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Chap 3 Marketing

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CHAP 3 MARKETING 


During history the economy of the world faced major changes 





























































The World Bank has developed a four-category classi cation system that uses per capita gross
national income (GNI) as a base.


Gross domestic product (GDP): a measure of a nation’s economic activity, as function of
Consumer spending (C), Investment spending (I), Government purchases (G), and Net Exports
(NX): C + I + G + NX = GDP


• Gross national income (GNI), comprises GDP plus income generated from nonresident sources.


• Gross national product (GNP) adds the value of output produced by citizens working and capital
abroad, minus transfers of net earnings by global companies operating in the country.


• As a practical matter, GNP, GDP, and GNI gures for many countries will be roughly the same.















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Approaches to evaluating global opportunities 




CLASSIC APPROACH

• Considers variables that point to the potential sales of a new market: • Gross domestic product

• • Consumer wealth levels (ex. GDP per capita)

• • Population size

• • Propensity to consume



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Cage model distance between countries increase with Distance approach 


Cage model distance that most a ects industries or products




































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Cage model can be impacted by di erent indicators and distance impact

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