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Economic Development and the Americas - Coggle Diagram
Economic Development and the Americas
Marketing and Economic Development
Economic development generally means an increase in national production reflected by an increase in the average per capita GDP or GNI.
Stages of Economic Development
MDCs (more-developed countries).
Industrialized countries with high per capita incomes, such as Canada, England, France, Germany, Japan, and the United States.
LDCs (less-developed countries).
Industrially developing countries just entering world trade, many of which are in Asia and Latin America, with relatively low per capita incomes.
LLDCs (least-developed countries).
Industrially underdeveloped, agrarian, subsistence societies with rural populations, extremely low per capita income levels, and little world trade involvement.
Found in Central Africa and parts of Asia. Violence and the potential for violence are often associated with LLDCs.
Newly industrialized countries (NICs)
Countries that are experiencing rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs
Economic Growth Factors
Political stability
Economic and legal reforms.
Entrepreneurship
Planning
Outward orientation
Factors of production
Industries targeted for growth
Incentives to force a high domestic rate of savings
Privatization of state-owned enterprises
Infrastructure and Development
Infrastructure represents types of capital goods that serve the activities of many industries.
Paved roads, railroads, seaports, communication networks, financial networks, and energy supplies
Marketing in Developing Countries
Level of Market Development
The level of market development roughly parallels the stages of economic development.
The more developed an economy, the greater the variety of marketing functions demanded, and the more sophisticated and specialized the institutions become to perform marketing functions.
Demand in Developing Countries
Estimating market potential in less-developed countries involves additional challenges.
Most of the difficulty arises from the coexistence of three distinct kinds markets in each country:
the traditional rural/agricultural sector
the modern urban/high-income sector
the often very large transitional sector usually represented by low-income urban slums.
Big Emerging Markets
Big emerging markets share a number of important traits
All geographically large.
Have significant populations.
Represent sizable markets for a wide range of products.
Have strong rates of growth or the potential for significant growth.
Have undertaken significant programs of economic reform.
Are of major political importance within their regions.
Are “regional economic drivers.”
Will engender further expansion in neighboring markets as they grow.
The BEMs differ from other developing countries in that they import more than smaller markets and more than economies of similar size.
The Americas
North American Free Trade Agreement (NAFTA)
Preceding its creation the United States and Canada had the world’s largest bilateral trade agreement
United States–Central American Free Trade Agreement– Dominican Republic Free Trade Agreement (DR-CAFTA)
Southern Cone Free Trade Area (Mercosur)
Latin American Progress
A political and economic revolution has occurred in Latin America over the past three decades.