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World Economy, Economic System Types, Stages of Market, Balance of Payments, Early Twentieth, Global Competitors, Local Ones, New Realities, Capital Movements, Dominating Factor. Its Global Economics lecture, i hope you like it.
Typology: Slides
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An overview of the world economy A survey of economic system types The stages of market development The balance of payments
Capital movements have replaced trade as the driving force of the world economy Production has become uncoupled from employment The world economy, not individual countries, is the dominating factor
75-year struggle between capitalism and socialism has almost ended E-commerce diminishes the importance of national barriers and forces companies to reevaluate business models
Opposite of market capitalism State holds broad powers to serve the public interest; decides what goods and services are produced and in what quantities Consumers can spend on what is available Government owns entire industries and controls distribution Demand typically exceeds supply Little reliance on product differentiation, advertising, pricing strategy
Rankings of economic freedom among countries free, mostly free, mostly unfree, repressed Variables considered include such things as: Trade policy Taxation policy Capital flows and foreign investment Banking policy Wage and price controls Property rights Black market
Free
Repressed
Limited industrialization High percentage of population involved in farming High birth rates Low literacy rates Heavy reliance on foreign aid Political instability and unrest Concentrated in Sub-Saharan Africa India is the only BRIC country
Rapidly expanding consumer markets Cheap labor Mature, standardized, labor-intensive industries like textiles and toys
Marketing Opportunities in LDCs
Characterized by a shortage of goods and services Long-term opportunities must be nurtured in these countries Look beyond per capita GNP Consider the LDCs collectively rather than individually Consider first mover advantage Set realistic deadlines
Mistaken Assumptions About LDCs
Importance of information processing and exchange Ascendancy of knowledge over capital, intellectual over machine technology, scientists and professionals over engineers and semiskilled workers Future oriented Importance of interpersonal relationships
Goal of global economic stability and prosperity United States Japan Germany France Britain Canada Italy Russia (1998) (^) 2007 G-8 leaders in Germany