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Lecture International Business (11/e) - Chapter 8

After studying this chapter you will be able to understand: How external costs and benefits affect tradeoffs? What effects externalities have on market price, quantity, and surplus? What private solutions to externalities exist? How taxes, subsidies, quantity regulations, and tradable allowances can be used to counteract an externality? | Economic and Socioeconomic Forces McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter eight Learning Objectives State the purpose of economic analysis Identify different categories based on levels of national economic development and the common characteristics of developing nations Recognize the economic and socioeconomic dimensions of the economy and different indicators used to assess them Discuss the importance of a nation’s consumption patterns and the significance of purchasing power parity 8- Learning Objectives Discuss the new definition of economic development, which includes more than economic growth Explain the degree to which labor costs can vary from country to country Discuss the significance for businesspeople of the large foreign debts of some nations 8- International Economic Analyses (Table 8.1) Economic Analysis When a firm enters overseas markets, economic analyses become more complex 8- International Economic Analysis Sources for Economic Information The Commercial officers in embassies The World Bank The United Nations The International Monetary Fund The Organization for Economic Cooperation and Development 8- Levels of Economic Development Developed A classification for all industrialized nations, which are the most technically developed Developing A classification for lower income nations, which are less technically developed 8- Levels of Economic Development Newly industrialized economies (NIEs) The fast-growing upper-middle-income and high income economies of South Korea, Taiwan, Hong Kong, and Singapore Newly industrializing countries (NICs) The four Asian Tigers and the middle-income economies such as Brazil, Mexico, Malaysia, Chile, and Thailand 8- Dimensions of the Economy Important Economic Indicators Gross National Income (GNI) GNI/capita Income Distribution Private consumption Unit labor costs Exchange rates Inflation rates Interest . | Economic and Socioeconomic Forces McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter eight Learning Objectives State the purpose of economic analysis Identify different categories based on levels of national economic development and the common characteristics of developing nations Recognize the economic and socioeconomic dimensions of the economy and different indicators used to assess them Discuss the importance of a nation’s consumption patterns and the significance of purchasing power parity 8- Learning Objectives Discuss the new definition of economic development, which includes more than economic growth Explain the degree to which labor costs can vary from country to country Discuss the significance for businesspeople of the large foreign debts of some nations 8- International Economic Analyses (Table 8.1) Economic Analysis When a firm enters overseas markets, economic analyses become more complex