International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Solution man

With additional countries poised to join the EU, the resulting pan-European market is one that no major MNC can afford to ignore.
The Transatlantic Trade and Investment Partnership (T-TIP), a proposed trade agreement between the EU and the U.S., could further bolster trade and multilateral economic growth in Europe and North America.
Teaching Tip: The EU maintains an excellent website at http://www.europa.eu/.
Although Japan has experienced economic problems since the early 1990s, it continues to be one of the primary economic forces in the Pacific Rim.
Japanese MNCs want to take advantage of the huge, underdeveloped Asian markets.
Teaching Tip: As a way of demonstrating to students how “global” the world has become, consider showing them Yahoo Japan, which is the Yahoo search engine written in Japanese (http://www.yahoo.co.jp/), or Facebook’s Japanese site http://ja-jp.facebook.com/
At the same time, China continues to experience steady growth and on pace to surpass the U.S. as the largest economy in the world, in terms of nominal GDP, as early as 2030.
As a region, Asia continues to expand more rapidly than the rest of the world.
The Association of Southeast Asian Nations (ASEAN), made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, and, in recent years, Cambodia, Myanmar, and Vietnam, is advancing trade and economic integration and now poses challenges to China as a region of relatively low-cost production and export.
Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Asian-facing countries negotiated an ambitious Asia-Pacific trade agreement.
CPTPP currently includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Central and Eastern Europe, Russia, and the other republics of the former Soviet Union are still trying to make stable transitions to market economies.
All remain a target for MNCs looking for expansion opportunities.
Changing Global Demographics
In 2016, for the first time since the end of the Second World War, the global working-age population declined.
By 2050, the Wall Street Journal projects that the working age population will contract by nearly five percent worldwide.
Due to improvements in the technology and health care sectors, people are now living longer lives in both developed and developing countries.
Global life expectancy increased and fertility rate decreased.
Though these demographic changes are projected to occur globally, the most dramatic impact will be seen in the developed nations with shrinking working class populations.
The amount of spending on health care-related services will continue to increase rapidly, while the demand for goods such as cars and computers will decline.
The Shifting Balance of Economic Power in the Global Economy
Economic integration and the rapid growth of emerging markets are creating a shifting international economic landscape.
Specifically, the developing and emerging countries of the world are now predicted to occupy increasingly dominant roles in the global economy.
Teaching Tip: The New York Times supplies a website with current world business articles: http://www.nytimes.com/pages/business/worldbusiness/index.html.
The emerging markets of Brazil, Russia, India, and China (the “BRIC” economies) were predicted to grow from 20 percent of the economic share of world growth in 2003 to more than 40 percent by 2025.
Other than India, the economies had some setbacks.
Despite these setbacks, the economic expansion of the BRIC countries has tremendously impacted global trade and commerce over the last 20 years.
By 2018, the BRIC economies accounted to 23 percent of global nominal GDP, compared to just 8 percent in 2001 – far outpacing growth in developed economies.
In 2006, PricewaterhouseCoopers (PwC) coined the term E7 to describe seven major emerging economies (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) expected to expand significantly in the coming decades.
By 2050, the GDP of the E7 is predicted to be 50 percent higher than that of the G7.
The N-11 (N stands for “next”) are a group of economies that may constitute the next wave of emerging markets growth.
Includes Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam.
The MIST countries (Mexico, Indonesia, South Korea, and Turkey), a subset of the N-11 are particularly attractive due to their young, growing populations and other positive conditions for economic growth.
Table 1-8 compares the G-7 (advanced countries), BRIC, and N-11 by population, GDP, and GDP per capita in 2000, 2010, and 2023.
Using data from the World Bank, PwC has made estimates about future growth of emerging versus developed economies; the result of which appear in summary form in Tables 1-4 and 1-5.