1 percent in 1st of 2007 attractive to foreign

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Unformatted text preview: ent growth of 8 percent or higher Healthy and growing economy GDP growth of 11.1 percent in 1st ¼ of 2007 Attractive to foreign investors despite major political Attractive risk risk Product pirating is a major problem Complicated and high-risk venture Economic Performance: Economic Performance: Asia The Four Tigers South Korea Chaebols (large family-held Korean conglomerates) Affected by declining economies of Southeast Asia in Affected 1990’s 1990’s Hong Kong Now part of People’s Republic of China Uncertainty about the role the Chinese government intends Uncertainty to play in local governance to Economic Performance: Economic Performance: Asia The Four Tigers (continued) Singapore Singapore Least hurt by economic downturn of 1990’s Taiwan Progression from labor-intensive economy to one Progression dominated by technologically sophisticated industries (banking, electricity generation, petroleum refining and computers) computers) Economic Performance: Economic Performance: Southeast Asia The Baby Tigers (Thailand, Malaysia, The Indonesia): Indonesia): Large population base Inexpensive labor Considerable natural resources Attractive to outside investors Economic Performance: Economic Performance: Developing and Emerging Countries India Low per capital GDP Recent trend of locating software and high value-added services to this country services Attractive to U.S. and British investors (well educated, Attractive English speaking, technologically sophisticated workers) English Middle East and Central Asia Large oil reserves Highly unstable geopolitical and religious forces Plagued by continuing economic problems Economic Performance: Economic Performance: Developing and Emerging Countries Africa Considerable natural resources African nations remain very poor and undeveloped International trade is not a major sources of income Populace divided into 3,000 tribes that speak 1,000 Populace languages and dialects languages Major political instability Poverty, starvation, illiteracy, corruption, overcrowding Poverty, among many social problems negatively affecting economic sector sector World’s Most Competitive Nations Table 1.10a World’s Most Competitive Nations, 2010 Country Rank Singapore 1 Hong Kong 2 USA 3 Switzerland 4 Australia 5 Sweden 6 Canada 7 Taiwan 8 Norway 9 Malaysia 10 Source: World Competitive Score-board Market Potential Indicators Ranking for Market Potential Indicators Ranking for Emerging Markets, 2007 Review and Discuss 1. 2. 3. How has globalization affected different world regions? What are some of the benefits and costs of globalization for different sectors of society? How has NAFTA affected the economies of North America and the EU affected Europe? What importance do these economic pacts have for international managers in North America, Europe and Asia? Why would MNCs be interested in South America, India, the Middle East, Central Asia, and Africa, the less developed and emerging countries of the world?...
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