Ch04 The Economic Environment(国际营销学-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). 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. Can be formed for certain classes of goods or services only. Customs Union Area Tariff and quota barriers among member countries are eliminated. Member countries establish common tariff and trade barriers against nonmember countries. Tariff revenues are shared among members according to a prescribed formula. Common Market Area No trade barriers among member nations. No restriction on the movement of labor, capital, or technology across borders. Member countries establish common tariff and trade barriers again