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Global Marketing Management by Lee & Carter, Keegan & Bhargava, Business Line, www.ilo.org,
Capital movements rather than trade have become the driving force
2. Economic freedom
3. Stage of economic development 4. PCI, PPP, spread of income 5. Location of population 6. Balance of Payments position and trade patterns 7. International trade alliances/grouping systems 8. Regional economic organizations/trade blocs
1. Economic systems
1. Market allocation
Resource allocation is based on consumer demand Economic democracy Government acts as the watchdog Eg. US, Hong Kong, Singapore, Japan, Australia, etc.
2. Command allocation
State decides what to produce Little reliance on marketing mix variables Distribution handled by Government Eg. Cuba, Ukraine, Iran, Venezuela, etc.
3. Mixed system
Mix of the above Eg. Taiwan, UAE, Brazil, India, Sri Lanka, China, etc.
(based on economic freedom score by www.heritage.org, 2009
2. Economic freedom
Rankings of economic freedom among countries free, mostly free, mostly unfree, repressed Variables considered include: Trade policy Taxation policy Capital flows and foreign investment Banking policy Wage and price controls Property rights Black market
(based on economic freedom score by www.heritage.org, 2009)
MOSTLY UNFREE:
Russia, India, Nigeria, China, Brazil, Egypt,
REPRESSED:
Iran, Iraq, North Korea, Cuba etc.,
Lower-middle-income countries
Basket cases
Are countries with serious economic, social and political problems making them unattractive for investment and operations Low income, no growth, civil strife Eg. Ethiopia, Mozambique
6-18
Political Union
EU + political harmony + centralized government policies Eg. US and Canada
6-26
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