International Marketing Notes 6

1 Here is info from the UN
I N F O N A T I O N

http://www.un.org/Pubs/CyberSchoolBus/infonation/e_infonation.htm

   InfoNation is an easy-to-use, two-step database that allows you to view and
              compare the most up-to-date statistical data for the Member States of the
              United Nations.

   In this first menu, you can select up to seven countries. Then, you
              can proceed to the data menu where you will be able to select statistics and
              other data fields.

2    Emerging Markets
   How do we assess market development?
   Countries today are industrializing, some at different rates in various sectors
   Thus there can be rapid development in one sector, like telecommunications,
               and slow development in another sector, like health care
   This makes traditional frameworks hard to use since they are based on
               similar development in all sectors

3    Economic Development
   Economic development is a sustained increase in the real national output of
               goods and services, especially output per capita
   How can development be encouraged? Increase land use, increase efficiency,
               build interdependencies, develop infrastructure, increasing literacy,
               improve education

4    Development vs. Dependency
   Development advances towards goals, will make progress - more involvement in
               industrialization and building industry. Thus high energy use, high
               education, high employment
   Dependency - underdevelopment, no control, no planning - more involvement in
               agriculture

5    Rostow's classification
   Traditional society
   Preconditions for take off
   Take-off
   Drive to maturity
   Age of high mass consumption

6    Let's Look at indicators
   UN Websites: MDCs, LDCs, LLDCs
   International websites through the library
   MSU Ciber site is especially good
   NIC - Newly Industrialized Countries
               - Rapid growth
               - Free market reform
   BEMs - big emerging markets - large, significant populations, many products,
               growth, politically important, affect economic growth - stat-usa.gov

7    Infrastructure
   Capital goods which serve many industries
   Media: newspapers, magazines, tv stations
   Utilities: gas, electricity, water
   Transportation: roads, airports
   Telephones
   Dual Economy
   Market indicators and their meaning

NEW
Newly Industrialized Countries Growth Factors

Political Stability
Economic, Political, and Legal Reforms
Entrepreneurship
Central Planning
Outward Orientation
Factors of Production
Industries Targeted for Growth
Financial Incentives
Privatized State-Owned Enterprises
Large, Accessible Markets
Low Tariffs

Common Traits of Big Emerging Market

Are physically large.
Have significant populations.
Represent considerable markets for a wide range of products.
Have strong rates of growth or the potential for significant growth.
Have undertaken significant programs or economic reform.
Are of major political importance within their regions.
Are "Regional Economic Drivers".
Will engender further expansion in neighboring markets as they grow.

8    The Americas
   Much progress in economic trade in Latin America
   NAFTA
   MERCOSUR

9    Eastern Europe
   Emerging from political philosophy of planned markets
   Divided through ethnic warfare: Czech republic, Bosnia
   High levels of pollution
   Privatizing their industries
   Is it possible to have everyday life and everyday consumer needs in the
               middle of ethnic warfare?

10   Asia
   Financial crisis
   Look at table 9-7 - look at the differences in wealth
   Labor abuses in China - charge by US to improve human rights
   Transition of Hong Kong from 155 years of British rule to Chinese rule in 1997

11   Living Standards
   Who decides what is the standard?
   What do these measures really mean?
   Go back to cultural universals
   Is a "stove" really measuring having something to use to cook?
   Is a "refrigerator" really measuring having something to keep things cold?
   Is "electric lighting" really measuring having lighting?

12   Market Potential Indicators for Emerging Markets
   Seven dimensions are chosen to represent the market potential of a country
               over a scale of 1 to 100, and they are given weights to contribute to the
               overall market potential index.
   Market Size                           Economic Freedom
   Market Growth Rate              Market receptivity
   Market Intensity                     Country risk
   Market Consumption Capacity
   Commercial Infrastructure
http://globaledge.msu.edu/ibrd/marketpot.asp

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