Ch04 The Economic Environment(国际营与销学-厦门大学 黄维梁).ppt

Developed by Cool Pictures MultiMedia Presentations Copyright ? 2004 by South-Western, a division of Thomson Learning. All rights reserved. The EconomicEnvironment Chapter 4 The World Economic Pyramid *Bases on Purchasing power parity in U.S. $. SOURCE: U.N. World Development Reports Less Than $1,500 $1,500-$20,000 More Than $20,000 Annual per Capita Income* Tiers Population in Millions 75-100 1,500-1,750 4,000 Major Industrialized Countries of the World Market Characteristics Population demographics Age distribution, life expectancies, household size, urbanization. Income Distribution of low, medium, and high incomes. Gross domestic product per capita. Purchasing power parity. Consumption patterns Income spent on necessities and luxuries. Product saturation or diffusion. Product form differences. Market Characteristics (continued) Availability and quality of infrastructure Rail traffic networks for distribution capabilities. Communication systems for marketing. Energy (electrical and fuel) consumption. Foreign involvement in the economy Degree of foreign direct investment in country or in a specific industry. Rules governing foreign investment. Impact of the economic environment on social development Urbanization, life expectancy, literacy rates, etc. Physical Quality of Life Index (PQLI). Regional Economic Integration Levels of economic integration Free Trade Area Least restrictive. Goods and services are freely trades among all members. Each country maintains its own trade barriers for nonmembers. Customs Union Members establish a common trade policy with respect to nonmembers. Common Market Factors of production mobility is emphasized. A common external tariff is adopted. Economic Union Integration and harmonization of economic and monetary policies is achieved leading to political union. Free Trade Area Eliminates tariff and quota barriers among member countries. Each country is free to set its own tariff and quota barriers against nonmember countries. Ca