8/28/2012
Mexico
Portugal
Argentina
Russia
Brazil
Greece failed to pay debts back.
If gov. fails to pay int. debt, then the rest of the world:
– all banks leave them
– major banks have to shut down
– The lenders die (consequence)
Some stores charging to compare prices
Strengths
Germany – tech, pharmaceutical
Mexico – 70% trade w the US, New president making peace w drug cartel
– import more than export
– tourism declining
– Who suppies? Druglords. Who buys? Americans
– 2/3 – ¾ dependent on US (we are all technically good people in terms of “not” doing
drugs)
US – one of most wealthy and powerful; influence over others b/c more money, better
innovation, better economy, trade power, brain power…
China – Rising in economy…competing? with us, b/c rapid rise in economy, but they do
not do most of the design as we do in the US
Brazil – Rising and improving – competing with natural resources, low-end technology
software (pharmaceuticals, airplanes…shorter flights)
India – Rising
South Africa – Rising b/c of bricks, mining, services
Argentina – Rising
UAE – Rising
Singapore – Rising
Russia – Low-end computing technology
India and China complement U.S. because of higher labor and manufacturing…efficiency
must win. We are not efficient in making a lot of products so outsourced.
Low-end services going to India, customer service and fixes if you have a problem…they
speak English in India, (not so much in China) higher educations
Biggest private exporter is WAL MART – 80-90% Chinese exports
Almost all of US technology comes from the US Defense Department.
– 90% garbage but 10% is biggest technology for human advancement
DARPA created the internet
– Defense Advanced Research Projects
– In Langely devision
– Research division of US Defense Department
o Develops some of the most advanced instruments used in 2013
o Radar systems, microwaves, scanners
US services
– infrastructure like roads (freeways and planning), bridges, trains, airports, electronic
infrastructure
– Financial, legal, medical, education, sports, entertainment services (spill-over effect; we
are great b/c we build off of R&D -> consumers -> financial)
– Largest service exporter in the world
o 2nd is France
Very few product markets and areas in the foreign markets (India, China, France) actually
compete with the US
Most soccer players don’t have a high school degree
Our competition is in chemical, automobile, medical industries, which are mid-level
industries
Argentina – the only country that became advanced from emerging economy in entire 18th
century
1 country in the entire 20th century changed from emerging to advanced = Japan
– economist standpoint
China is the most dominant player in Africa
France main exports are: aircrafts (10.1 percent of total exports), food (9.7 percent),
chemicals (9.5 percent), industrial machinery (8.3 percent), iron and steel (7.9 percent),
electronics (6.7 percent), motor vehicles (6.3 percent) and pharmaceuticals (6.1
percent). Trade outflows to Europe account for 70 percent of total exports. Main export
partners are: Germany (16.6 percent of total exports), Italy (8.2 percent), Spain (7.3
percent), Belgium (7.2 percent), the United Kingdom (6.6 percent), the United States
(5.6 percent), Netherlands and China. This page contains – France Exports – actual
values, historical data, forecast, chart, statistics, economic calendar and news.
Exports measure the amount of goods or services that domestic producers provide to
foreign consumers by. It is a good that is sent to another country for sale. In the past,
export of commercial quantities of goods normally required involvement of the customs
authorities in both the country of export and the country of import. More recently, with the
advent of small trades over the internet such as through Amazon and e-Bay, exports have
largely bypassed the involvement of Customs in many countries due to the low individual
values of these trades. Nonetheless, these small exports are still subject to legal restrictions
applied by the country of export.
Chinas bond market has quintupled in size to 25.5 trillion yuan
Functional utility – what do you really need? Apple store tries to sell you another product
to satisfy your need
Emotional utility – Satifsfying what people want…ex: Louis Vitton. for others to see and
people know you belong to another class. Different classifications…pure marketing
WANTS vs. NEEDS
MUST in a cellphone:
Calls
Texts
– Peoples needs are the same so why customize
– Marketers would be stupid if they wanted to sell everything customizable rather than
standardization. People all need the same thing.
– What comes with product and standardization? Manufacturing…needs end up being
wants…centralize and integrate manufacturing.
– To diversify risk, have multiple manufacturing plants in different parts of the world…US,
Egypt for south Africa, Germany for Europe.
– Exporting is the only way to go international, and have international market entry.
– Outsourcing cheaper for standardized products…same exact problems, chips, speakers,
touchstones. (efficiency)
– Get your own people when you want to customize
– Beneton – most eccentric brand – all products almost identical
– The more production, the less the lower the cost of prod.
– Niche players come in and differentiate and add on to the standardized product.
– Standardization = lower cost and better product.
– Find what they want, adjust what they want
– Customization should be done in the part of the world where those people want (Germns
ex) those products. (localization – local managers, local marketing, local pricing and
design, research, development, distribution.)
– Multinational (give customers what they want but not efficient, higher cost [the
