Economic & Economic & Socioeconomic ForcesSocioeconomic Forces

Chapter 8Chapter 8

Economic ForcesEconomic Forces

Why is it so important to study Why is it so important to study economic forces?economic forces?

International Economic AnalysesInternational Economic Analyses Whose responsibility?Whose responsibility?

Economic DimensionsEconomic Dimensions

GDPGDP What does it do?What does it do?

GNI per capitaGNI per capita Which is usually chosen:Which is usually chosen:

Low GNI per capita and high growth rateLow GNI per capita and high growth rate High GNI per capita and low growth rateHigh GNI per capita and low growth rate

Economic DimensionsEconomic Dimensions

Income DistributionIncome Distribution Three characteristicsThree characteristics

Private ConsumptionPrivate Consumption Discretionary incomeDiscretionary income

Purchase Power ParityPurchase Power Parity Developing country trendsDeveloping country trends Developed country trendsDeveloped country trends

Concerned with ownership of goods and Concerned with ownership of goods and consumption of key materialsconsumption of key materials

Economic DimensionsEconomic Dimensions

Unit-Labor CostsUnit-Labor Costs Slow-rising unit labor costsSlow-rising unit labor costs Why do changes in cost occur?Why do changes in cost occur? U.S. trendsU.S. trends

Other Economic DimensionsOther Economic Dimensions Large national debtsLarge national debts

What can governments do?What can governments do?

Socioeconomic DimensionSocioeconomic Dimension

Total PopulationTotal Population Market size?Market size? Other considerationsOther considerations

Age DistributionAge Distribution High birth ratesHigh birth rates Lower birth ratesLower birth rates Concerns for developed nationsConcerns for developed nations

Example: JapanExample: Japan

Socioeconomic DimensionsSocioeconomic Dimensions

Population Density and DistributionPopulation Density and Distribution Population densityPopulation density Population distributionPopulation distribution

What does it means for managers?What does it means for managers? Rural-to-urban shiftRural-to-urban shift

Other DimensionsOther Dimensions Women workersWomen workers Divorce ratesDivorce rates

Industry DimensionsIndustry Dimensions