Global Economic Environment-2011(1)

Global Economic Environment-2011(1) - The Global Economic...

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The Global Economic Environment Multinational Marketing MKT 359
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World is integrating… Around 1900 only about 10 percent of the world economy was integrated, now over 50 percent is. This means companies no longer make products for only one market, but are trying to make one product for multiple markets.
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Economic Systems Determined by… Type of economy Type of government Trade and capital flows The commanding heights Services provided by the state and funded through taxes Institutions Markets
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Macroeconomic Indicators Country’s wealth Distribution of wealth GNI (formally GNP) GDP GDP per capita Percentage of GDP generated from agriculture Per capita income Purchasing power Income distribution Socioeconomic indicators
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Distribution of wealth It is a function of: National economy How much of GDP goes to fund the government How much of GDP is used to pay for imports How much the remaining wealth is distributed Income distribution The distribution of company ownership Labor rates vs. management rates Social structure
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Gross Domestic Product It measures the output resulting from factors of production located on the country’s territory - regardless of their ownership The difference with GNI is that GNI measures only the output resulting from factors of production owned by the country’s residents
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Per Capita Income Mathematical mean of Gross Domestic Income per individual It is affected by large differentials of income among the country’s population Per capita income figures can hide market opportunities because it does not represent purchasing power It does not represent the quality of life of the country’s population It does not reflect government’s subsidies to the population
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Socioeconomic Indicators These indicators refer to the characteristics of the population as opposed to economic
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Global Economic Environment-2011(1) - The Global Economic...

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