test 4 Flashcards
(40 cards)
define economic development
It is known as an increase in average per capita gross domestic product (GDP) production which increases national production.
Rapid economic growth increases consumer demand.
Define the relationship between time zone and marketing operations
Virtual meetings are hard to execute.
Time zones have the greatest influences successful commercial efforts abroad.
The common time zones give the Europeans advantages in both Africa and the Middle East.
There is the most economic growth in countries that have the same time zone.
Trading areas defined by time zones
Americas
Europe and Africa
Asia pacific
The economic growth within a country affects what?
Attitudes towards foreign business
The demands for good
The distribution systems found within a country
The entire marketing process
Define UN classification of countries based on economic development
Most developed – industrialised countries with high per capita incomes (Canada, England, France)
Less developed – industrially developing countries just entering world trade with relatively low per capita incomes (Asia and Latin America)
Least developed – industrially underdeveloped, agrarian, subsistence (Africa)
More-developed countries (MDCs):
UN classification
Industrialized countries with high per capita incomes, such as Canada, England, France
Less-developed countries (LDCs):
UN classification
Industrially developing countries just entering world trade with relatively low per capita incomes, such as many countries in Asia and Latin America
Least-developed countries (LLDCs):
UN classification
Industrially underdeveloped, agrarian, subsistence, such as Africa
Understand the new classification (IMF and WB)
Developed economies (Canada, US, France, Sweden, etc.)
Emerging markets (China, Brazil, Mexico, South Africa, Taiwan, etc.)
Developing economies (Africa)
Developed economies
IMF and WB
Canada, US, France, Sweden,
Emerging markets
IMF and WB
China, Brazil, Mexico
Developing economies
IMF and WB
Africa
Economic growth factors
Political stability
Economic and legal factors
Planning
Production
Industries targeted for growth
Incentives to force high domestic rate of savings, update infrastructure, transportation, education
The influence of infrastructure on a country’s economic development
Infrastructure represents capital goods that serve the activities of many industries.
Infrastructure increases economic development
Business efficiency is affected by their presence or absence.
What are marketing contributions to economic development?
Marketing is the middle man between productive capacity and consumer demand.
The marketing process can create a balance between higher production and higher consumption.
Explain marketing in developing countries
Marketing must be tailored to each circumstance
Pricing in poorer countries may have different problems to pricing in more developed countries.
A marketer must assess the existing level of marketing development and its receptiveness to understand the marketing potential of a country.
The relationship between market development and economic development
The level of market development roughly parallels the stages of economic development.
When an economy is more developed, more marketing functions are demanded, and the institutions become more specialised and sophisticated.
As countries develop, the distribution channel systems develop.
Understand the Americas regional economic integration
US and Canada: CFTA
US, Canada and Mexico: NAFTA (new CUSMA) to reduce tariffs among country members
Dominican Republic free trade agreement (DR-CAFTA) : Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and US.
CFTA
US and Canada
NAFTA (new CUSMA)
US, Canada and Mexico
Used to reduce tariffs among country members
The strategic implications of economic development for marketing
As a country develops, incomes change, population concentrations shift, expectations for a better life, new infrastructures evolve
When incomes rise, new demand is generated at all income levels.
As incomes rise to middle-class range, demand for more costly goods increases.
least to most powerful economic integration stages
Regional cooperation groups
Free Trade area
Custom Union
Common market
Economic Union
political union
Understand European institutions
European Commission – Initiates policy and supervises its observance by member states
Council of Ministers – The decision-making body; determines which proposals of the Single European Act to accept as binding to members
The European Parliament – Passes and amends legislation
Court of Justice – The Supreme Court of the European Union
European Commission
Initiates policy and supervises its observance by member states
