GMS 522 Lecture Notes - Lecture 4: Trade Diversion, Emerging Markets, Trade Creation

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Carlyle Farrell

Document Summary

The economic environment is an uncontrollable variable for the global marketer. These variables affect the demand for i(cid:373)po(cid:396)ted p(cid:396)odu(cid:272)ts a(cid:374)d a (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:396)elati(cid:448)e attractiveness for foreign investment. In assessing foreign markets we need to examine the following: Market size: population is an indicator of market potential. Demand for imported product linked to population size: 7. 4 billion people on the planet in 2016 (world bank). 2050 (united nations): note: the (cid:271)ulk of the (cid:449)o(cid:396)ld"s populatio(cid:374) li(cid:448)es i(cid:374) lo(cid:449) a(cid:374)d (cid:373)iddle income countries. Only 16% live in high income countries: china and india are the most populous countries with 1. 4 and 1. 3 billion people (cid:396)espe(cid:272)ti(cid:448)el(cid:455). Co(cid:373)(cid:271)i(cid:374)ed the(cid:455) (cid:396)ep(cid:396)ese(cid:374)t al(cid:373)ost (cid:1008)(cid:1004)% of the (cid:449)o(cid:396)ld"s populatio(cid:374) (cid:894)wo(cid:396)ld ba(cid:374)k(cid:895). The(cid:455) (cid:396)ep(cid:396)ese(cid:374)t 7(cid:1004)% of asia"s populatio(cid:374: us has a population of 300 million. In 2016 the number of japanese millionaires stood at 2. 8 million (up 35% from 2015) At the same time the % of japanese with no savings is around 40%