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Summary Of Dicussion Questions Essay

676 words - 3 pages

DISCUSSION QUESTIONS

1. Explain the difference between market capitalism, centrally planned capitalism, centrally planned socialism, and market socialism. Give an example of a country that illustrates each type of system.

Market capitalism is an economic system in which individuals and firms allocate resources and production resources are privately owned. Consumers decide what goods they desire and firms determine what and how much to produce; the role of the state in

market capitalism is to promote competition. Market capitalism is found in the United States.

Centrally-planned capitalism is an economic system in which command resource allocation is utilized extensively in an ...view middle of the document...

India is in the Low-Income category. China and Brazil fall within the Lower-Middle-Income category. Russia is the only BRIC nation to be in the Upper-Middle-Income category.

3. Turn to the Index of Economic Freedom (Table 2-3) and identify where the BRIC nations are ranked. What does the result tell you in terms of the relevance of the index to global marketers?

All four BRIC countries fall within the “Mostly Unfree” category. This indicates that, while the index and what it stands for are certainly important to marketers, they are not willing to forego the business opportunities presented by these countries.

4. A manufacturer of satellite dishes is assessing the world market potential for his products. He asks you if he should consider developing countries as potential markets. How would you advise him?

Developing markets should prove attractive on the basis of current low product saturation levels. High rates of growth in many developing countries suggest that some segments of the population save enough money to afford expensive electronics equipment such as a satellite dish. A...

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