The following will be discussed in this chapter: Contemporary global economy, world marketplaces, high income marketplaces, middle income-marketplaces, low income marketplaces, world marketplaces, competitive advantage,. | Lecture 10 Chapter 5 Understanding The Global Context Of Business Contemporary Global Economy Globalization Benefits of globalization General Agreement On Tariffs and Trade Bigger markets Diversification of risk Impact of technology Utilization of other country resources Producing things efficiently World Marketplaces World bank, an agency of UN uses per capita income (average income per person) as a measure to divide countries in to one of three group High Income Marketplaces Per capita income greater than $9,386 . & Canada Europe Australia & New Zealand Japan, South Korea, Singapore, Taiwan, & Hong Kong Kuwait, United Arab Emirates, Israel Per capita income less than $9386 but more than $765 Czech Republic, Greece, & Hungary, Poland Turkey Mexico, Argentina, & Uruguay Middle Income-Marketplaces- Per capita less than $765 (developing countries China India (huge population, seen as attractive markets) Somalia Pakistan (low literacy rate, weak infrastructure and unstable governments)s Low Income Marketplaces World Marketplaces World bank, an agency of UN uses per capita income (average income per person) as a measure to divide countries in to one of three group Competitive Advantage Absolute: when a country can produce something that is cheaper and or of higher quality than any other country Comparative: the ability to produce some products more efficiently and better than others Competitive Advantage Produce Efficiently Low High Absolute- Diamonds Comparative South Africa Rest of World US South Korea Export Export Grain DVDs National Competitive Advantage Import-Export Balances Balance Of Trade Trade Deficits/Surpluses Balance Of Payments Exchange Rates (currency of one country can be exchanged for that of another Rates & Competition Fixed rates Floating rates (depending upon conditions) Cost of chocolate Rs. 18 (Rs. 3*60) Rs. 270 (Rs. 3*90) Currency fluctuation effects demands Dollar Exports Dollar Exports International Business Management Going . | Lecture 10 Chapter 5 Understanding The Global Context Of Business Contemporary Global Economy Globalization Benefits of globalization General Agreement On Tariffs and Trade Bigger markets Diversification of risk Impact of technology Utilization of other country resources Producing things efficiently World Marketplaces World bank, an agency of UN uses per capita income (average income per person) as a measure to divide countries in to one of three group High Income Marketplaces Per capita income greater than $9,386 . & Canada Europe Australia & New Zealand Japan, South Korea, Singapore, Taiwan, & Hong Kong Kuwait, United Arab Emirates, Israel Per capita income less than $9386 but more than $765 Czech Republic, Greece, & Hungary, Poland Turkey Mexico, Argentina, & Uruguay Middle Income-Marketplaces- Per capita less than $765 (developing countries China India (huge population, seen as attractive markets) Somalia Pakistan (low literacy rate, weak infrastructure and unstable .
