivateResource OwnershipStateResource AllocationEconomic FreedomRankings of economic freedom among countriesRanges from “free to “repressedVar

5、iables considered include such things as:Trade policyTaxation policyBanking policyWage and price controlsProperty rightsEconomic FreedomFreeHong KongSingaporeIrelandNew ZealandUnited StatesUnited KingdomNetherlandsAustraliaSwitzerlandRepressedBosniaVietnamLaosIranCubaIraqLibyaNorth KoreaCongoStages

6、of Market DevelopmentWorld Bank has defined four categories of developmentHigh-income countriesUpper-middle income countriesLower-middle income countriesLow-income countriesBased upon Gross National Product (GNP)Stages of Market DevelopmentBig Emerging MarketsChinaIndiaIndonesiaSouth KoreaBrazilMexi

7、coArgentinaSouth AfricaPolandTurkeyMarketing Opportunities in LDCsCharacterized by a shortage of goods and servicesLong-term opportunities must be nurtured in these countriesLook beyond per capita GNPConsider the LDCs collectively rather than individuallyConsider first mover advantageSet realistic D

8、eadlinesInfluencing the World EconomyGroup of Seven (G-7)Organization for Economic Cooperation and DevelopmentThe TriadMarketing Implications of the Stages of DevelopmentProduct Saturation Levels The percentage of potential buyers or households that own a particular productGraph shows that in India

9、a private phone is owned by 1% of the populationBalance of PaymentsRecord of all economic transactions between the residents of a country and the rest of the worldCurrent account record of all recurring trade in merchandise and services, private gifts, and public aid between countriestrade deficittr

10、ade surplusCapital account record of all long-term direct investment, portfolio investment, and capital flowsBalance of PaymentsU.S. balance of payments statistics for the period 1999 to 2003Overview of International FinanceForeign exchange makes it possible to do business across the boundary of a n

11、ational currencyCurrency of various countries are traded for both immediate (spot) and future (forward) deliveryIncreases the risk to organizations that are involved in global marketingManaged Dirty Float?DefinitionsFloat refers to the system of fluctuating exchange ratesManaged refers to the specif

12、ic use of fiscal and monetary policy by governments to influence exchange ratesDevaluation is a reduction in the value of the local currency against other currenciesManaged Dirty Float?DefinitionsDirty refers to the fact that central banks, as well as currency traders, buy and sell currency to influ

13、ence exchange ratesForeign Exchange Market DynamicsSupply and Demand interactionCountry sells more goods/services than it buysThere is a greater demand for the currencyThe currency will appreciate in valuePurchasing Power Parity (PPP) The Big Mac IndexIs a certain currency over/under- valued compare

14、d to another?Assumption is that the Big Mac in any country should equal the price of the Big Mac in the US after being converted to a dollar priceManaging Economic ExposureEconomic exposure refers to the impact of currency fluctuations on the present value of the companys future cash flowsTransactio

15、n exposure is from sales/purchasesReal operating exposure arises when currency fluctuations, together with price changes, alter a companys future revenues and costsManaging Economic ExposureNumerous techniques and strategies have been developed to reduce exchange rate riskHedging involves balancing

16、the risk of loss in one currency with a corresponding gain in another currencyForward Contracts set the price of the exchange rate at some point in the future to eliminate some riskLooking AheadChapter 3 The Global Trade Environment: Regional Market Characteristics and Preferential Trade AgreementsM

17、arket CapitalismIndividuals and firms allocate resourcesProduction resources are privately ownedDriven by consumersGovernment should promote competition among firms and ensure consumer protectionReturnCentrally Planned SocialismOpposite of market capitalismState holds broad powers to serve the publi

18、c interest; decides what goods and services are produced and in what quantitiesConsumers can spend on what is availableGovernment owns entire industriesDemand typically exceeds supplyLittle reliance on product differentiation, advertising, pricing strategyReturnCentrally-Planned CapitalismEconomic s

19、ystem in which command resource allocation is used extensively in an environment of private resource ownershipExamples:SwedenJapanReturnMarket SocialismEconomic system in which market allocation policies are permitted within an overall environment of state ownershipExamples:ChinaIndiaReturnLow-Incom

20、e CountriesGNP per capita of $785 or lessCharacteristicsLimited industrializationHigh percentage of population involved in farmingHigh birth ratesLow literacy ratesHeavy reliance on foreign aidPolitical instability and unrestOf these, only China and India are BEMsReturnLower-Middle-Income CountriesG

21、NP per capita between $786 and $3,125Sometimes called less-developed countries (LDCs)CharacteristicsEarly stages of industrializationCheap labor marketsFactories supply items such as clothing, tires, building materials, and packaged foods3 BEMs: Poland, Turkey, IndonesiaReturnUpper-Middle-Income Cou

22、ntriesGNP per capita between $3,126 to $9,655CharacteristicsRapidly industrializingRising wagesHigh rates of literacy and advanced educationLower wage costs than advanced countriesSometimes called newly industrializing economies (NIEs)3 BEMs: Argentina, Brazil, Mexico, South AfricaReturnHigh-Income CountriesGNP per capita above $9,656Sometimes referred to as post-industrial countries CharacteristicsImporta