Global Economic Environment

World Population Top In Millions China: 1,208 India: 939 Rest of World: 2,397 Pakistan: 131 Indonesia: 194 Brazil: 162 Taiwan: 124 Bangladesh: 122 Japan: 126 United States: 263 Russian Federation: 150

World Population Top In Millions China: 1,711 India: 1,578 Rest of World: 3,907 Pakistan: 280 Indonesia: 303 Brazil: 260 Bangladesh: 210 Nigeria: 227 Taiwan: 162 United States: 329 Russian Federation: 165

World Population by Major Areas and Life Expectancy World2,516.04,8555,4797, Africa , Asia1,378.02,8423,2334, North America Latin America Europe (including USSR*) Oceania Life (millions)(millions)(millions)(millions) Expectancy 1985 (years) *Estimate includes all republics of former USSR. SOURCE: World Population Prospects (New York: United Nations, 1990), pp and 1992; Demographic Yearbook (New York: United Nations, 1994), p.103.

GNP per Capita: 1995 & 2020 Top Ten Countries Luxembourg$37,800 Switzerland36,900 Japan33,700 Denmark 27,100 Norway 26,600 U.S. 25,300 Sweden 24,900 Germany 24,500 Austria24,100 Kuwait23, Singapore$75,200 Luxembourg73,600 Japan72,400 Hong Kong71,900 Switzerland44,000 Austria40,500 Belgium40,200 Germany39,200 Korea38,400 Cyprus38,

GLOBAL INCOME AND POPULATION: 1995 World (Total) $25,097 $4, , Triad (Total) 19,119 24, North America* 7,253 24, Japan 4,247 33, EU 7,619 20, Other High Income , <1 Upper Middle Income 2,239 4, Lower Middle Income 2,403 1, , Low Income , Unavailable Data N/A N/A N/A GNP (billion) GNP Per Capita % of World GNP Population (million) % of World Population Market *Not including Mexico

Country Income Segmentation High Income (Advanced Countries) - Triad - Others Upper Middle Income (NIC's) Lower Middle Income (DC's) Low Income (LDC's) Basket Cases (BC's) + $14,000 + $2,500 + $500 < $500

GLOBAL INCOME AND POPULATION: 1995 GNP with PPP GNP Per Capita GNP Per Capita with PPP Market *Not including Mexico World (Total) $25,097 $30, $4,678 $5,863 Triad (Total) 19,119 16, ,203 21,511 North America* 7,253 7, ,903 24,877 Japan 4,247 2, ,748 22,636 EU 7,619 6, ,435 18,502 Other High Income ,415 35,904 Upper Middle Income 2,239 3, ,397 7,604 Lower Middle Income 2,403 7, ,001 3,126 Low Income 491 2, ,370 Purchasing Power Parity Compared (billion) % of world GNP % of world GNP with PPP

Standard of Living China ,000,000 Hong Kong ,000 Japan ,000 U.S ,000 Russia ,000,000 Life Expectancy Schooling (av. years) Number of people per: DoctorTVPhoneMcDonald’s Sources: WEFA, AsiaWeek, McDonald’s, The New York Times

Income Inequality Source: Brookings Institutions; IFS; Lynn Karoly, RAND Corporation, World Bank Ratio of income of richest 20% of households to poorest 20%, latest year available

India: A Closer Look Per capita income$330 Per capita GDP$310 Population950m Literacy rate<50% Telephones6m Television Sets35m Access to clean sanitation*14% Population with income >$2,5002.3% Average household size5.2 Growth rate3.5% 1994 *One of the lowest rates of access in the world

WESTERN EUROPE Intra-Trade:1,230 Exports: 481 Imports: 473 World Trade Flows ASIA Intra-Trade: 394 Exports: 491 Imports: 360 REST OF WORLD Intra-Trade: 57 Exports: 255 Imports: 303 AMERICAS Intra-Trade: 221 Exports: 364 Imports: Sources: International Trade Statistics General Agreement on Tariffs and Trade Geneva (in billions of dollars)

Leading World Trading Countries, 1992 ($ millions) U.S.A. $447.4$552.6$1,000.0 Germany Japan United Kingdom Italy Netherlands Canada Belgium/Luxembourg Hong Kong China Spain South Korea Taiwan Switzerland Singapore * Order determined by total dollar value of exports and imports. For additional trade data see: "Indicators of Market Size for 115 Countries, Part I," Crossborder Monitor, August 31, 1994, pp Country*Exports ImportsTotal

The Expanding Triad European Economic Area N. American Free Trade Area Japan and the Tigers Population (million) GNP (billion) GNP Per Capita 381$ 7,596$ 19, $ 13, $ 7,888$ 20,746 U.S., Canada, Mexico Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand 1995 figures % of World: 7%30% % of World: 7%21% % of World: 7%31% EU: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, U.K. EFTA: Iceland, Switzerland $ 5,314

International Product Trade Cycle Model High Income Countries Medium Income Countries Low Income Countries Time Stages of Production Development New ProductStandardized ProductMaturing Product QuantityQuantity production consumption 2