Discussion Questions
1. Define:
BEM
2. “It is possible for an economy to experience growth as measured by total GNP without a
commensurate rise of the standard of living.” Discuss fully.
3. Why do technical assistance programs of more affluent nations typically ignore the distribution
problem or relegate it to a minor role in development planning? Explain.
4. Discuss each of the stages of evolution of the marketing process. Illustrate each stage with a
particular country.
The marketing institutions which develop as a country passes from one stage to another are as
follows:
EXHIBIT 9–4
EVOLUTION OF THE MARKETING PROCESS
Stage Substage Marketing Functions
Agricultural and raw materials Self-sufficient None
(MK. (f) = Prod.)1Surplus
Commodity producer
Small-Scale Merchants, Traders,
Fairs
Manufacturing
(Mk. = Prod.)
Small-Scale Merchants, Wholesalers, Export-
Import
5. As a country progresses from one economic stage to another, what in general are the marketing
effects?
6. Locate a country in the agricultural and raw material stage of economic development and discuss
what changes will occur in marketing when it passes to a manufacturing stage.
7. What are the consequences of each stage of marketing development on the potential for industrial
goods within a country? For consumer goods?
1 Mk (f) = Prod: Marketing is a function of production.
8. Discuss the significance of economic development to international marketing. Why is the
knowledge of economic development of importance in assessing the world marketing environment?
Discuss.
Economic development is significant in international marketing because (1) the stage of economic
development has tremendous influence upon the demand for both consumer and industrial goods, and
(2) the level of economic development also has an effect upon the acceptance of a foreign marketer
An international marketer must be capable of adjusting to a foreign economic environment. He must be
able to answer such questions as: (1) What are the objectives of the developing nations? (2) What role is
marketing assigning, if any, in economic growth plans? and (3) What contribution must marketing make
9. The Internet accelerates the process of economic growth. Discuss.
In addition to growth factors discussed above, a country’s investment in information technology (IT) is also an
For example:
The Internet accelerates the process of economic growth by speeding up the diffusion of new technologies to
emerging economies. Unlike the decades it took before many developing countries benefited from
The Internet facilitates education, a fundamental underpinning for economic development. The African Virtual
Mobile phones and other wireless technologies greatly reduce the need to lay down a costly telecom
10. Discuss the impact of the IT revolution on the poorest countries
Substantial investments in the infrastructure to create easy access to the Internet and other aspects of IT are
11. Select one country in each of the three stages of economic development. For each country, outline
the basic existing marketing institutions and show how their stages of development differ. Explain
why.
Library project.
33 Thomas Sancton, “A Great Leap Developing Countries Are finding Way to Leverage Advances in Information Technology and Help Narrow
the North-South Divide,” Time International, January 31, 2000, p. 42.
12. Why should a foreign marketer study economic development? Discuss.
13. The infrastructure is important to the economic development of an economy. Comment.
14. What are the objectives of economically developing countries? How do these objectives relate to
marketing? Comment.
15. Using the list of NIC growth factors, evaluate India and China as to their prospects for rapid
growth. Which factors will be problems for India? For China?
Entrepreneurship. In all of these nations, free enterprise in the hands of the self-employed
was the seed of the new economic growth.