《I-Marketing》 南京大学mkt23.ppt

INTERNATIONAL MARKETING 6e Newly Emerging Markets Newly Emerging Market Economies A Brief Historical Review Lenin’s Trade Decree of 1918 Formalized the Soviet foreign trade system as a state-controlled monopoly. The system was subsequently adopted by Central European satellites of the USSR People’s Republic of China Centralized economic control (five-year plans) Unlinked the market forces of demand and supply. The lack of competition resulted in inefficiencies and the misallocation of resources. Distribution channels were poorly developed. State-controlled Monopolies International trade transactions were controlled and reviewed by Foreign trade organizations, ministries of trade, and state committees The monopolies resulted in High levels of bureaucracies Low standards of living and per capita incomes. Stagnant low-growth internal economies Isolation from the Western economies. The Shift of the 1980s Exporting outside of the communist bloc was encouraged and trade with the West was emphasized. Protection from international competition was removed as Western imports were allowed entry and foreign direct investment encouraged. New Soviet political and economic programs Perestroika Glasnost The Demise of the Socialist System From 1989 to 1992: The Iron Curtain crumbed almost overnight. The communist empire disintegrated. Newly Emerging Democracies (NEDs) in Central Europe and the Soviet Union began shifting to a market-based economy. Communist-dominated governments were removed from political power. East Germany reunified with West Germany. The Soviet Union separated into autonomous states. The Realities of Economic Change in NEDs Abolishing a centrally planned economy does not create a market economy. Laws permitting private sector entrepreneurs do not create entrepreneurship. Reducing price controls does not make products available or affordable. Fundamental concepts of a market economy are not always accepted. Laws and legal protections for property, trade a