Chapter 11: Global Market Opportunities in the Asia Pacific region

Purchase Price Parity (ppp)

The PPP calculation takes into account deflation and best reflects the average well-being of the Japanese people

The Greater China

Refers to both the People’s Republic of China (PRC) and the Republic of China (ROC) or Taiwan

Four Asian Tigers

Most rapidly growing economies in this region during the 1980s and 1990s were the group; Hong Kong, South Korea, Singapore, and Taiwan; often described as the “East Asian miracle,” they were the first countries in Asia, after Japan, to move from a status of developing countries to newly industrialized countries

Bottom-of-the-pyramid markets (BOPMs)

Consisting of the 4 billion people across the globe with annual incomes of less than $1,200; these markets are not necessarily defined by national borders but rather by the pockets of poverty across countries

Peoples Republic of China

Most important single world market other than USA and Japan. It has great economic strenghth not form an export machine but from a vast market of domestic demand

Issues with China

No one growth strategy (different governing, taxing, investment); Human rights (jailoing dissidents, lack of religious freedomt); Legal System (local protectionism hurts MNCS); Environmental Decline; Demographic Disaster

Taiwan

Discarded China's juridiction in 1949 gained independence and formed a separate government

Japan

Fast growth in the 70's and 80's with subsequent slow down in the 90's

Reasons for Japans Slow Down

Faulty economic Policies; Inept Political Apparatus (liberal democratic political party); Uncontrollable Events (earthquake); Cultural Inhibitions

Transformation of India

Privatising SOEs; Developing a comprehensive WTO strategy; Levergering IT business boom; Agreeing to LIFT USA import Restrictions; India--- the next china

India

Poor Economic growth because of domestic production and free market aversion; High Tarrifs poor intellectual property protection

Vietnam

Possibly a 5th Asian Tiger; USA bilateral trade agreement led to its NTR status; Lowers Vietnamere export tarrifts to usa by 37%; Highly educated and motivated population with the government committed to growth

ASEAN

Association of Southeast Asian Nations; primary multinational trade group in Asia

ASEAN+3

China, Japan, and South Korea deal with trade and monetary issues facing Asia

APEC

Provides a formal structure for the major governments of the region, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration

Admission to the World Trade Organization and the granting of normal relational trades by the US have had a profound effect on China.

True

In India they would rather do business with foreign countries than finding somebody internal.

False

The expression “Bottom of the Pyramid” refers to: 

The lowest income earners of the global society

Which of the following countries are a part of ASEAN?

Brunei, Indonesia, Myanmar

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan and _____.

South Korea

True or False. "The Greater China" refers ONLY to the People's republic of China.

False

Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration?

apec

What are some of the issues Japan faces as an economic entity in the market?

aging, budgets, productivity

According to the text, bottom of the pyramid (BOP), also called base of the pyramid, is a term in economics that refers to the poorest ________ of the economic human pyramid, a group of more than four billion people living in abject poverty.

two thirds

Based on the lecture, the bottom of the pyramid markets consist of people across the globe with annual income of less than _______.

1200

True or False. Tianjin is China's largest industrial city.

False

Based on the lecture, what are some of the things that are needed to conduct BOP marketing?

Advanced technology, creative financing, effective distribution