Wednesday, April 18, 2012 Pittsburg State University Pittsburg, Kansas Southeast Kansas International Trade Symposium Presented by: Dr. Raffaele DeVito Professor of Management Chair, International Trade Coordinating Council School of Business Emporia State University EMERGING MARKETS: Business Opportunities for Kansas SME’s

Emerging Markets Definition: – Countries experiencing accelerated economic growth and industrialization BRICS Nations B razil R ussia I ndia C hina S outh Africa

Additional Emerging Nations Chile Eastern Europe Indonesia Malaysia Mexico Turkey United Arab Emerites

Other Markets to be Considered Bangladesh Columbia Egypt Iran Nigeria Pakistan Philippines South Korea Vietam

Global Market Opportunity Assessment VariablesDefinitionWeight (out of 100) Example Measurement Indicators Market sizeProportion of the country’s population concentrated in urban areas 20 Urban Population Market Growth Rate Pace of industrialization and economic development 12 Annual growth rate of commercial energy use Real GDP growth Rate Market intensity Buying power of the country’s residents 14 Per-capita gross national income, based on purchasing power parity Private consumption as a percentage of GDP Market consumption capacity Size and growth rate of the country’s middle class 10 Percentage share of middle- class income and consumption Source: International Business. Cavvsgil, Knight, Riesenberger 2008

Global Market Opportunity Assessment Cont. Commercial infrastructure Ease of access to marketing, distribution, and communicatio n channels 14 Telephone mainlines (per 100 inhabitants) Cellular mobile subscribers (per 100 inhabitants) Paved road density Internet hosts (per million people) Population (per retail outlet) Television sets (per capita) Economic freedom Degree to which the country has liberalized its economy 10 Trade and tax policies Monetary and banking policies Government consumption of economic output Capital flows and foreign investment Property rights Extent of black market activity Market receptivity to imports Extent to which the country is open to imports 12 Per capita imports Trade (as a percentage of GDP) Country riskLevel of political risk 8 Country Risk Rating Total100 Source: International Business. Cavvsgil, Knight, Riesenberger 2008

FREE TRADE AGGREEMENT Percent of U.S. Exports 2010 – FTA Countries: 41% – Non-FTA Countries: 59%

U.S. FTA Partner Countries Australia Bahrain Chile DR-CAFTA: – Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, & Nicaragua Israel Jordan Morocco NAFTA: – Canada & Mexico Oman Peru Singapore Korea Columbia – Pending Panama – Pending