Week 6: Systematic International Market Selection

Question 1

What are the four factors the world can be segmented by?

Answer 1

Geography
Income
Economic Integration
Growth Prospects

Question 2

Define MENA

Answer 2

Middle East and North African Countries. This includes Algeria, Egypt, Iran, Iraq, UAE, Saudi Arabia etc

Question 3

Define SSA

Answer 3

Sub-Saharan Africa. This includes Botswana, Cameroon, Burkina Faso etc

Question 4

Define OECD

Answer 4

Organisation for Economic Co-operation and Development. This includes Australia, NZ, Japan, Denmark, Italy, Spain, Sweden etc

Question 5

Define NIC

Answer 5

Newly Industrialised Countries. This includes China, India, Malaysia, Thailand, South Africa, Turkey, Brazil and Mexico

Question 6

What are the Asian Dragons?

Answer 6

Hong Kong, Singapore, South Korea and Taiwan. The highly-developed economies in Asia.

Question 7

What does segmenting the world by income show?

Answer 7

It tells you something about price. Higher GDP per capita says something about buyer power and affordability.

Question 8

What is a weakness of segmenting the world by income?

Answer 8

It is per capita, so it is divided by the entire population. It overlooks patterns of entire populations. You are dividing the entire economy, including children/retired, so they may not be earning any income. It also does not tell you about sub-groups, inequalities, or income distribution.

Question 9

What is segmenting the world by economic integration?

Answer 9

Some type of economic integration or economic zone, becoming the basis of segmenting the world to seek opportunities. This creates potential economic shortcuts for going international.

Question 10

Define SADC

Answer 10

South African Development Community. Includes Mozambique, Tanzania, Zimbabwe, Botswana, Zambia, and Malawi.

Question 11

Define COMESA

Answer 11

Common Market for Eastern and Southern Africa. Includes Egypt, Kenya, Madagascar, Malawi, Uganda, Sudan, and Swaziland.

Question 12

Define NAFTA

Answer 12

North American Free Trade Agreement. This is between the US, Canada and Mexico.

Question 13

Define APEC

Answer 13

Asia-Pacific Economic Cooperation. This includes Chile, Singapore, China, US, Hong Kong, and NZ

Question 14

Define Mercosur

Answer 14

South American trade bloc. Includes Brazil, Argentina, Paraguay, and Uruguay.

Question 15

Define ASEAN

Answer 15

Associations of Southeast Asian Nations. Includes Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Laos, Philippines, Singapore, Thailand and Vietnam.

Question 16

What is segmenting by growth prospects?

Answer 16

This combines countries from different regions as it focuses on growth prospects. If you are trying to go international, you want to go into a region that is growing.

Question 17

Define BRICs

Answer 17

Brazil, Russia, India and China

Question 18

Define MINT

Answer 18

Mexico, Indonesia, Nigeria and Turkey

Question 19

Define CIVETs

Answer 19

Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. Diverse and dynamic economies with young, growing populations.

Question 20

Define Next 11

Answer 20

Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Phillippines, South Korea, Turkey and Vietnam.

Question 21

What is the criteria to decide for entering markets?

Answer 21

Market attractiveness, market similarity, rules and regulations, market risk and industry competition