Managing in a global economy by john marthinsen babson MBA chapter 01

Source: United Nations, Human Development Report 2005, http://hdr.undp.org/reports/view_reports... Total: Five Largest Developed Nations versus Five Largest Developing Nations Note: No r

Global Setting

Analysis

Source: United Nations, Human Development Report 2005, http://hdr.undp.org/reports/view_reports cfm?

type=1 (accessed March 25, 2006).

Total: Five Largest Developed Nations versus Five

Largest Developing Nations

Note: No real GDP statistic was available in 1975 for the Russian Federation Therefore, the Russian

Federation’s real GDP was assumed to be 9% of the BCIMR–developing nations’ total, which is approximately

what it was in 2004.

Source (population and real GDP statistics): World Bank Group, ‘‘World Development Indicators Online,’’

http://publications.worldbank.org/ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006).

* To make the comparisons more realistic, these figures are stated on a purchasing-power-parity (PPP) basis.

PPP is fully explained in the chapter ‘‘Long-Term Exchange Rate Movements and Comparative Advantage.’’

‘‘PPP-adjusted figures’’ correct for inflation rate and living cost differences among countries.

Note: No data were available for the Russian Federation for 1975.

Source: World Bank Group, ‘‘World Development Indicators Online,’’ http://publications.worldbank.org/

ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006).

Nations versus BCIMR–Developing Nations

Source: World Bank Group, ‘‘World Development Indicators Online,’’ http://publications.worldbank.org/

ecommerce/catalog/product?item_id=631625 (accessed March 25, 2006).

Demographic Characteristics

• Geography

• Population

• Health/Illiteracy

• Technology

• Important home pages

Real Goods Market

and Labor Market

• GDP/Income distribution

• Labor force

• Inflation rate

• Leading economic indicators

Loanable Funds Market (Interest Rates)

• Central bank name

• Money supply

• Gross saving/GDP

• General budget deficit or

surplus/GDP

• Interest rates

Foreign Exchange Market

• Currency: Code

• Exchange rate

• Exchange rate system

• Balance of payments

Africa

South Africa

Eurasia

India

Japan

People’s Republic of China

Russian Federation

Turkey

Europe

France

Germany

Poland

United Kingdom

Middle East Saudi Arabia

North America Mexico

United States

South America Argentina

Brazil

Africa

• South Africa

Eurasia

• India

• Japan

• People’s Republic of China

• Russian Federation

• Turkey

Europe

• France

• Germany

• Poland

• United Kingdom

Middle East

• Saudi Arabia

North America

• Mexico

• United States

South America

• Argentina

• Brazil

15 Countries