Week 6: Systematic International Market Selection Flashcards
What are the four factors the world can be segmented by?
Geography
Income
Economic Integration
Growth Prospects
Define MENA
Middle East and North African Countries. This includes Algeria, Egypt, Iran, Iraq, UAE, Saudi Arabia etc
Define SSA
Sub-Saharan Africa. This includes Botswana, Cameroon, Burkina Faso etc
Define OECD
Organisation for Economic Co-operation and Development. This includes Australia, NZ, Japan, Denmark, Italy, Spain, Sweden etc
Define NIC
Newly Industrialised Countries. This includes China, India, Malaysia, Thailand, South Africa, Turkey, Brazil and Mexico
What are the Asian Dragons?
Hong Kong, Singapore, South Korea and Taiwan. The highly-developed economies in Asia.
What does segmenting the world by income show?
It tells you something about price. Higher GDP per capita says something about buyer power and affordability.
What is a weakness of segmenting the world by income?
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.
What is segmenting the world by economic integration?
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.
Define SADC
South African Development Community. Includes Mozambique, Tanzania, Zimbabwe, Botswana, Zambia, and Malawi.
Define COMESA
Common Market for Eastern and Southern Africa. Includes Egypt, Kenya, Madagascar, Malawi, Uganda, Sudan, and Swaziland.
Define NAFTA
North American Free Trade Agreement. This is between the US, Canada and Mexico.
Define APEC
Asia-Pacific Economic Cooperation. This includes Chile, Singapore, China, US, Hong Kong, and NZ
Define Mercosur
South American trade bloc. Includes Brazil, Argentina, Paraguay, and Uruguay.
Define ASEAN
Associations of Southeast Asian Nations. Includes Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Laos, Philippines, Singapore, Thailand and Vietnam.
What is segmenting by growth prospects?
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.
Define BRICs
Brazil, Russia, India and China
Define MINT
Mexico, Indonesia, Nigeria and Turkey
Define CIVETs
Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. Diverse and dynamic economies with young, growing populations.
Define Next 11
Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Phillippines, South Korea, Turkey and Vietnam.
What is the criteria to decide for entering markets?
Market attractiveness, market similarity, rules and regulations, market risk and industry competition
