World Marketplaces

World Marketplaces North America: U.S., Canada, Mexico, the countries of Central America US: 24% of world’s GDP, Exports are 12% of U.S. GDP, 133 of 500 of world’s largest MNCs Canada: Only 34 mil. People, but 80% of population in 100-mile band along southern border Mexico: Most populous Spanish-speaking nation, NAFTA & EU free trade agreements have brought many new factories Others: 83 mil people, but only $4B GDP (one quarter of Canada)

South America 13 countries with common political history. Considerable economic & social problems Chile is one of most free-market economies in the world, Venezuela is the opposite. Brazil has had fast growth and a rapidly expanding middle class

World Marketplaces Western Europe EU: 27 countries (17 use the Euro), 500 mil people, $16.4 trillion GDP, Germany world’s 4th largest economy, UK/France/Spain/Italy are other major players Newest members come from former Soviet Union Iceland/Norway/ Switzerland are not EU.

World Marketplaces Eastern Europe Russia: 9 th largest population, GDP increasing by 6%/year since 2000, 3 rd largest currency reserves Other CIS states are much smaller markets Central Asia Five republics with much in common. Muslim faith is dominant, fossil fuels extensive

World Marketplaces Asian Kingpins China: 1.3B people, communist but adopting market policies, steady 10% growth, exploding FDI India: 1B people, diverse sub-economies, cumbersome bureaucracy, overburdened institutions Japan: 126 mil people, $5.1 tril GDP. Keiretsu are large families of interrelated companies, cross- ownership, slow growth

Southern Asia Four Tigers: South Korea, Taiwan, Singapore, Hong Kong. Rapid industrialization, massive exporting (half of GDP), high incomes. Southeast Asia: Mix of growth/risk, poverty/high- earners, stability/intermittent turmoil Aus/N.Z: Concentrated populations, agriculture & tourism, common culture

Africa 1B people in 55 countries. $2 tril GDP all together, mostly from South Africa, Nigeria, Egypt, & Algeria. Commodities boost some countries: Algeria, Angola, Libya, Nigeria, Zambia Botswana Many poor agricultural nations South Africa may become a dominant force in coming years owing to its minerals exports

Middle East Saudi Arabia has largest economy, $4B GDP Israel highest income, $25K/year Oil exports account for most of GDP in the petro- states. Trying to diversify for “life after oil” High cultural distance from U.S. deters initial investments Sovereign wealth funds invest abroad