International business 5th griffin chapter 02

global marketplaces
and business centers

international business, 5th edition

chapter 2


Chapter Objectives 1
• 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
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Chapter Objectives 2
• Describe Western Europe as a major
marketplace and business center in the
world economy
• Discuss the problems facing the
economies of the former communist
countries of Eastern and Central Europe

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Chapter Objectives 3
• 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

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Vital Information in
International Business

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Basic geography

Market
characteristics

Culture

Politics


World Economic Activity
• The Triad
– Japan

– Triad

– European Union

– Canada

– United States

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• The Quad


Figure 2.1a Shares of World’s GDP, 1970

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Figure 2.1b Shares of World’s GDP, 2004

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Marketplaces of North America

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• United States

• Greenland

• Canada

• Central America

• Mexico

• Caribbean islands


Map 2.1 North America

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United States
• Third largest population in world
• Fourth largest land mass
• Largest economy
• 30 percent of world’s GDP in 2004
• Prime market for exports

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The U.S. Dollar

Invoicing
currency

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Flight
capital


Classifying Countries by
Income Levels

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High Income

Middle Income

Lower Income

Least Developed


Figure 2.2 Headquarters of World’s
Largest Corporations in 2005 by Country

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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 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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Marketplaces of Western Europe

European Union Member Countries

Other Countries in Western Europe

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Euro Countries

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• Belgium

• Ireland

• France

• Greece

• Luxembourg

• Portugal

• Germany

• Spain

• Italy

• Austria

• Netherlands

• Finland


Map 2.2 Western Europe

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Marketplaces of Eastern Europe

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• Russia

• Belarus

• Estonia

• Georgia

• Latvia

• Moldova

• Lithuania

• Ukraine

• Armenia

• Azerbaijan


Map 2.3 Eastern Europe

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Marketplaces of Central Europe

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• Romania

• Albania

• Bosnia-Herzegovina

• Austria

• Croatia

• Bulgaria

• Macedonia

• Czech Republic

• Slovenia

• Slovak Republic

• Serbia

• Hungary

• Montenegro

• Poland


Map 2.4 Central Europe

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