3. TTEECCHHNNOOLLOOGGYY
Moved from AGRO to INDUSTRIAL exports – eg Brazil previously orange
juice, poultry, soybeans, but now also exporting alchohol-based fuel, carbon
steel, planes, automobiles, weapons (6th largerst)
Concentrated on agro with new technology – en Chile previously only
bananas & apples in 1960s, now world’s largest fruit exporter (2000) of grapes,
wine, also salmon, fishmeal)
4. ccoonntt -- TTEECCHHNNOOLLOOGGYY
Improve infrastructure & technology help develop OTHER economic
sectors resulting sophisticated production technology, management method,
processed & semi processed
Investment in IT, cellular phones & internet - jump start economies
by cutting transaction cost, enable selling to global market VS railways,
telephones, electricity.
*** eg Venezuela mobile phones (pay-as-you-go) for non-wired slums
5. ccoonntt -- TTEECCHHNNOOLLOOGGYY
Social overhead capital (infrastructures) – paved roads, railways,
seaports, communication networks, energy supplies – support
production and marketing
6. SSOOCCIIAALL
More effective Government & Corporations - Better health service
& improvement in standards of living
Social institutions - Family, Religion, School, Media, Government to
spread propaganda, how to behave, govern society, good ethics and
practices
7. ccoonntt -- SSOOCCIIAALL
Elimination of social inequities - Position of men & women in society,
family, social classes, age groups, and society perception, values &
group behaviour, egalitarian (equalities between family members)
Birth control - put off child bearing & marriages in pursue of career
development and social interactions
8. PATTERNS OOFF CCOONNSSUUMMPPTTIIOONN
From Socialist to Market-driven economy – liberalization of trade
and investment policies - Production-marketing-distribution-creating
needs & wants
Trends toward privatisation - From state-owned to private sector &
foreign investment
9. cont - PATTERNS OOFF CCOONNSSUUMMPPTTIIOONN
Simultaneous consumption patterns :
1) Traditional small retail outlets (rural/agro sector-countryside)
2) Advanced modern markets (like supermarkets) in urban/high
income - capital cities
3) Large transitional sector (low income urban slums) – moving
from countryside to cities
10. cont - PATTERNS OOFF CCOONNSSUUMMPPTTIIOONN
Development of supporting industries - Financial & commercial
services, communication network advertising agencies, warehousing,
credit & banking, research agencies
11. EEDDUUCCAATTIIOONN
Direct link between economic growth & literacy rate –
development of supporting services eg. research, consultations,
planning
Data centres provide public phones, fax, internet – video linkups,
online books for students, training, journal, databases and potential
business for entrepreneurs
12. ccoonntt -- EEDDUUCCAATTIIOONN
Developing local talents – to partner with foreign investors
Exposed to new ideas & behaviour patterns – global
communication networks
13. LLIINNGGUUIISSTTIICC DDIISSTTAANNCCEE
Hofstede’s index, language and linguistic distance
1. Individualism/collective index (IDV) – individualism orientation
2. Power distance index (PDI) – authority orientation
3. Uncertainty avoidance index (UAI) - risk orientation
4. Masculanity/feminity index (MAS) – assertiveness & achievement
14. cont - LLIINNGGUUIISSTTIICC DDIISSTTAANNCCEE
Concentration of local languages and
cultures - Increasing marketing efforts
focused on big emerging market (BEM) –
half of world population and GDP
increasing to 50% soon
Effects of language differences on
trade eg. McCann Group in Bogota,
Colombia developed division called
“Barrio” – send employees across Latin
America over 2 years – 700 hours video
recording, questionnaires. Outcome –
meaning of FOOD is energy & strength to
work and not get sick. Use trumpet,
bongo-drum jingle using Spanish word –
‘Rinde’ meaning lasting and
productiveness