IM Uint II.pptx - UNIT II INTERNATIONAL MARKETING ENVIRONMENT INTRODUCTION • The transitional economies which accepted MNC firms and privatization saw


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INTRODUCTION The transitional economies which accepted MNC firms and privatization saw high degree of growth Criticism of MNC in developing countries like Africa and Asia led to neo colonialism. Some companies operate in environment where every thing is forbidden and some counties operate in environment where everything is legal. Companies in legally ambiguous environments face ethical and legal challenges from host country
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THE ECONOMIC ENVIRONMENT OF INTERNATIONAL MARKETING WORLD ECONOMY US sneezes and the World catches cold. Recession where US experienced a down turn in economy. US also gets affected .The Asian crisis of late 1990’s In internet age countries are becoming more and more connected by the flow of technology and ideas across borders. Rather than rising and falling separately various economies respond to the same forces. Interdependence is the mantra of Globalization.
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THE ECONOMIC DISPARITY In the current economic environments firms from industrialized countries and their representatives dominate the world economy allocating resources world wide based on market potential rather than local population needs. Creating a gap between countries having it and countries not having it. Developing countries on other hand control resources(raw material and labour) that multinational needs. Dynamics between developed and developing countries.
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PERSPECTIVE ON ECONOMIC GROWTH TWO Model: Western model-by Rostow Marxist –Leninist Model
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Take Of The Rostow Modernization Model Each stage is a function of productivity, economic exchange, technological improvements and income Growth requires advancing from one stage to the next Traditional Society Transitional Society Drive to Maturity High Mass Consumption
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Traditional society Characterized by an economic structure that is dominated by agriculture. Minimal productivity few exchange transactions take place Economic change and technological improvements are not sufficiently to sustain
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Transitional society Increased productivity in agriculture Emerging of modern manufacturing techniques In manufacturing low productivity remains the norm
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Take off Growth becomes a norm Improvement in production Income increase across boarders Entrepreneurs emerge.
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Drive to maturity Modern technology fully adopted in all economic activity and new leading sectors emerge Economy demonstrate the technological and entrepreneurial skill to produce anything it chooses. The economy looks beyond the country’s border development.
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High mass consumption Surge in per capita income Increase in social welfare program Masses can afford goods beyond food, clothing and shelter
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The Marxist-Leninist Model Primitive Society Slavery-Based Society Feudalism Capitalism Socialism Communism
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Political, Legal, and Regulatory Environment
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  • Fall '19
  • Mallika Sankar

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