Concept
Why is the economic environment important when entering global markets?
IntroductionToBusiness OP 8D04gAa / 3.7. Threats and Opportunities in the Global Marketplace*
"The level of economic development varies considerably, ranging from countries where everyday survival is a struggle, such as Sudan and Eritrea, to countries that are highly developed, such as Switzerland and Japan. In general, complex, sophisticated industries are found in developed countries, and more basic industries are found in less developed nations. Average family incomes are higher in the more developed countries than in the least-developed markets. Larger incomes mean greater purchasing power and demand, not only for consumer goods and services but also for the machinery and workers required to produce consumer goods. Business opportunities are usually better in countries that have an economic infrastructure in place. Infrastructure is the basic institutions and public facilities upon which an economy’s development depends. When we think about how our own economy works, we tend to take our infrastructure for granted. It includes the money and banking system that provide the major investment loans to our nation’s businesses; the educational system that turns out the incredible varieties of skills and basic research that actually run our nation’s production lines; the extensive transportation and communications systems—interstate highways, railroads, airports, canals, telephones, internet sites, postal systems, and television stations—that link almost every piece of our geography into one market; the energy system that powers our factories; and, of course, the market system itself, which brings our nation’s goods and services into our homes and businesses. Where the Money Is The Top 20 Gross National Income Per Capita* US$ Luxembourg 103,199; Switzerland 79,243; Norway 70,392; Ireland 62,562; Qatar 60,787; Iceland 59,629; United States 57,436; Denmark 53,744; Singapore 52,961; Australia 51,850; Sweden 51,165; San Marino 46,447; Netherlands 45,283; Austria 44,498; Finland 43,169; Canada 42,210; Germany 41,902; Belgium 41,283; United Kingdom 40,096; Japan 38,912. The Bottom Five Madagascar 391; Central African Republic 364; Burundi 325; Malawi 295."
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