ECONOMIC DEVELOPMENT AND THE AMERICAS - Coggle Diagram
ECONOMIC DEVELOPMENT AND THE AMERICAS
TIME ZONE AND TRADE RELATIONSHIP
Most countries maintain good trade relationships with contiguous countries.
Virtual meetings are difficult to execute because of miles, time zone and cultural distances
Always jet lag is an important problem for make trades.
The Americas, Europe, and Asia are the multinational market regions with major trading blocks
Many American companies have organized their international operations according to geographic or temporal constraints.
The way the countries will trade and prosper in the 21st century is changing because of:
• The liberalization of trade and investment policies in developing countries
• The transfer of public-sector enterprises to the private sector
• Transition from socialist to market-driven economies
• The rapid development of regional market alliances
STAGES OF ECONOMIC DEVELOPMENT
: Industrialized countries with high per capita incomes, such as Canada, England, France, Germany, Japan, and the United States.
: industrially underdeveloped, agrarian, subsistence societies with rural populations with extremely low per capita income levels, and little world trade involvement, such as some countries in Central Africa and parts of Asia
: industrially developing countries just entering world trade with relatively low per capita incomes, such as many countries in Asia and Latin America
Information technology, the internet and E.D
A country’s investment in information technology is an important key to economic growth, It accelerates the process of economic growth by speeding up the diffusion of new technologies to emerging economies.
Infrastructure and development
Infrastructure represents capital goods that serve the activities of many industries and it is a crucial component of the uncontrollable elements facing marketers.
It directly affects a country’s economic growth potential.
Infrastructure is a crucial component of the uncontrollable elements facing marketers.
Some factors that make countries grown faster
Political stability in policies affecting their development.
• Planning and entrepreneurship.
Industries targeted for growth and production.
Adjustments in Emerging Markets
Chronic shortage of resources
The Americas – CFTA
They established the United States–Canada Free Trade Area (CFTA), designed to eliminate all trade barriers between them.
The CFTA created a single, continental commercial market for all goods and most services; It provided only for the elimination of tariffs and other trade barriers without involving any political union
The United States and Canada had the world’s largest bilateral trade agreement. Each was the other’s largest trading partner
Demand in Developing Countries
One of the greatest challenges of the 21st century is to manage and market to the transitional sector in developing countries.
The companies that invest when it is difficult and initially unprofitable will benefit in the future from emerging markets in Latin America and elsewhere.
Estimating market potential and devising useful segmentation strategies in less-developed countries involve challenges
The United States, Canada, and Mexico need one another to compete more effectively in world markets, and they need mutual assurances that their already dominant trading positions in the others’ markets are safe from protection pressures
NAFTA was ratified and became effective in 1994
NAFTA required the three countries to remove all tariffs and barriers to trade over 15 years
Southern Cone Free Trade Area (Mercosur)
With the addition of Bolivia and Chile in 1996, Mercosur became a market of 220 million people with a combined GDP of nearly $1 trillion and the third largest free trade area in the world
Mercosur has become the most influential and successful free trade area in South America
Is the second-largest common-market agreement in the Americas after NAFTA.