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If a country has a trade agreement with another, tariffs do not have to be paid

These are classes listed 1 being lowest, 4 being Highest

High infant mortality rates are also a characterization in these low income countries Foreign aid is often needed

You see a family in Somalia. As you look at these pictures, I like you to think about the daily life in these countries. Pay attention to what people own, how they are dressed, how many people are in the family, and the type of food they might be displaying in the pictures as these details provide us clues about opportunities in these countries. Think about: What we can sell to these people? What do they buy? What do they eat? What do they need?

You see a family of about 15 people in Mali.

Some similar standards, but have industrialized slightly.

Have electricity Motorcycle refrigeration

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Collectivist cultures they prefer to stay together as large families

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Family size shrinks, but more food per individual

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A lot of items Dryer & washer minivan

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.packaged consumer goods most in these countries are employed and dont have time to cook from scratch

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Which is LEAST attractive? -

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GNI gross national income

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Markets are now reaching their saturation points, so expansion to lower markets is a good option, such as mentioned in selling to the poor and unilever case. Hermes working in amazons to create natural rubber bags ($15k) and communicating the idea of social good by helping poor countries.workers CSR

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In PPP, it wants all currencies to be equal to others in value, but it almost never is.

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*Be mindful of currency exchange rates and its impact on the bottom line *Contract is as important as the exchange rates

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Options: *deal with countries with stable currency *develop real estate in the country *trade with commodities *engage in forward markets & hedging *Apply an exchange rate pass through Exchange rate Pass through an increase of prices in response to currency fluctuations (encouraged to avoid)

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4 types of Trade Agreements: Free trade area (FTA) will not charge tariff or quotas (i.e. Mexico, Canada and US are trade partners, where shipping costs are the only thing paid) Customs Union allows to trade w/o tariffs, but also allows companies to apply to external companies together. (i.e. Argentina & Brazil can enter trade agreement to apply tariffs to other countries but not within themselves) make countries equally attractive Common Market in EU allowed workers to travel within other european countries w/o passports or any extra documentation/paperwork

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Economic Union EU ppl and money now can freely and completely move within EU with the same economic and governmental regulations/standards across markets

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Can we use NAFTA to get to MERCOSUR to get America product to Argentina? No, but if it was made in Mexico, we could get it to Argentina *Mexico does no belong to MERCOSUR

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