【正文】 vironmental issues by demanding environmentally friendly ? Products and packaging ? Manufacturing ? Waste management Today I have Learned 1. . 2. . 3. . 4. . 5. . IM6 Economic Factors International Marketing: NOTES HAU Fall2023 Professor Andrei Ribalkin Based on CGB and IB Outline ? Economic Systems ? Economy assessment ? Major Economic Indicators 284 Economic systems ? Connection between political ideology and economic systems –countries where individual goals are given primacy free market economic systems are fostered –countries where collective goals are given primacy there is state control of markets Types of Economic Systems What is produced and in what quantity is determined and signaled to producers through a price system in –Market economy by supply/demand –Command economy by government –Mixed economy by both supply/demand and government Economy Assessment Through ? Macroeconomic and ? Microeconomic indicators Major Macroeconomic Indicators ? Gross Domestic/National Product (GDP/GNP) ? Purchasing Power Parity (PPP) ? Human Development Index (HDI) ? Inflation rate ? Employment 288 Determinants of Economic Development ? Gross National Ine (GNI), Gross National Product (GNP) or Gross Domestic Product (GDP) ? Purchasing Power Parity (PPP) ? Human Development Index (HDI) 289 GNI, GNP and GDP measure total value of goods and services produced annually in a country And also per capita Does not account for differences in cost of living 290 PPP pares prices of the same products in different countries allows for more direct parison of living standards 291 HDI measures quality of life in different nations Based on life expectancy, educational attainment, and PPP based average ines Levels of Economic Development World Bank Classification: ? Highine countries ? Middleine countries ? Lowine countries HighIne Countries ? GNI per capita $10,726 ? Consumers have a purchasing power ? Markets are mature ? Competition is high MiddleIne Countries ? $875GNI per capita$10,725 ? Markets are developing rapidly Subdivided to ? $3,466Uppermiddle ine countries$10,725 ? $875Lowermiddle ine countries$3,465 LowIne Countries ? GNI per capita$875 ? Agrarian ? Underserved markets ? Represent opportunities for niche markets Ine Disparity ? The distribution of ine among population groups (rich, middle ine, poor) ? May also be important to assess market potential, especially in middle and lower ine countries Microeconomic Indicators ? Demand for a pany’s product ? Ine to buy the product ? Competition structure including foreign players Home Assignment Please find and list three countries and their GNI per capita in each level and sublevel of economic development: ? Highine countries ? Upper Middleine countries ? Lower Middleine countries ? Lowine countries Today I have Learned 1. . 2. . 3. . 4. . 5. . Chapter Differences in Culture 7 3101 Guanxistrength of relationship ? . ? Business transactions are conducted within the framework of contract law and mechanisms for dispute resolution are in place ? Reciprocal works are being more important but have to operate within the confines of the law ? Gifts may be frowned upon as bribery (Foreign Corrupt Practices Act) ? China ? Personal power and relationships or connections rather than rule of law are important in China ? Reciprocal relationship works can often mean doing favors or offering bribes ? Establish relationships with gifts 3102 What is culture? ? “ A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.” ? Hofstede, Namenwirth and Weber 3103 Different ponents of culture ? Values and Norms ? Folkways and mores 3104 Values and norms ? Values: Abstract ideas/assumptions about what a group believes to be good, right and desirable ? Norms: social rules and guidelines that prescribe appropriate behavior in particular situations 3105 Folkways and mores ? Folkways: Routine conventions of everyday life. – Little moral significance – Generally, social conventions such as dress codes, social manners, and neighborly behavior ? Mores: Norms central to the functioning of society and its social life – Greater significance than folkways – Violation can bring serious retribution ? Theft, adultery, incest and cannibalism 3106 Culture, society and nation states ? Society is a group of people who share a mon culture ? No one to one correspondence between society and a nation state – Nation states are political creations – Many cultures can coexist within a nation state 3107 Determinants of culture ? Social structure ? Religion ? Language ? Education ? Economic philosophy ? Political philosophy Fig: 3108 Social structure ? Two dimensions – The extent to which society is group or individually oriented – Degree of stratification into castes or classes ? Social mobility ? Significance to business ? Other influences – Political philosophy – Economic philosophy 3109 Religious and ethical systems ? Christianity – Economic implications ? Hinduism – Economic implications ? Islam – Economic implications ? Buddhism – Economic implications ? Confucianism – Economic implications 3110 World religions Map 3111 Language ? Spoken – Verbal cues – Language structures perception of world ? Unspoken – Body language – Personal space Fig: 3112 Education ? Education can be a source of