Int Mktg Chapters 9-11-12

Int Mktg Chapters 9-11-12 - Chapter 9 1 Global perspective...

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Chapter 9 1. Global perspective a. A pattern of economic growth and global trade is emerging consisting of three multinational market regions, Europe, Americas, and Asia 2. Stages of Economic development- an increase in national production that results in an increase in the average per capita gross domestic product. a. Economic level is the single most important environmental element to which the foreign marketer must adjust the marketing task b. Stage 1: The Traditional Society i. Countries lack the capability of significantly increasing the level of productivity, marked absence of systematic application of methods of modern tech, literacy is low as are other social aspects. c. Stage 2: Preconditions for takeoff i. Societies in the process of transition to the takeoff stage, advances of modern tech are being applied in agriculture and production, development of transportation, communications, power, education, health, and other public actions have started small but are important. d. Stage 3: The Takeoff i. Countries achieve a growth pattern that becomes a normal condition, human resources and social overhead have been developed to sustain steady development and agricultural/industrial modernization lead to rapid expansion e. Stage 4: Drive to Maturity: i. Sustained progress is maintained and economy seeks to extend modern technology to all fronts of economic activity, economy takes international involvement, and demonstrates it has technological and entrepreneurial skills to produce anything it wants f. Stage 5: Age of high mass consumption i. Shifts in the leading economic sectors toward durable consumer goods and services, real income per capita rises to the point where a lot of people have a significant amounts of discretionary income g. UN Models: i. MDCs: More developed countries- industrialized countries with high per capita income ii. LDCs: Less developed countries- industrially developing countries just entering world trade, relatively low income per capita iii. LLDCs: least developed countries- industrially underdeveloped,, agrarian subsistence with rural populations, very low per capita 3. NIC (newly industrialized countries) growth factors- countries experiencing rapid industrialization and economic expansion a. Political stability in policies affecting their development
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b. Economic and legal reforms, poorly defined and weakly enforced contracts are features of poor countries c. Entrepreneurship, free enterprise in the hands of the self employed was the seed of economic growth d. Planning, central plan with observable and measurable development goals linked to specific policies was in place e. Outward orientation, production for the domestic market and export markets with increases in efficiencies and continual differentiation of exports from competition was the focus f. Factors of production, if there were no resources (factors of production) an
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Int Mktg Chapters 9-11-12 - Chapter 9 1 Global perspective...

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