This document discusses economic development and trade relationships between countries. It describes the different stages of economic development that countries can be classified into, from more developed to least developed. As countries develop economically, new patterns of consumer behavior emerge. The economic level of a country is the most important environmental factor for marketers. Some key drivers of economic growth are political stability, entrepreneurship, and central planning. Developing countries aim to industrialize and achieve social progress, while being wary of foreign businesses. NAFTA created a large free trade area in North America in 1994. Overall, marketers must devise strategies that account for varying levels of countries' economic development and changing market trends globally.

1. CHAPTER 9
ECONOMIC DEVELOPMENT
AND THE AMERICAS

2. The importance of time zones
for trade relationships and
marketing operation
 The Americas,Europe & Asia are multinational
market regions with major trading blocs.
 The common time zones give the Europeans
advantages in both Africa and the Middle East.
 Within each trading bloc are fully industrialized
countries, rapidly industrializing countries, and
other countries.

3. Stages of Economic Development
The United Nations classifies a country’s stage of economic
development on the basis of its level of industrialization into the
following three categories
• More-developed countries (MDCs): industrialized countries with
high per capita incomes, such as Canada, England, France,
Germany, Japan, and the United States
• Less-developed countries (LDCs): industrially developing
countries just entering world trade with relatively low per capita
incomes, such as many countries in Asia and LatinAmerica
• Least-developed countries (LLDCs): industrially underdeveloped,
agrarian, subsistence societies with rural populations with
extremely low per capita income levels, and little world trade
involvement, such as some countries in Central Africa and parts
of Asia

4. Economic Level and MarketingTask
 As countries prosper and their people are exposed
to new ideas through global communications, new
patterns of consumer behavior emerge.
 The economic level of a country is the single most
important environmental element.
 Economic development means rapid economic
growth and increases in consumer demand.

5. Economic Growth Factors
 Political stability in policies affecting development
 Entrepreneurship
In these nations, free enterprise in the hands of
the self-employed was the seed of the new
economic growth.
 Planning
A central plan with observable and measurable
development goals linked to specific policies was in
place.

6. Objectives of Developing
Countries
 Industrialization is the fundamental objective of
most developing countries.
 Economic growth is measured not solely in
economic goals but also in social achievements.
 Because foreign businesses are outsiders, they
often are feared as having goals in conflict with
those of the host country.

7. NAFTA (1 of 2)
 NAFTA was ratified and became effective in
1994.
 A single market of 360 million people with a
$6 trillion GNP emerged.
 NAFTA required the three countries to
remove all tariffs and barriers to trade over 15
years.

8. Summary
 The global marketer of today and tomorrow
must be able to react to market changes rapidly
and to anticipate new trends within constantly
evolving market segments.
 The impact of the political, social, and economic
trends will continue to be felt throughout the
world, resulting in significant changes in
marketing practices.
 Marketers must focus on devising marketing
plans designed to respond fully to each level of
economic development.

9. THANK YOUU!!!!!!!

10. MEMBERS:
CARITATIVO, BONAFAYE
CELORICO, CARLA
DORON, JIRAH MAE
PASCUAL, SHEENA