Size and Income: Argentina have a really big size when it comes to population with over 45 million people. That number should also increase for their projections have it that more people are being born then those that are dieing. Argentina's PPP currently is 19000 and for the past five years it actually has been jumping around from 19000 and 21000. For their nominal per capita it is currently 14400 which is good because it has been going up every year for Argentina so that number will only be going up with how its been for the past 10 years. Argentina Economy Internet Usage: Argentina have lots of Internet users with a total of 42 million. Out of those, 30 million have a Face book account which would calculate to 66% of the population dealing with Face book. When it comes to broadband they have one of the biggest penetration rates in Latin America, With the countries political and economic difficulties it has made it more difficult but recently their have been stead improvements. Argentina Internet Usage Trade: When it comes to trade Argentina trades with every one but the countries they trade with the most are Brazil, United States, and China. With a total of 60 billion in exports and 54 billion in imports just from this last year. There balance of trade is really good recently, the last time they were negative was in 2017 and from then they have stayed positive when it comes to the balance of power. Argentina Trade Inflation/Unemployment: The inflation rate in Argentina is 54.4 which has gone down from 57.3 but you still would like for it to be lower then it is now. When it comes to unemployment it is at 10.1 and from 2002 to 2018 it was a average of 9.41 so for 2019 it has gone up slightly but with projections it is said to go back down slightly again. Jose Alvarez Honduras Economy Economy: - Honduran economy is not large at all; the economy basically depends on The United States and Canada. Honduras depends on the exportation of goods such as coffee, bananas, and shrimp. These are the main exportations the country does. Honduras has a PPP of $5,500 and a nominal of $2,480 as of 2017. Connections: - Honduras has an easy connection to internet. As found in the Honduran travel page it is said that tourists have an easy time connecting to the internet. However, it is not the highest internet in South America. It is said that the average cost of 20 hours of Internet access is twenty-two dollars with fifty cents. It is very cheap compared to the United States. The senior IT education administrator in Honduras quoted, “The future depends on technology, and if we don’t lead our students toward it, we would be failing”. Honduras does a great job on trying to promote technology and try to innovate through the years. Trade: - Honduras is known to trade with the United States and Canada they export 9 billion dollars and import 9.9 billion dollars. They export T-shirts, insulated wire, coffee, bananas, melons, gold, soap and paper containers for t.

1. Size and Income: Argentina have a really big size when it
comes to population with over 45 million people. That number
should also increase for their projections have it that more
people are being born then those that are dieing. Argentina's
PPP currently is 19000 and for the past five years it actually has
been jumping around from 19000 and 21000. For their nominal
per capita it is currently 14400 which is good because it has
been going up every year for Argentina so that number will only
be going up with how its been for the past 10 years.
Argentina Economy
Internet Usage: Argentina have lots of Internet users with a
total of 42 million. Out of those, 30 million have a Face book
account which would calculate to 66% of the population dealing
with Face book. When it comes to broadband they have one of
the biggest penetration rates in Latin America, With the
countries political and economic difficulties it has made it more
difficult but recently their have been stead improvements.
Argentina Internet Usage
Trade: When it comes to trade Argentina trades with every one
but the countries they trade with the most are Brazil, United
States, and China. With a total of 60 billion in exports and 54
billion in imports just from this last year. There balance of trade
is really good recently, the last time they were negative was in
2017 and from then they have stayed positive when it comes to
the balance of power.
Argentina Trade
Inflation/Unemployment: The inflation rate in Argentina is 54.4
which has gone down from 57.3 but you still would like for it to
be lower then it is now. When it comes to unemployment it is at
10.1 and from 2002 to 2018 it was a average of 9.41 so for 2019
it has gone up slightly but with projections it is said to go back
down slightly again.

2. Jose Alvarez
Honduras Economy
Economy: -
Honduran economy is not large at all; the economy basically
depends on The United States and Canada. Honduras depends on
the exportation of goods such as coffee, bananas, and shrimp.
These are the main exportations the country does. Honduras has
a PPP of $5,500 and a nominal of $2,480 as of 2017.
Connections: -
Honduras has an easy connection to internet. As found in the
Honduran travel page it is said that tourists have an easy time
connecting to the internet. However, it is not the highest
internet in South America. It is said that the average cost of 20
hours of Internet access is twenty-two dollars with fifty cents. It
is very cheap compared to the United States. The senior IT
education administrator in Honduras quoted, “The future
depends on technology, and if we don’t lead our students toward
it, we would be failing”. Honduras does a great job on trying to
promote technology and try to innovate through the years.
Trade: -
Honduras is known to trade with the United States and Canada
they export 9 billion dollars and import 9.9 billion dollars. They
export T-shirts, insulated wire, coffee, bananas, melons, gold,
soap and paper containers for the most part. The import
Broadcasting equipment, packaged medicaments, non-retail
synthetic staple fibers yarn, delivery trucks, toilet paper, pig
meat, corn, and rubber along other materials that are not found
in Honduras.
Inflation: -
Honduras has experienced a rough time after the turbulent years
of 2008 after they experienced the global financial crisis. Not
only did they suffer economically but also politically. The
minimum wage in Honduras is $7,915 dollar per year. It is in

3. the 23rd place out of 197, meaning that there are 23 other
countries that have a higher minimum wage.
Economy Size
Israel's GDP per capita is $36,400. This means that Israel has
a spending power of $36,400 in a year. This spending power is
55th compared to the rest of the countries in the world. Israel
experienced a 3.3% real GDP growth rate after 2016. Israel's
nominal GDP is approximately $42,000. This number is the
average amount of money an Israeli makes a year.
Connection
Israel has a population of approximately 8.6 million people.
Of those 8.6 million, 5.8 million are subscribed to Facebook.
This means that 68% of the Israeli citizens are active on social
media. Israeli's are quite active internet users. 79% of the Israel
population uses the internet. Israel does have a very competitive
mobile telecommunications market because their mobile
broadband penetration crossed over the 100% mark with 10.5
million total mobile celluar subscriptions. This ranks them 82nd
in the world and concludes that Israeli's all own celluar devices.
4G coverage is very sigificant in Israel, however, there are
several phone companies who provide 3G service. As far as
broadcasting media, Israel's broadcast channels in two
languages: Hebrew and Arabic. The Israel's have access to
foreign channels, 7 commercial channels, 8 radio networks, and
about 15 privately owned radio stations.
Trade

4. Israel's Balance of Trade is -1713 USD million. This number
has gotten decreased almost 50% from the previous year which
is a good sign that Israel is getting better at becoming more
balanced with their trading. Israel brings in almost $2000
million more imports than their exported items. Israel's major
imports are oil, other mineral fuels, and uncut diamonds. The
main exports are cut diamonds, pearls, precious metals, electrial
and mechanical machinery, and electronics. Israel's main
trading partner is the United States. Israel supplies the U.S.
with 28% of their exports and receives 12% of their imports
from Israel. Other countries that Israel participates in trade with
is Hong Kong, China, Belgium, Netherlands, Germany, and the
United Kingdom. Their weapon sales total 707 USD million.
Israel's terms of trade are at an all time low: 106.4 index
points.
Economic Performance
Israel's unemployment rate is 4.2% which is a .6% decrease
from the previous year. This unemployment rate is 55th in the
world, which is the same ranking as their GDP. Despite only
4.2% of the population being unemployed, 22% of Israeli's
population are below the poverty line. Someone is considered to
be below Israel's poverty line if they make less than $7.30 per
day.
Israel's inflation rate is .2%, ranking them 17th in the world,
which is very good for citizens. This means that the general
level of prices of goods and services in the Israel economy have
only risen .2% from 2018. Comparably, the United States'
inflation rate in 2.1% and ranked 110th. This can be because of
the standard of living and minimum wage has increased.

5. The Global
Economic
Environment
1
Interesting The Guardian story about Italy that combines
Culture (population) + Political (govt business subsidies) +
Economic environments
https://www.theguardian.com/world/2019/sep/11/underpopulate
d-italian-region-molise
Global Economic Environment
1 of 2
International Trade Theory
firms expanding internationally must appreciate how their
international activities match with a country’s goals for
international trade
Balance of Payments
a leading indicator of the international economic health of a
country and may directly influence a firm’s expansion decisions
https://tradingeconomics.com/united-states/balance-of-trade
Government Policy and Trade
firms are directly impacted by government policies in areas
such as tariffs and non-tariff barriers
3

6. Global Economic Environment
2 of 2
Institutions in the World Economy
institutions such as the World Trade Organization and the
World Bank greatly influence trade policies, and ultimately can
influence a firm’s global strategy
Regional Economic Integration
firms generally benefit from economic integration through
lower costs of doing business. However it can also lead to
stronger competitors
4
International Trade Theory
Why do nations trade?
Key international trade theories:
Absolute Advantage and Comparative Advantage
Product Life Cycle – Trade patterns and production over time
5
Comparative Advantage
“Different countries have dissimilar prices and costs on goods
because different goods require a different mix of factors in
their production and because countries differ in their supply of
these factors.” (Ohlin)
e.g., Can you grow salmon in Texas?

7. 6
Product Life Cycle
Four Phases of the Product Life Cycle:
Phase 1: the U.S. exports the product
Phase 2: foreign production starts
Phase 3: foreign production becomes competitive in export
markets
Phase 4: import competition begins
The Product Life Cycle may not explain trade and production
patterns as well anymore due to:
Short gap between phases
“Born globals” may skip some phases
7
Product Life Cycle
1 of 3
Developed Nation (strong economy)
Produces more than consumes at the beginning, then a switch
8
Product Life Cycle
2 of 3
Emerging Nation

8. Consumes more than produces at the beginning, then a switch
9
The Consumer PLC
Extending a Product in Other Markets
Balance of Payments 1 of 2
The Balance of Payments (BOP) is a summary of a country's
economic transactions w/the world, for a specified period of
time.
Current Account
Goods (Merchandise)
Services
Unilateral Transfers
http://www.bea.gov/newsreleases/glance.htm
http://tse.export.gov/TSE/
https://economictimes.indiatimes.com/markets/forex/indian-
rupee-hits-an-all-time-low-of-72-69-versus-us-
dollar/videoshow/65769296.cms
11
U.S. Imports
vs. Exports
https://tradingeconomics.com/united-states/balance-of-trade

9. Financial considerations
Reflects a country’s solvency/economic health
Steady loss of foreign exchange reserves may lead to trade
restrictions such as exchange controls
A firm’s pricing policies and profit repatriation may also be
impacted by a country’s BoP
Impact on marketing decisions
Can help the marketing manager identify competitors’ and
consumers’ locations
Balance of Payments
2 of 2
13
Government Policy and Trade
1 of 3
Commercial Policy
Government regulations affecting foreign trade
Primary tools of commercial policy are tariffs, quotas, exchange
controls, and non-tariff barriers
Tariffs
A tax placed on products imported from other countries
Earns revenue and makes foreign goods more expensive
Firms may use tariff engineering to minimize the impact of
tariffs on their products
Trade agreements and the GATT/WTO have significantly
reduced tariffs over the past 50 years
http://online.wsj.com/article/SB125357990638429655.html
14

10. Government Policy and Trade
2 of 3
Quotas
Quantitative restrictions on imported products
Fewer options for firms to ‘work around’ quotas
Exchange Controls
Government monopoly on foreign trade
Foreign trade is administered through a central office
Non-tariff Barriers
Includes customs documentation, food and drug laws, safety
requirements, “buy national” policies, etc.
15
Government Policy and Trade
3 of 3
PROs:
Cost of unemployment is high.
Provides time to start up (or retool an industry).
Long term: increased competition and associated benefits.
Vital to defense.
Diversification of economy.
CONs:
Ineffective allocation of resources.
Reduces incentive to reinvest.
Increases costs to consumers in short run and long run, to all.
Leads to over capacity.
Possible (negative) reciprocity.
Pros and Cons of government intervention in international trade
16

11. International Financial System
Exchange rate instability
Currencies frequently change in value with regard to each other
in unpredictable ways
Foreign exchange rate
The domestic price of a foreign currency
In other words, the amount of US$1 it will cost to buy (or
exchange for) foreign currency
Changes in the exchange rate change the cost of imported goods
(into the home country) and exported goods (into a firm’s
international markets)
http://www.x-rates.com/
17
Institutions in the World Economy
1 of 3
World Trade Organization (WTO)
Promotes the reduction of trade barriers
Originally called the GATT, there have been 8 major rounds of
trade negotiations since 1947
Calls for nondiscrimination – that each WTO member must
grant each other WTO member ‘most favored nation’ status
Provides forums for consultation, mediation, and rulings on
trade disputes between members
http://wto.org/
http://www.wto.org/english/thewto_e/countries_e/thailand_e.ht
m
18

12. Institutions in the World Economy
2 of 3
International Monetary Fund (IMF) provides:
A forum for global monetary and fiscal discussions
Financial assistance (loans) to countries with BoP issues
Technical assistance and economic consultants to countries to
help them design and implement sound economic policies
http://www.imf.org/external/index.htm
http://www.imf.org/external/country/pry/index.htm
19
Institutions in the World Economy
3 of 3
The World Bank Group
Originally called the International Bank for Reconstruction and
Development (IBRD), its primary mission was to help rebuild
infrastructure after World War II
The World Bank still provides loans for infrastructure
development, mostly in developing economies
http://www.worldbank.org/
http://www.worldbank.org/en/country
20
Regional Economic Integration
1 of 2
Regional economic integration is when nations agree to work
together to pursue common economic gains
There has been tremendous growth in regional economic
integration in the last 50 years

13. The five major levels of integration are:
21
Regional Economic Integration
2 of 2
USMCA
(BREXIT)
22
ECONOMIC Blogpost
Write an economic profile of your country, include information
on
How large is the economy? PPP and nominal per capita
incomes?
How “connected” are they (phone/internet usage and
infrastructure – include cellphones, broadband, social media)?
Who do they trade with? How much? Balance of trade?
How is this economy doing (inflation, unemployment, interest
rates, etc.)?
Any recent, important stories about the country at WTO, IMF,
Worldbank sites?
https://www.cia.gov/library/publications/the-world-factbook/
http://www.internetworldstats.com/
http://databank.worldbank.org
http://www.tradingeconomics.com/index-list-by-country
AND OTHERS MENTIONED ON PREVIOUS SLIDES

14. Nope, by noon
tomorrow
http://www.worldbank.org/en/country
http://www.imf.org/external/country/pry/index.htm
http://wto.org/