GMS 522 Lecture Notes - Lecture 4: Moral Hazard, International Trade, Income Distribution
Document Summary
The economic environment: interest rates, inflation, exchange rates. The economic environment is an uncontrollable variable for the global marketer. These variables affect the demand for imported products an a country"s relative attractiveness for foreign investment. In assessing foreign markets, we need to examine: population indicator o market potential, demand for imported products linked to population size, ( look at slide for more notes) Because you can know how many can afford the product, implications for marketing strategy: depending on nature of product, you need yo know. Japan is the third largest country in the world: developed, technology, rich. Not the picture that emerges form the data. # of millionaires gone up from 10%, 16 million ( millionaires in japan) but at the same time, the % of the population with no savings is 23% ( of the population has no money) Exchange rate exchange rat is also important as it impacts the demand for imported goods and services.