Ch 9 Infrastructure of Selected Countries

1
Chapter 9
Emerging Markets
2
Stages of Economic Development
1. The Traditional Society 2. The Pre Conditions
for Take-off 3. The Take-Off 4. The Drive to
Maturity 5. The Age of High Mass Consumption
SOURCES Walt W. Rostow, The Stages of Economic
Growth 2d ed. (London Cambridge University
Press, 1971), p.10.
3
United Nations Economic Development System
More-Developed Countries (MDC)
Less-Developed Countries (LDC)
Least-Developed Countries (LLDC)
4
Newly Industrialized Countries Growth Factors
? Political Stability ? Economic, Political, and
Legal Reforms ? Entrepreneurship ? Central
Planning ? Outward Orientation ? Factors of
Production ? Industries Targeted for Growth ?
Financial Incentives ? Privatized State-Owned
Enterprises ? Large, Accessible Markets ? Low
Tariffs
5
Infrastructure of Selected Countries
SOURCES "Big Emerging Markets," Business
America, Special Issue 1994, pp. 59-65. For
additional information, see International
Marketing and Statistics, 1997 (London
Euromonitor Publications, 1997) and "Indicators
of Market Size for 115 Countries, Crossborder
Monitor August 27, 1997, p.4.
6
Common Traits of Big Emerging Markets
? Are physically large. ? Have significant
populations. ? Represent considerable markets
for a wide range of products. ? Have strong
rates of growth or the potential for significant
growth. ? Have undertaken significant programs
or economic reform. ? Are of major political
importance within their regions. ? Are "Regional
Economic Drivers". ? Will engender further
expansion in neighboring markets as they grow.
7
Big Emerging Markets
Population GDP GDP Trade (millions) (
billions) (per capita) ( billions)
AsiaASEAN 413.7 508.4 12,192 464.6CEA
(Chinese Economic Area) 1,188.0 435.6 367 135.9
India 870.0 238.3 274 42.2South
Korea 43.7 296.8 6,799 150.6 Latin
AmericaMexico 89.5 333.3 3,722 85.9 Argentina 33
.1 228.8 6,912 21.2 Brazil 156.8 409.2 2,609 55.
8 AfricaSouth Africa 39.8 114.8 2,882 17.1 Europe
Poland 38.4 83.6 2,178 35.6Turkey 58.8 156.0 2,
747 38.9 Possible AdditionsColombia 33.4 43.5 1,3
03 12.3Venezuela 20.3 60.4 2,984 25.2
Imports and exports. ASEAN includes Brunei,
Indonesia, Malaysia, Philippines, Singapore,
Thailand, Vietnam. CEA consists of the provinces
of Southern China, Hong Kong, and
Taiwan. SOURCES "Big Emerging Markets,"
Business America, Special Issue 1994, pp.
59-65. For additional information, see
"Indicators of Market Size for 115 Countries,
Crossborder Monitor, August 27, 1997, p.4.
8
The Americas
9
Economic and Social Data for Selected Countries
Consumer Spending Hospital Number
Literacy Tourism Food Percent Clothing Percent B
eds per of (Percent) Receipts ( million) of (
million) of (000s) Doctors (
million) Country Total Total Population
United States 741,340 18.1 221,800 5.4 5.1 5
60,300 99.5 45,579 Argentina 16,952 38.8
2,332 5.3 5.3 96,000 93.9 2,336 Brazil
81,934 31.2 12,799 4.9 3.5 169,488 77.8 1,559
Colombia 9,264 35.2 1,597 6.1 1.5 29,353 85.2
410 Mexico 57,900 33.7 12,066 7.0 0.7 130,000 8
7.6 4,355 Venezuela 15,501 43.2 3,679 10.2 2.
6 28,400 84.7 36.5
Percent of all consumer spending. In U.S.
dollars, basis 1988.
10
Eastern Europe and the Baltic States
Gulf of Finland
BalticSea
BlackSea
Adriatic Sea
TyrmenianSea
AegeanSea
11
Eastern European Markets
Population GDP GDP Exports Imports (millions) (
billions) (per capita) ( millions) ( millions)
Albania 3.28 2.7 820 80
147 Bosnia/Hercegovina () 2.66 0.8 300 NA NA Bul
garia 9.00 11.3 1,336 4,273 5,596 Croatia
() 4.78 26.3 5,600 4,633 7,582 Czech
() 10.30 45.7 4,421 17,338 23,255 Hungary 10.30
35.4 3,435 12,540 15,073 Macedonia() 2.05 4.8 2,4
00 1,244 1,420 Poland 38.40 83.6 2,178 22,892 29,
052 Romania 22.80 40.7 1794 7,516 9,256 Slovakia(
) 5.27 9.3 1,763 8,585 9,070 Slovenia() 1.96 21.
0 10,700 8,268 9,452
() Former republics of Yugoslavia. () Former
republics of Czechoslovakia.
12
Asia
13
Average Monthly Expenditures for Chinese
Households National and Urban Areas - 1994
National Urban Areas
Food (includes eating out) 22.10 38.00 Savings 1
1.40 17.00 Clothing 5.60 9.00 Child's
Education 4.70 7.00 Home (includes Rent
Utilities) 4.30 8.20 Daily Goods other than
Food 3.50 4.80 Medical Expenses
Drugs 2.30 4.00 Entertainment 1.30 3.20
SOURCE Gallup China.
14
Asian Markets - Selected Countries
Population GDP GDP Exports Imports (millions) (
billions) (per capita) ( millions) ( millions)
Australia 18.1 290.7 347.6 52,966
61,347 China 1,205 697 578 148,755 132,007 Hong
Kong 6.2 140.2 22,613 173,546 192,764 India
935.4 328.4 351 30,537 34,456 Indonesia 193.8 198
.1 1,022 43,285 39,456 Japan 125.6 5110.5 40,689
443,000 335,871 South Korea 44.9 455.5 10,144 125
,365 135,153 Taiwan 21.1 260.2 12,274 111,837 103,
652
SOURCES For additional information, see
"Indicators of Market Size for 115 Countries,"
Crossborder Monitor, August 27, 1997 and
International Marketing Data and Statistics, 1997
(London Euromonitor Publications, 1997).
15
Capitalism with Chinese Characters Jiang Zemins
Reform Agenda
? Restructure state enterprises. SOEs account for
about two-fifths of the industrial output but
soak up four-fifths of investment. ? Strengthen
financial markets. Expand and ensure the
integrity of capital markets. ? Sell state
assets. Sell off all but 1,000 of Chinas 305,000
state enterprises and allow some to go
bankrupt. ? Build social services. Create
housing, pension programs, and other services to
relieve burdens on SOEs and to care for millions
who may lose jobs. ? Slash tariffs. Reduce
average tariffs to 17 percent in 1997 and to 15
percent by 2000 as part of Chinas bid to join
the World Trade Organization.
16
Living Standards in Selected Countries
Percent of Households Households Persons
per Piped Flush Electric (000) Household Water T
oilers Lighting
Brazil 38,434 4.05 73 76 69 Chile
3,216 4.35 70 59 88 China 357,064 3.40 90 NA
NA Colombia 8,482 4.14 76 64 87 Ecuador 2,626
4.36 52 33 62 Hong Kong 1,797 3.44 98 80 93
India 185,048 5.00 10 5 16 Indonesia
43,065 4.50 12 15 30 Japan 40,548 3.09 93 65
98 Peru 5,057 4.65 49 43 48 Philippines
12,750 5.37 NA NA NA Singapore 815 3.67 48 42 3
7 South Africa 13,300 3.37 96 35 90 United
States 100,308 2.62 99 99 99
SOURCES For additional data, see Demographic
Yearbook 1997 (New York United Nations, 1997)
and International Marketing Data Statistics,
18th ed. (London Euromonitor Publications,
1997).
17
Which of the Following have you Purchased in the
Past Three Months?
Product Percent Percent Percent Percent Percent Pe
rcent in in in in in in United Australia Brazil
Germany Japan United States Kingdom
Soft drinks 96 90 93 83 91 94 Fast-food
94 94 91 70 86 85 Athletic footwear 59 40 54 33 3
0 49 Blue jeans 56 39 62 45 42 44 Beer 46 50 60
46 57 57 Cigarettes 24 33 30 38 39 40
Among adults 18. Source Yankelovich Clancy
Shulman. SOURCE Nancy Giges, "Global Spending
Patterns Emerge," Advertising Age, November
11, 1991, p. 64.
18
Consumption Patterns in Selected Countries
(percent of household expenditures)
U.S. Germany Singapore Mexico Poland Iran Kenya T
hailand India
Food 10 12 19 35 29 37 38 30
52 Clothing 6 7 8 10 9 9 7 16 11 Gross
rent 18 18 11 8 6 23 12 7 10 Medical
care 14 13 7 5 6 6 3 5 3 Education 8 6
12 5 7 5 10 5 4 Transport/communications
14 13 13 12 8 6 8 13 7 Appliances/other
durables 30 31 30 25 35 14 22 24 13
SOURCE For additional data, see Ricardo Sookdeo,
"The New global consumer."Fortune, Autumn-Winter
1993, pp. 68_72.
19
Living Standards in Selected Countries
Percent of Households Country Rooms
per Persons Piped Water Flush Electric Dwelling p
er Room Toilets Lighting
Brazil 4.6 1.1 55 76 69 Chile
2.9 1.6 70 59 88 Costa Rica
4.1 1.4 88 60 73 El Salvador 1.7 3.5 35 28 3
9 Ethiopia 2.0 2.6 83 NA 62 Guatemala
2.4 2.7 30 18 40 Hong Kong 3.1 0.5 98 80 93
Indonesia 3.3 1.2 12 15 30 Japan
4.6 0.7 93 46 98 Peru 2.4 2.3 49 43 48 Saud
i Arabia 3.1 1.9 46 26 61 Singapore
2.1 2.3 48 42 37 Sri Lanka 2.2 2.5 18 10 15
United States 5.3 0.5 99 99 99
SOURCE International Marketing Data and
Statistics, 15th ex. (London Euromonitor
Publications, 1991).