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The Future
Chapter 20
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
The International Marketing
Environment
•
Conditions of Change
–
Change is increasing in speed as real-time access
to information and knowledge about suppliers,
customers, competitors and markets grows.
–
Change is universal-
political, financial,societal, and
technological.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Planned versus Market
Economies
•
Central European opportunities
–
Export controls have been reduced.
–
Demand for consumer products is high.
–
High demand for foreign direct investment.
•
Problems to be overcome
–
Lack knowledge about the rules and practices of market
economies and marketing.
–
Lack of protection from corruption and respect for property
rights and contractual agreements.
–
Outside investment will occur selectively.
–
Fear of outsiders will slow economic recovery.
–
Liquidity shortages will continue to impede trade
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
The International Financial
Environment
•
International debt and low commodity prices will slow
growth in LDCs.
•
Developed nations have strong market and security
incentives to help developing areas.
•
The U.S. dollar will continue as the predominant
international currency.
•
The market system of floating currency exchange rates for
rather than government actions will determine currency
valuations.
•
Shocks in one financial market will rapidly impact other
markets.
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Population Patterns
•
The rate of growth will put more emphasis on
population stabilization within governmental policies.
•
Population balance along with age could create
manpower shortages that will impact a country’s ability
to develop.
•
The expectation-reality gap will continue to plague
LDCs.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
The Technological Environment
•
Communications in all forms will
–
Become increasingly important as information
management becomes as important as the
information.
–
New information and data analysis technologies will
have major impact on business relationships.
•
The exponential growth in technology will
–
Be a volatile area of economic activity.
–
Create the need for strategic alliances to
share the enormous cost of new technology.