Chapter 9

Question 1

An increase in the average per capita gross domestic product (GDP) and implies a widespread distribution of increased income

Answer 1

economic development

Question 2

Also means rapid economic growth and increases in consumer demand

Answer 2

economic development

Question 3

Most important environmental element concerning the international marketing task

Answer 3

economic development

Question 4

The United Nations groups countries into three categories:

Answer 4

1. ) MDCs (more-developed countries)
2. ) LDCs (Less-developed Countries)
3. ) LLDCs (Least-developed countries)

Question 5

• Industrialized, high per capita income

- Canada, England, France, Germany, Japan, and the United States

Answer 5

MDCs

Question 6

• Industrial developing, just entering world trade, low per capita incomes
• Asia and Latin America

Answer 6

LDCs

Question 7

• Central Africa and Asia

- Industrial underdeveloped, agrarian, rural populations, extremely low per capita income, little world trade

Answer 7

LLDCs

Question 8

• Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan

- Countries that are experiencing rapid economic expansion and industrialization

Answer 8

NICs (Newly Industrialized Countries)

Question 9

Do not exactly fit as LDCs or MDCs
Have moved away from restrictive trade practices
Instituted significant free market reforms

Answer 9

NICs (Newly Industrialized Countries)

Question 10

Half of the world’s population and accounts for 25% of world GDP

Answer 10

BEM (Big Emerging Markets)

Question 11

Important traits of BEMs:

Answer 11

• Have significant populations
• 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
• Will engender further expansions in neighboring markets as they grow

Question 12

As economies expand, there is growth in demand for ___________, much of which be imported

Answer 12

goods and services

Question 13

• Capital goods that serve the activities of many industries
• Paved roads, railroads, seaports, communication networks, etc.

Answer 13

infrastructure

Question 14

The quality of an infrastructure directly affects

Answer 14

• A country’s economic growth potential

- The ability of an enterprise to engage effectively in business

Question 15

Countries begin to lose economic development ground when?

Answer 15

their infrastructure cannot support an expanding population and economy

Question 16

Two key areas that must be considered when marketing in a developing country:

Answer 16

• Level of marketing development

- Demand in developing countries

Question 17

Three distinct markets in each country:

Answer 17

• Traditional rural/agricultural sector
• Modern urban/high-income sector
• Transitional sector/represented by low-income urban slums

Question 18

Trade agreements in the Americas:

Answer 18

• NAFTA
• MERCOSUR
• DR-CAFTA
• CARICOM