But the issue is: Is it good strategic planning to use the per capita income and consumption data vis-a-vis population size as a basis of forecasting the size of a countrys market? This paper attempts to explore this proposition and to determine whether indeed it is or whether there are other better approaches that can help the international marketer make better decisions in entering a foreign market.
Per capita income is derived from the concept of gross domestic product, which is the standard measure of an economys total output (Baumol and Blinder 2001). But such output only make sense if producers can sell them; therefore the concept of aggregate demand is relevant. Aggregate demand is the total amount that all consumers, business firms, government agencies, and foreigners wish to spend on all of a countrys goods and services. It also depends on consumer incomes, government decisions, and events or developments abroad. Aggregate demand can be broken down into the following:
b. Investment spending. This is the total amount that firms expend on physical assets such as land, factories, machinery and equipment, and inventories. . These assets add to productive capacity, leading to additional demand for goods and services.
By adding up all these components, we are able to obtain the aggregate demand and we can summarize it as the sum of all consumption, investment, government purchases, and net balance of exports and imports. Sommers (1993) and other economists take the view that the total output of an economic system is exactly equal to the total demand in the system, and that the GDP can also be referred to as gross domestic expenditure.
From this aggregate is derived the concept of national income - which is the total income of all individuals in the economy. It is defined as the sum of the incomes that individuals in the economy earn in the form of wages, interest, rents, and profits. It ...
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(Global Business Essay Example | Topics and Well Written Essays - 2500 Words)
“Global Business Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/miscellaneous/384370-global-business.
The paper tries to address the issues faced by the companies in the management of the company. The paper also discusses the guidelines laid down by the United Nations Global Compact in maintain international standard of management of resources along with the impact of good governance on the health of a business in the global world.
This grouping may further be described as cultural and economic bound. Modern cultures are driven by the market, as well as competitive post industrialized systems of an economy. The United States is an example of a modern-based culture. In contrast, countries like China are tradition- based, which is featured with the agrarian centralized, agrarian, cooperative, and pre-industrialized systems.
Among the tools useful in evaluating the viability of both a business and the industry, include the SWOT and the PEST analyses. SWOT analysis investigates the strengths, weaknesses, opportunities and threats the business may face. The strengths and weakness are internal and the business therefore has absolute control over them.
The PESTLE analysis of the project clearly explains the external environment of business faced by the newspaper industry in developed countries. Then the SWOT of The Guardian will help to analyze the internal working of a newspaper company in U.K. The force field analysis would help to implicitly analyze the possible business competition experienced by the newspaper industry due to the growing importance given on the internet media usage.
Therefore, in order to cope up with such changing trends and patterns, the organizational entrepreneurs are trying to devote high level of concentration over research and development in order to present varied types of inventive products and services. This might help an organization to retain its market share and image at a stable condition in the market among many other rival players.
In an era of increasingly intense competition, global markets, changing technology, and regulatory reform, there has been a good deal of attention given to how firms act in times of fast-changing environmental conditions. Over the last two decades there has been a profound shift in thinking about the role that people play in the success of the business, with a growing view that the management of people is a key organizational capability and one, which should be highly integrated with the strategic aims of the business.
With advancements such as video conferencing and chat rooms, communication has taken wide strides towards reducing the world to a single village as it is said. Many aspects on the global business front have contributed to the success of multinational companies
cultural differences of certain regions are acting as barrier to business expansion and companies are required to do good feasibility study before joining these markets more so in Asian continent. There are major differences in these region compared to the United States of