International Business
Management
Chapter 2
Global Marketplaces and Business Centers
2-2
Opening case
The Northwest Passage
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
• 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
2-4
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The outline of chapter 2
• The world economy in 1970 and 2006
• The marketplaces of North America
• The marketplaces of Western Europe
• The marketplaces of Central & Eastern Europe
• The marketplaces of Asia
• The marketplaces of Africa and Middle East
• The marketplaces of South America
The outline of chapter 2
• The world economy in 1970 and 2006
The World Economy
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2-7
The outline of chapter 2
• The world economy in 1970 and 2006
• The marketplaces of North America
• The marketplaces of Western Europe
• The marketplaces of Central & Eastern Europe
• The marketplaces of Asia
• The marketplaces of Africa and Middle East
• The marketplaces of South America
Marketplaces of North America
• United States
• Canada
• Mexico
• Greenland
• Countries of Central America and the Caribbean
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Map 2.1 North America
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United States
• Third largest population in world
• Fourth largest land mass
• Largest economy
• 27 percent of world’s GDP in 2006
• Prime market for exporters
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The U.S. Dollar
Invoicing Flight
currency capital
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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
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Advantages of Canada
• Proximity to U.S. market
• Stability of legal and political systems
• Excellent infrastructure and educational systems
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Mexico
• Largest Spanish-speaking nation
• Federal government system
• Participant in NAFTA along with U.S. and Canada
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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
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The outline of chapter 2
• The world economy in 1970 and 2006
• The marketplaces of North America
• The marketplaces of Western Europe
• The marketplaces of Central & Eastern Europe
• The marketplaces of Asia
• The marketplaces of Africa and Middle East
• The marketplaces of South America
Marketplaces of Western Europe
European Union Member Countries
Other Countries in Western Europe
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2-18
Map 2.2 Western Europe
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Euro Countries
• Ireland
Belgium
• Greece
France
• Portugal
Luxembourg
• Spain
Germany
• Austria
Italy
• Finland
Netherlands
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall 2-20
The outline of chapter 2
• The world economy in 1970 and 2006
• The marketplaces of North America
• The marketplaces of Western Europe
• The marketplaces of Central & Eastern Europe
• The marketplaces of Asia
• The marketplaces of Africa and Middle East
• The marketplaces of South America
Marketplaces of Eastern Europe
• Belarus
Russia
• Georgia
Estonia
• Moldova
Latvia
• Ukraine
Lithuania
• Azerbaijan
Armenia
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2-22
Marketplaces of Central Europe
• Albania
Romania
• Bosnia-Herzegovina
Austria
• Croatia
Bulgaria
• Macedonia
Czech Republic
• Slovenia
Slovak Republic
• Serbia
Hungary
• Montenegro
Poland
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Map 2.3 The Former Soviet Union
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The outline of chapter 2
• The world economy in 1970 and 2006
• The marketplaces of North America
• The marketplaces of Western Europe
• The marketplaces of Central & Eastern Europe
• The marketplaces of Asia
• The marketplaces of Africa and Middle East
• The marketplaces of South America
Marketplaces of Asia
• India
Japan
• Afghanistan
Australia andand
NewCentral
Zealand
Asian Republics
• Southeast
The Four Tigers
Asian Countries
• China
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2-26
Map 2.4 Asia
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Japan
• Second largest economy
• GDP of $4.3 trillion in 2006
• Industries controlled by keiretsu
• GDP growth rate of 1.6 percent (since 2000)
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2-28
Map 2.5 Australia
and New Zealand
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The Four Tigers
South Korea
Singapore
Taiwan
Hong Kong
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China
• World’s most populous country – approximately 1.3 billion people
• Communist ideology mixed with market-oriented economic policies
• Heavy FDI
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Figure 2.3 Annual FDI Flows to
China 1982-2006
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India
• World’s second most populous country
• Per capita GDP of $820
• British colony until 1947
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Southeast Asian Countries
• 10 countries
• Low labor costs
• Significant FDI in recent years
• Continued recovery from currency crisis in 1997 and 1998
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Marketplaces of
Africa and the Middle East
• Middle East• Africa
• Cradle of civilization
• 867 million people
• Major economies:
• 54 countries
• Saudi Arabia
• Major economies:
• Kuwait • South Africa
• UAE • Ivory Coast
• Algeria
• Nigeria
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Map 2.6 Africa and the Middle East
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Map 2.7 The Middle East
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Marketplaces of South America
• Colombia
Brazil
• French
Bolivia Guiana
• Paraguay
Uruguay
• Peru
Argentina
• Ecuador
Chile
• Venezuela
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Map 2.8 South America
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Thank you!