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International Economic Environment

The economic environment refers to all the economic factors that influence a business's operations. A business depends on the economic environment for inputs and to sell finished goods. An emerging market is a developing country that is becoming more economically advanced but does not meet standards to qualify as a developed market yet. Examples include Brazil, Russia, India, and China. Developing markets are poorer countries seeking greater economic and social advancement, though individual citizens may not enjoy the same prosperity as in developed nations. There are over 2 billion people living in poverty globally, comprising two-thirds of the current marketplace. International marketers must conduct research, create buying power through credit, develop local solutions, improve access, and shape aspirations to succeed in developing markets.

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14 views11 pages

International Economic Environment

The economic environment refers to all the economic factors that influence a business's operations. A business depends on the economic environment for inputs and to sell finished goods. An emerging market is a developing country that is becoming more economically advanced but does not meet standards to qualify as a developed market yet. Examples include Brazil, Russia, India, and China. Developing markets are poorer countries seeking greater economic and social advancement, though individual citizens may not enjoy the same prosperity as in developed nations. There are over 2 billion people living in poverty globally, comprising two-thirds of the current marketplace. International marketers must conduct research, create buying power through credit, develop local solutions, improve access, and shape aspirations to succeed in developing markets.

Uploaded by

vijay soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ECONOMIC

ENVIRONMENT

1
INTRODUCTION
• Refers to all those economic factors, which have a bearing on the
functioning of a business

• Business depends on the economic environment for all the needed


inputs

• It also depends on the economic environment to sell the finished


goods

2
BOTTOM
OF
PYRAMID

3
Emerging Markets

• An emerging market is a country that has some characteristics of


a developed market, but does not meet standards to be a
developed market.

• The ‘Emerging markets’ is a term used by commentators to


group together some of these awakening giants. You may have
heard of the BRIC economies - Brazil, Russia, India and China.

4
World GDP forecast for the Rapid Emerging Countries

PPP :- Public–Private Partnership

5
Developing Markets
• A poor agricultural country that is seeking to become more advanced
economically and socially.

• A developing market is the opposite of a developed market. Surprisingly, China


is a developing market because, while it has the second highest GDP in the
world, it also has the largest population. The average citizen in China does not
have close to the same level of economic prosperity as one would find in the
United States. Examples: Argentina, Nigeria, Jordan, Vietnam, Hungary, North
Korea, India
6
• Time to look at the 2 billion people in the world who live in poverty.
• They comprise of two third of the current market place
• Five element of success required for international marketer to take
advantage of and thrive in developing markets.
i. Research
ii. Create buying Power
iii. Local Solutions
iv. Improve access
v. Shape Aspiration
7
Research:
• Before you identify who you want to sell your product to, it is difficult to
understand their needs
• It is required to learn the needs and aspirations of the target populations.
• Example of landlines in India and rise of mobile phones
Create Buying Power:
• Without credit it is impossible for the major developing markets to make major
purchases.
• Increased availability of credit will give a further boost to consumption
• Example of Microfinance program in a developing markets have allowed to
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borrow with no property as collateral
Local Solutions:
• Localizing your brand is crucial to success, and this goes beyond the name and
advertising
• Example of P&G in China
Improve Access:
• Due to economic and physical isolation of poor communities providing access
can lead to a thriving business
• Example : In Bangladesh Grameen phone limited provide access to wireless
phones to villagers
Share aspirations:
• The biggest challenge in developing markets are in providing essential service
9
• In this case developing markets can be ideal settings for technological
innovations
10
THANK YOU !!!
11

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