Global Marketplaces and Business Centers 2 1 Griffin

Chapter Objectives • Evaluate the impact of the political and economic characteristics of the world’s various marketplaces on business • Appreciate the uses of national income data in making business decisions • Discuss North America as a major marketplace and business center in the world economy 2 -2 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Chapter Objectives (continued) • Describe Western Europe as a major marketplace and business center in the world • Discuss Asia as a major marketplace and business center in the world economy • Assess the development challenges facing African, Middle Eastern, and South American countries 2 -3 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

The World Economy 2 -4 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Marketplaces of North America • United States • Canada • Mexico • Greenland •

United States • Third largest population in world • Fourth largest land mass • Largest economy • 27 percent of world’s GDP in 2006 • Prime market for exports 2 -6 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

The U. S. Dollar Invoicing currency 2 -7 Copyright 2010 Pearson Education, Inc. publishing

Canada • Second largest land mass • 80 percent of population concentrated along U. S. /Canadian border • Rich natural resources • Trade with U. S. - single largest bilateral trade relationship in the world 2 -8 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Advantages of Canada • Proximity to U. S. market • Stability of legal and political systems • Excellent infrastructure and educational systems 2 -9 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Map 2. 1 North America 2 -10 Copyright 2010 Pearson Education, Inc. publishing as

Figure 2. 2 Headquarters of World’s Largest Corporations in 2007 by Country 2 -11

Mexico • Largest Spanish-speaking nation • Federal government system • Participant in NAFTA along

Central America and the Caribbean • Economic development hindered by: – Political instability – Chronic U. S. military intervention – Inadequate educational systems – Weak middle class – Poverty – Import limitations 2 -13 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Marketplaces of Western European Union Member Countries Other Countries in Western Europe 2 -14

Map 2. 2 Western Europe 2 -15 Copyright 2010 Pearson Education, Inc. publishing as

Euro Countries 2 -16 • Belgium • Ireland • France • Greece • Luxembourg • Portugal • Germany • Spain • Italy • Austria • Netherlands • Finland Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Marketplaces of Eastern Europe 2 -17 • Russia • Belarus • Estonia • Georgia • Latvia • Moldova • Lithuania • Ukraine • Armenia • Azerbaijan Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Marketplaces of Central Europe 2 -18 • Romania • Albania • Bosnia-Herzegovina • Austria • Croatia • Bulgaria • Macedonia • Czech Republic • Slovenia • Slovak Republic • Serbia • Hungary • Montenegro • Poland Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Map 2. 3 The Former Soviet Union 2 -19 Copyright 2010 Pearson Education, Inc.

Marketplaces of Asia • Japan • India • Australia and New Zealand • Afghanistan and Central Asian Republics • The Four Tigers • China 2 -20 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall • Southeast Asian Countries

Map 2. 4 Asia 2 -21 Copyright 2010 Pearson Education, Inc. publishing as Prentice

Japan • Second largest economy • GDP of $4. 3 trillion in 2006 • Industries controlled by keiretsu • GDP growth rate of 1. 6 percent (since 2000) 2 -22 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Map 2. 5 Australia and New Zealand 2 -23 Copyright 2010 Pearson Education, Inc.

The Four Tigers 2 -24 South Korea Taiwan Singapore Hong Kong Copyright 2010 Pearson

China • World’s most populous country – approximately 1. 3 billion people • Communist ideology mixed with market-oriented economic policies • Heavy FDI 2 -25 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Figure 2. 3 Annual FDI Flows to China 1982 -2006 2 -26 Copyright 2010

India • World’s second most populous country • Per capita GDP of $820 •

Southeast Asian Countries • Thailand, Malaysia, and Indonesia • Low labor costs • Significant FDI in recent years • Continued recovery from currency crisis in 1997 and 1998 2 -28 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Marketplaces of Africa and the Middle East • Africa – 867 million people – 54 countries – Major economies: • South Africa • Ivory Coast • Algeria • Nigeria 2 -29 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall • Middle East – Cradle of civilization – Major economies: • Saudi Arabia • Kuwait • UAE

Map 2. 6 Africa and the Middle East 2 -30 Copyright 2010 Pearson Education,

Map 2. 7 The Middle East 2 -31 Copyright 2010 Pearson Education, Inc. publishing

Marketplaces of South America • Brazil • Colombia • Bolivia • French Guiana • Uruguay • Paraguay • Argentina • Peru • Chile • Ecuador • Venezuela 2 -32 Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall

Map 2. 8 South America 2 -33 Copyright 2010 Pearson Education, Inc. publishing as

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