Much was said in the first chapter about the
necessity to take into account the global "environmental" factors.
These factors are those so called "uncontrollables", unlike the
"controllable" factors of price, promotion, place and product. They
include market tastes, economic, socio cultural, legal, technological,
competitive and political factors to name but a few. Failure to account for
these factors can lead to dire consequences. As can be seen later, the failure
by Tanzania to take account of the market changes and demand shift to
polypopylenes from sisal, led to a demise in that country's sisal industry.
The objectives of this chapter are:
· To
describe and demonstrate the importance of the "economic" environment
factor in planning and carrying out global marketing
· To show the importance of the "economic" factor in
global marketing
· To describe and give an understanding of the major world regional
economic blocs with particular emphasis on developing countries
The chapter starts off with a review of the
global economy, the composition of world trade and the World Trade
Institutions. Regionalism is a major phenomenon of the late 80s and early 90s
and so the chapter describes in detail a number of major regional economic
blocs. Very important in any discussion on economic factors is the size of
market, and more specifically, the market ability to purchase, which depends on
levels of income. The chapter finishes by looking at the nature of economic
activity including the stages of market development, urbanisation and
infrastructure as important precursors to the degree of economic activity.
Note that a comprehensive case study covering
the "environmental" aspects of global marketing occurs at the end of
chapter four.
In the past fifty years the global economy has
changed rapidly. Particularly marked has been the development of world economic
integration and standardised products. Coca Cola, Nissan and Marlboro
cigarettes are examples of products which serve nearly every market. Generally
there have been four major changes:
· capital
movements rather than trade have become the driving force of the global economy
· production has become "uncoupled" from employment
· primary products have become "uncoupled" from the
industrial economy and,
· the world economy is in control - individual nations are not,
despite the large world economic share of the USA and Japan.
Taking each of these changes in turn, world
trade is about some US$ 3 trillion, however, capital movements are much higher.
The London Eurodollar market is worth about US$ 75 trillion per annum and
foreign exchange transactions are US$ 35 trillion per annum.
Another change is the decoupling of employment
from production. Employment is in decline whilst manufacturing output is
growing or remaining static at 20-25% of GNP. Sectors such as agriculture, are
achieving higher productivity through mechanisation but this is at the expense
of employment.
Still another change is the decoupling of the
primary product market from the industrial economy. Many commodity prices have
collapsed, for example tea, yet industrial economies have been relatively
affected. Unfortunately the prime producers have been dramatically affected.
Finally, the most significant change is the
change of focus from domestic to the world economy as the chief economic unit.
This has been grasped by Japan and Germany, but not really by the USA, or Africa.
These factors have repercussions on exporting by developing countries. Firstly
with developing countries' emphasis on the export of primary products, they are
at the mercy of world supply and demand movements, with the resultant
fluctuations in prices. Depressed world market prices can have a deleterious
effect on developing economies. Secondly the rapid globalisation and focus away
from domestic economies has created global competition and in turn, this has
pushed up quality. Generally speaking, unless developing countries can break
into non-comittally based products they are being further left behind in the
global economic stakes. However positively, whilst developed worlds concentrate
on industrial and service products it leaves opportunities for developing
countries to export more food based products.
The development of the global economy can be
traced back many hundreds of years when traders from the east and west came
together to exchange goods. However, the growth of the modern global economy is
marked by a number of features as follows:
The legacy of mercantilism 1500-1750
The prevalent wisdom was one of nationalism,
that is, that one nation prospered at the expense of another. Nations like the
UK, Netherlands and later France and Germany, with powerful navies which ruled
the waves in the West, and the traders of the East, dominated that area. Over
time, nationalism gave way to bullionism, where gold and silver, rather than
other raw materials, became the basis of wealth. Still later, domination took
another form, where countries were believed to be powerful if they had a
favourable balance of trade - an excess of exports over imports. Mercantilism
died with the development of the United Nations (UN) and the General Agreement
on Tariffs and Trade (GATT), along with Adam Smith's tome on the "Wealth
of Nations" which advocated market forces as the principal driving force
to development and wealth.
World trade
Economic progress is linked to world trade and
those who preach trade restrictions are denying this fact. Countries like the
old communist bloc (Russia, East Germany, etc.) have not developed as fast as
those with more outward orientation. The same can be said of African nations,
where the inability to industrialise and export in volume has locked them into,
generally, primary product producers. Economic Structural Adjustment Programmes
(ESAP) are supposed to remedy this situation by giveng "command
economies" a market oriented focus.
Another argument concerns whether marketing has relevance
to the process of economic development. Less developed countries (LDCs) have
traditionally focused on production and domestic income generation. Also,
marketing addresses itself to needs and wants and it could be argued that where
LDCs' productive capabilities are far less than unsatisfied needs and wants,
then marketing is superfluous. However, adopting "marketing" could
lead to the more efficient and effective use of productive and marketing
resources and it may be able to focus on current needs and find better
solutions. For example, techniques developed in the West for optimising
transport resources could well be transferred to effect. Similarly, adopting
new methods of marketing may give better results. A good example is the Cold
Storage Company of Zimbabwe (CSC). By changing from the current system of
marketing cattle (the CSC takes in cattle, at fixed prices and slaughters) to
an auction system by description, all actors in the system could benefit.
Decisions in product, price, communications and
merchandising can stimulate economic development. Changing from fixed price
systems to market based pricing could lead to the faster achievement of
development objectives (for example "higher incomes"). In current
drought conditions in Africa, governments could well benefit from advertising
other forms of nutritious food, for example, fish, rather than let the populace
be left uninformed and disgruntled about the lack of maize.
Composition of world trade
Agriculture, minerals, fuels and manufactured goods
figure most in world trade. However shifts are occurring (see table 2.1)6.
Table 2.1 Shift in commodity trade - % of world
trade
Product
|
1980
|
1985%
|
1988%
|
Agriculture
|
22.5
|
1
|
14
|
Minerals
|
14
|
-5
|
14
|
Fuel
|
41
|
-3.5
|
1
|
Manufactures
|
17
|
4.5
|
1
|
Interestingly enough, those economies which have
divested themselves of agriculture (or made it more efficient) and invested in
manufacturing are those which have shown spectacular growth. Table 2.2 compares
Zimbabwe with Thailand6.
Patterns of trade
Most industrialised nations trade with each
other. This had led to their continued domination. particularly the USA,
Western Europe and Japan which between them have 66% of world GNP and trade. In
1985 industrialised trade to other industrialised countries accounted for 47%
of trade, next came developing countries to industrialised (15%), and finally
industrialised to developing countries (13%). Political influences can also be
seen between trading partners, for example Zimbabwe's trade with China.
Marketers need to identify trading patterns between nations and product trading
patterns. East-West trade and West to the former communist bloc is likely to
grow at the expense of North-South trade.
Table 2.2 Structure of production
Distribution of GDP %
|
||||||||||
Country
|
GDP $ m
|
Agriculture
|
Industry
|
Manufacturing
|
Services
|
|||||
1970
|
1992
|
1970
|
1992
|
1970
|
1992
|
1970
|
1992
|
1970
|
1992
|
|
Zimbabwe
|
1415
|
5350
|
15
|
22
|
36
|
35
|
21
|
30
|
49
|
43
|
Thailand
|
7087
|
110337
|
26
|
12
|
25
|
39
|
16
|
28
|
49
|
49
|
This pattern is repeated throughout Africa and
Asia in general.
Comparative costs - comparative advantage
As discussed in chapter one, price has been
called the immediate basis for international trade - cheaper prices based on
different cost structures, especially labour. Countries trade because they
produce and export goods in which they enjoy a greater comparative advantage
and import goods in which they have a least comparative advantage. A further
refinement of this is the international product cycle discussed fully in
chapter one.
Balance of payments
This is the measure of all economic transactions
between one nation and another. The balance of payments is made up of the
current account, showing trade in goods and services; and the capital account,
which shows financial transactions. In 1989, after official transfers, the USA
had a US$ 109,242 million deficit on its current account, Japan had a $ 131,400
million surplus, Tanzania a $ 778,5 million deficit and Zimbabwe a $ 2,783
million deficit.
The balance of payments account helps marketers
select the location of supply for foreign markets and the selection of markets.
The capital account may show the nations which have control restrictions and
hence be difficult to deal with. In this regard, African nations are generally
disadvantaged.
Government policy
This refers to the government measures and
regulations which have a bearing on trade - tariffs, quotas, exchange controls
and invisible tariffs. These can cause formidable barriers to marketers and
will be dealt with at length later.
World Institutions
Institutions like GATT and the United Nations
Conference on Trade and Development (UNCTAD) have been of help to countries in
their development. GATT had over 120 members and associated and accounted for
80% of world trade. Its intention was to create a general system of preferences
and negotiate tariffs for members' products on a nondiscriminant basis and
provide a forum for consultation. The Kennedy Round of the 1960s was superseded
by the Tokyo round of the 1970s and that by the current Uruguay round signed in
1994.
UNCTAD furthers the development of emerging nations.
It seeks to improve the prices of primary goods exports through commodity
agreements. It also established a tariff preference system favouring developing
nations.
Regionalism
Regionalism is a major and important trade
development. Some regional groupings have either market (EU) or command (China)
or mixed economies (former communist countries and The Preferential Trade Area
(PTA) and The Southern African Development Community (SADC). With these
developments, free trade zones have occurred (all internal barriers abolished)
economic unions (the EU), export pricing zones (Mauritius) and other schemes.
The major regional economic organisations are: Acuerdo de Cartegna (Andean
Group), Association of South East Nations (ASEAN), Asian Pacific Rim countries (APC),
Caribbean Community and Common Market (CARICOM), Central American Common Market
(Mercado Comùn Centro Americano), Council of Arab Economic Unity, Economic
Community of West African States (ECOWAS), the European Union (EU), Latin
American Integration Association, Organisation Commune Africane et Mauricienne,
Preferential Trade Area (PTA) and the Southern African Development Conference
(SADC). A principal collapse has been the Council for Economic Assistance
(COMECON) with the disappearance of the communist bloc in Eastern Europe. Of
these blocs, the EU (reporting 33% of world trade) and EFTA are very important.
To counteract the growing power of the EU, the USA and Canada have entered into
an agreement with Mexico as a willing partner and created the North American
Free Trade Agreement (NAFTA).
These blocs are of various form, power,
influence and success. ASEAN is a collaboration of industry and agriculture,
PTA in tariffs. SADC and PTA have had historically little impact but are now
beginning to grow in importance in view of the normalisation of South Africa.
The EU, North American Union and the Pacific Rim Union will pose the greatest
power blocs in future years. Many developing countries have entered into
trading blocks as a reaction against loss of developed country markets or as a
base to build economic integration and markets.
The development of trading blocs can bring
headaches and advantages to trade. It is worth comparing the European Union, a
relatively well developed bloc, with SADC and the PTA which are well developed.
SADC and PTA are described in a little detail in appendix one and two of this
chapter.
The international financial system
Global financing operations based on the gold
standard gave rise to instability, so Bretton Woods, post World War II, saw the
nascence of the International Monetary Fund (IMF) and World Bank.
The IMF deals with the International Monetary
System. Involved countries joined IMF to establish a par value for other
countries in terms of the US dollar and maintain it with +/- one percent of
that value. The system fell down because large corporations were holding more
funds than banks and so a "float" set in. IMF began to fade somewhat.
However it still lends, on a short term basis, to countries with payment
problems to help them continue trading.
The World Bank, or International Bank for
Reconstruction and Development (IBRD) deals with international capital. It
provides long term capital to aid economic development. Currently it has about
US$ 22 billion annually for this operation. The role of the World Bank has
often been criticised especially on its conditionalities for loans to Africa in
funding structural adjustment and trade liberalisation programmes. However many
developing countries require institutional funding to help them with trade and
balance payment problems.
Other major lenders include the EU and bilateral
donors and agencies who have provided money for developmental projects. A
principal donor is the United States Agency for International Development (USAID).
The United States of America
Since the Gulf War of 1991, the USA has played
an increasingly important role in the economic affairs of the world. Since that
time, itself, and its agency USAID, have increasingly flexed their muscles.
However, the balance of economic power in recent years, has shifted towards the
Pacific rim, especially Japan and the Asian Tigers.
Individual economies
Whilst the global factors listed above have
aided the development of a world economy, marketers must consider carefully individual
economies. A study of these helps answer the questions - how big is the market
and what is it like? Currently there are over 200 individual countries in the
world.
Size of market
General indications of market size include
population (growth rates and distribution) and income (distribution, per
capita, GNP).
a) Population: In general, the larger the population, the bigger the market. However
there is no correlation between income level and population. China has 2
billion plus people, India 1 billion, Zimbabwe 8 million. However, they do not
have the same income per capita as the USA or UK. In 1993 the USA population of
252.2 million, the UK 57.4 million and Africa 400 million, were respectively
6%, 1.5% and 9% of the world's population. However the USA and UK had an
infinitely higher GNP per capita income than Africa, US$ 22,520, UK $17,300 and
Africa $ 270 respectively (1989).
Different countries experience different
population growth rates. In the early 90s, the UK had an annual growth rate of
0.1%, the Ivory Coast 6%, and Africa in general, 3% per annum. Low income
countries and oil rich countries have the largest growth rates. Growth rates
have a dual edge - they are good for sales but bad for world resources. The
world population, currently standing at 5 billion is experiencing a rapid
growth rate. It is expected to reach 7 billion by the end of the century. The
strain on world resources is likely to be very large. The distribution of the
population is also important. Different age groups have different needs and
population density should mean good market potential, the higher the better.
The Netherlands have 1000 persons per square mile, Bangladesh 1,791 but the USA
only 65 persons per square mile. However, the USA spends more per capita than
Bangladesh
b) Income: No one
has yet been able to assess accurately the impact of the AIDS pandemic on world
population and economic activity. South Africa estimates AIDS will cost South
African industry R16.7 billion by the year 2000 (Business Herald - Nov.
24.1994). Suffice to say, unless a cure or prevention is found, it could be
serious, especially in Africa and South East Asia, the world's "hot
spots"
Income is the most important variable affecting
market potential. Markets are not markets without money to spend.
Interestingly, there is an inverse correlation between GNP per capita and
income elasticity of demand for food. Asia has a 0.9 income elasticity of
demand and the USA 0.16.
The distribution of income is very uneven. In
Kenya the lowest 20% of the population receive less then 3% of national
resource. This bimodal distribution of income means marketers must analyse two
economies in a country. Per capita measures have therefore, many limitations.
Per capita judges a country's level of economic development and its degree of
modernisation and progress in health, education and welfare. Half of the
world's population lives with an average per capita income of only US$ 270. Per
capita is usually reflected in US dollars and is only valid for comparison if
exchange rates are equal. Exchange rates reflect international goods and
services in a country but not domestic consumption.
Another limitation of per capita measures is the
lack of comparability with the figures themselves. The US budget contains food,
clothing and shelter. In many of the less developed nations these items may be
largely self provided and therefore not reflected in national income tables.
Also in the UK, snow equipment is included, and this is not, obviously, in
Africa and parts of Asia. Other limitations are that sales of goods are not
well correlated with per capita income and if there is great unevenness in
income distribution, per capita figures are less meaningful. Product saturation
can be equally troublesome in affecting market potential. A vacuum cleaner in
the Netherlands has a 95% household penetration rate, but only 7% in Italy.
Gross National Product is a better indicator of
potential than Gross Domestic Product as GDP includes more than
"product". World GNP figures reveal the concentration of wealth in
the three nations, the USA, Japan and Western Europe. Africa trails far behind
(see table 2.3)3.
However, when evaluating markets it is wise to
consider individual product areas. For example, Belgium's GNP is better than
India's but India's, consumption of steel is 3 times that of Belgium's.
Table 2.3 GDP and GNP of selected countries
GDP
US$ bn |
%
of World |
GNP
US$ bn |
%
of World |
|
USA
|
5670
|
35
|
3000
|
29
|
UK
|
903
|
6
|
540
|
5
|
Africa
|
322
|
3
|
220
|
3
|
The United Nations International Comparison
Project (ICP) developed a sophisticated method for measuring total expenditure,
which has been used to derive more reliable and directly comparable estimates
of per capita income. The World Bank has published a comparison of ICP findings
with its own Atlas figures based on the exchange rate conversion. The use of
exchange rates tends to distort real income or standard of living measures.
The nature of economy
More than money makes up an economy's economic
environment. Natural resources -raw materials now and in the future are
important. If synthetic gold or tobacco were developed or, in the case of the
latter, became unfashionable, Zimbabwe's economy would be ruined.
Topography may produce two, three or more submarkets
in a country. Zambia, for example, has "rural" and "urban"
areas with different needs and wants.
Extremes of climate - like the Southern African
drought in 1992 can devastate economies and derail any economic development
plans and exports. Simply, products are not available to export, because they
are being consumed by the domestic economy.
The nature of economic activity
Economic activity is often correlated to the
type of economic activity. Various methods have been derived to classify
economies. These are:
Stages of market development
Global markets are at different stages of
development which can be divided into five categories based on the criterion of
gross national product per capita.
i) Preindustrial countries - incomes
less than US$ 400 GNP per capita. Limited industrialisation, low literacy
rates, high birth rates, heavy reliance on foreign aid, political instability.
Parts of Sub-Saharan Africa. Little market potential.
ii) Less developed countries - per
capita between US$ 401 and US$ 1,635. Early stages of industrialisation,
growing domestic market, mature product markets, increasing competitive threat.
iii) Developing countries - per
capita income between US$ 1,636 and US $ 5,500. Decrease in percentage of
agricultural workers, industrialisation, rising wages, high literacy rates,
lower wage rates than developed countries, formidable competitors.
iv) Industrialised countries - per
capita income between US$ 5,501 and US$ 10,000. Moving towards post
industrialisation, high standard of living.
v) Advanced countries - per
capita income in excess of US$ 10,000. Post industrialisation, information
processors, knowledge based, less machine based. Product opportunities are in
new products, innovations and raw materials plus fresh foods.
The World Bank classification
The World Bank has drawn up a classification of
economies based on GNP per capita.
i) Low income economies, China and India, other
low-income-GNP per capita income of between US$ 675 or less, 41 nations
including Tanzania, Kenya, Zambia and Malawi.
ii) Middle income economies, lower middle
income, GNP per capita of between US$ 676 and US$ 2,695, 40 nations including
Zimbabwe, Mexico and Thailand.
iii) Upper middle income, GNP per capita of
between US$ 2,676 and US$ 8,355, 17 nations including Brazil, Portugal and
Greece.
iv) High income economies, OECD members and
others, GNP per capita of between US$ 8,356 or more, 24 nations including UK
and the USA.
v) Other economies - communist bloc.
Mozambique and Switzerland are the two extreme
ends of the spectrum with US$ 80 per capita and US$ 29,880 per capita
respectively.
Rostow: Whilst economic
in nature, Rostow (1971) produced a five stage model of economic takeoff:
· Stage 1
traditional society, little increase in productivity, no modern science
application systematically, low level of literacy
· Stage 2 the preconditions of takeoff, modern techniques in
agriculture and production, developments in infrastructure and social
institutions
· Stage 3 the takeoff, normal growth patterns, rapid agricultural
and industrial modernisation, good social environment.
· Stage 4 the drive to maturity, modern technology applied to all
fronts, international involvement, can produce anything
· Stage 5 the age of high mass consumption, production of durable
goods and services, large amounts of
These classifications enable marketers to assess
where and how to operate in countries which may display the stage
characteristics. For example African exporters would look to stage 4 and 5
economies to obtain the greatest revenue opportunities for other produce.
Another way to assess the market alternatives to
a potential global marketer is to look at the origin of its national product -
is it farm or factory generated? Farm workers tend to have low incomes.
Input-output tables provide other insights into a country's potential, that is,
what inputs go into a particular industry's output? What combination of labour,
materials and equipment?
Infrastructure
Infrastructure is a very important element in
considering whether to market in a country or not.
Transportation, for example, is vital. Zambia
and Zimbabwe are landlocked and have relatively poor transport facilities.
Tanzania, whilst having direct access to the coast, has also a relatively poor
internal rural infrastructure. Chaos can therefore ensue, especially during the
rainy season. Without being able to get produce to the point of exportation,
countries will suffer poor export performance accordingly.
Energy consumption shows the overall
industrialisation of a society as does its infrastructure. The less energy is
consumed, the less likely the development of the market resulting in a not too
attractive market proposition.
Communications are essential. India has only
some 10 million telephones to a population of 1 billion people. Media
availability is important. Zambia has 680 radios per 1000 population, France
2,059 per 1000. Malawi has no domestic television service but access to
satellite television.
Commercial infrastructure is also vital - banks,
accountants, advertising agencies and other services. Without these "
transaction " facilities, exporting cannot take place.
Urbanisation
Differences exist between "urban" and
"country" dwellers. City dwellers may have more income, more
developed communications and access to new products. Developing countries tend
to suffer from rural drift, but without the accompanying incomes characteristic
of developed countries. So when assessing market opportunities widespread
urbanisation is no guarantee of a good market potential.
Other
Inflation causes havoc with economies and
foreign exchange. For example Zambia has an unofficial inflation rate of over
100%, which makes it difficult and expensive to access capital for investment
and obtain pre-export finance.
The role of Government is essential. Some
encourage joint ventures and investment, others do not. The number of
international companies operating in an economy can be both good and bad.
Japan's investment in the USA and UK is high, creating jobs, but gives rise to
negative feelings because access to Japan is not so easy. This has led to calls
for protectionism. Similarly, flows from developed countries to less developed
ones are generally one way. This leads to instability in the underdeveloped
country because it has no "hostage" leverage.
Repatriation or transfer of dividends can be an
issue which can detract from investment if negative facilities exist. This can
seriously undermine economic development and trade.
Many African countries are undergoing structural
adjustment and trade liberalisation programmes. In some cases, these have met
with limited success. They can create market opportunities, but they also can
cause internal economic upheavals for long periods of time, detracting from
investment by outsiders and limiting the export opportunities, especially if
interest rates rise, as is often the case.
The economic environment is one of the major
determinants of market potential and opportunity. Careful analysis of this,
particularly income and the stage of economic development is essential. Failure
to do so will lead, at best, to sub optimal opportunity and, at worst, to
disaster. Less developed countries like Africa, are at a disadvantage, due to
their primary material export dependence. It behoves these nations in the
continent to derive policies and strategies for rapid industrialisation, or
forever to be at the mercy of world demand and prices.
Economic factors are just some of the
"environmental uncontrollables" which marketers must consider when
deciding to market globally. The global economy can be traced back hundreds of
years when traders from the east and west came together to exchange goods.
Through the legacy of mercantilism up to the current GATT Round, marketers have
had to contend with changes and developments in the economic environment,
including the growth of regional economic blocs, all aimed at increasing
cooperation between the grouped nations.
Markets differ widely in their size and state of
development world wide. It would be too easy to classify these markets as
"rich" or "poor", "developed" or "less
developed", although this is often done for ease of analysis. Countries
show great within country differences also and marketers have to be aware in
assessing market potential that they do not use general descriptions of nations
as criteria of whether to, or whether not to, open trade negotiations.
Balance of payments
|
Gross National Product
|
National income
|
General Agreement on Tariffs and Trade
|
International Monetary Fund
|
World Bank
|
Gross Domestic Product
|
Mercantilism
|
World Trade Organisation
|
1. In what way has the global economy changed in
the last 50 years? Why?
2. Discuss the various measures for assessing
the size of market potential. What are the problems in the assessment? Give
examples.
1. The Global economy has experienced the
following changes
a) Capital movements rather than trade have become the driving force of
the global economy.
b) production has become "uncoupled" from employment.
c) primary products have become uncoupled from the industrial economy.
d) The world economy is in control.
b) production has become "uncoupled" from employment.
c) primary products have become uncoupled from the industrial economy.
d) The world economy is in control.
Reasons
a) World trade is some US$ 3 trillion, whereas
the London Eurodollar market - alone is some US$ 75 billion per annum and
foreign exchange transactions were US$35 billion per annum. Interest and
exchange rate - gains are often more lucrative than investment in goods and
services manufacturing.
b) Employment is in decline while manufacturing
either grows or remains static. Sectors are becoming more productive, with
injections of capital equipment and new technologies.
c) Commodity prices may collapse but industrial
economies can be unaffected.
d) World trade is recognised as vital to
economies as domestic growth slows down and opportunities overseas grow. Growth
achievable in international trade is often at a greater rate than domestically
and the returns higher. (Ask students to find the figures which can be gained
for rates of growth and returns on capital employed in International trade.)
2. Measures for assessing market potential are
a) Size of market - population, income
(GNP/capita)
b) Nature of the economy - urban and rural
c) Nature of economic activity-preindustrial, less developed, developing, industrial, advanced.
b) Nature of the economy - urban and rural
c) Nature of economic activity-preindustrial, less developed, developing, industrial, advanced.
· World Bank classification
· Rostow's five state economic tale off model.
· Rostow's five state economic tale off model.
d) Infrastructure
e) Inflation
f) Role of Government - laws, rules, regulations, stability
g) Economic environment - confidence, history, stability.
e) Inflation
f) Role of Government - laws, rules, regulations, stability
g) Economic environment - confidence, history, stability.
Problems in assessment
a) Data too general and non specific
b) Data may be out of date
c) There may be lucrative segments hidden by the general data
d) Data may be invalidated or false
e) Data may be incorrectly gathered and reported
f) Units of reporting may differ from country to country
g) Data gaps or nonavailability.
b) Data may be out of date
c) There may be lucrative segments hidden by the general data
d) Data may be invalidated or false
e) Data may be incorrectly gathered and reported
f) Units of reporting may differ from country to country
g) Data gaps or nonavailability.
1. Dixie. G.R. "European Union Case
Study". Network and Centre for Agricultural Marketing Training in Eastern
and Southern Africa, Zimbabwe 1994
2. "Guiness World Data Book", 1993
3. Keegan, W.J. "Global Marketing
Management", 4th ed. Prentice Hall International Edition, 1989.
4. Masanzu, F. "SADC and PTA". FAO
consultant, Network and Centre for Agricultural Marketing Training in Eastern
and Southern Africa, Zimbabwe 1994
5. Terpstra, V. "International
Marketing", 4th ed. The Dryden Press, 1987
6. World Bank. "World Development Report
1991", The Challenge of Development. Oxford University Press, 1991.
7. Rostow. W. W. "The Strategies of
Economic Growth" 2nd Edition, London: Cambridge University Press, 1971
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