Bulgaria and Macedonia
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Country Economic and Trade Summary Reports
Introduction:
Global marketing managers must understand the economics and trade policies of countries and regions within which they trade. In this assignment, take the perspective of a global marketing specialist who has been asked to compare and contrast the threats and opportunities inherent in market expansion in two underdeveloped countries.
You can choose two countries from the list
1. Hong Kong
2. Singapore
3. Australia
4. New Zealand
5. Switzerland
6. Canada
7. Ireland
8. Denmark
9. United States
10. Bahrain
11. Chile
12. Mauritius
13. Luxembourg
14. Estonia
15. The Netherlands
16. United Kingdom
17. Finland
18. Cyprus
19. Macau
20. Japan
21. Austria
22. Sweden
23. Germany
24. Lithuania
25. Taiwan
26. Saint Lucia
27. Qatar
28. Czech Republic
29. Georgia
30. Norway
31. Spain
32. Belgium
33. Uruguay
34. Oman
35. South Korea
36. Armenia
37. Slovak Republic
38. Jordan
39. El Salvador
40. Botswana
41. Peru
42. Barbados
43. Israel
44. Iceland
45. Colombia
46. The Bahamas
47. United Arab Emirates
48. Mexico
49. Costa Rica
50. Saint Vincent and the
Grenadines
51. Hungary
52. Trinidad and Tobago
53. Malaysia
54. Saudi Arabia
55. Macedonia
56. Latvia
57. Malta
58. Jamaica
59. Panama
60. Bulgaria
61. Kuwait
62. Thailand
63. Romania
64. France
65. Cape Verde
66. Slovenia
67. Turkey
68. Poland
69. Portugal
70. Albania
You will also research to which regional trade zone each of the two countries belong, if any. You will find information on these two countries and regional trade zones by conducting research .
Prepare a written analysis of potential opportunities and threats based on your understanding of the economic and trade summary in each of your two selected markets. Assess the impact and risks associated with the macro global economic, trade, and currency issues involved. In addition, review the impact of each of these elements on the competitive environment and the competitive advantage in your selected regions.
You should provide recommendations for or against market entry based on your assessment of the key environmental elements.
Tasks:
Write a paper answering the following questions:
1. Analyze the stages of market development in both of your selected countries.
a. What is the gross national income (GNI) per capita for each country?
b. What are the key characteristics of the market development stage you have chosen for each of your selected countries?
2. What is the balance of payments for each of your selected countries?
a. How does the balance of payments fit within the norm for the regional trade zone?
b. What are the top three key exports and imports for each of your selected countries?
c. What does this export/import information tell you about each of the countries from an economic development perspective?
3. What is the currency for each country?
a. Is it a common currency with other countries in its trade zone?
b. Is the currency traded internationally?
c. Does the currency float against the dollar, Euro, or other key currency?
d. What has the trend been for the currency value over the past 10 years?
e. Is the currency stable enough to support market development?
4. Analyze the following elements for each of your selected countries (You may refer to and answer the questions for each of the seven areas - Type of economy. Is the nation an advanced industrial state, an emerging economy, a transition
economy, or a developing nation?
Type of government. Is the nation ruled by a monarchy, a dictatorship, or a tyrant? Is there an
autocratic one-party system? Is the nation dominated by another state, or is it a democracy
with a multiparty system? Is it an unstable or terrorist nation?
Trade and capital flows. Is the nation characterized by almost completely free trade or
incomplete free trade, and is it part of a trading bloc? Is there a currency board or exchange
controls? Is there no trade, or does the government dominate trade possibilities?
The commanding heights (e.g., the transportation, communications, and energy sectors).
Are these sectors state owned and operated? Is there a mix of state and private ownership?
Are they all private, with or without controlled prices?
Services provided by the state and funded through taxes. Are pensions, health care, and
education provided? Pensions and education but not health care? Do privatized systems
dominate?
Institutions. Is the nation characterized by transparency, standards, the absence of
corruption, and the presence of a free press and strong courts? Or is corruption a fact of life
and the press dominated by the government? Are standards ignored and the court system
compromised?
Markets. Does the nation have a free market system characterized by high-risk/high-reward
entrepreneurial dynamism? Is it a free market that is dominated by monopolies, cartels,
and concentrated industries? Is it a socialized market with cooperation among business,
government, and labor (but with little entrepreneurial support)? Or is planning, including
price and wage controls, dominated by the center?.):
a. Type of economy
b. Type of government
c. Trade and capital flows
d. The commanding heights
e. State-provided services funded through taxes
f. Institutions and transparency
g. Market system
After completing your analysis, please contrast each element of the two countries, recommending which would offer more potential global marketing opportunities for a large firm.
5. How has the economic downturn affected the economic system in your two selected countries and their trade zone region?
a. What are your selected countries and region's international financial standings?
b. What are their monetary and fiscal policies, and what role do these policies play in expansion of any firm into your selected regions?
c. What is the environment and current level of foreign direct investment in your selected regions, and how does that level impact your company's decision to enter the market?
6. After completing the above analysis, please state key global marketing opportunities you would recommend for each selected country.
7. What is the competitive advantage of expansion in each market, if any?
Deliverables and Format:
Submit your answer in a Word document in four- to five-pages. Adhere to APA formatting and citation guidelines. Click here to download the APA format template you can use for this assignment.
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Solution Summary
Comparative treatment of Bulgaria and Macedonia for economic development.
Solution Preview
Bulgaria and Macedonia and the former Eastern Bloc Zone
Bulgaria and Macedonia are longtime rivals. This, at least, means that Bulgaria, as a would-be hegemon in the Balkans, claims Macedonia as Bulgarian. Some Serbs do as well, and Greece. Macedonia is a part of former Yugoslavia, while Bulgaria, which borders it, was an enemy of Yugoslavia. While very similar in some respects, the two nations are extremely dissimilar, a bit like between Czech Republic and Slovakia, or Poland and Belarus.
Macedonia:
A small "nation" of 2 million, she is one of the newer nations in Europe. Relating to Bulgaria the same way Ukraine relates to Russia, the two nations are economic and political rivals. Looking westward, Macedonia seeks both EU and NATO membership. She will receive neither because Greece will veto it each and every time. The extent to which Bulgaria grows in prominence will also decide on Macedonia's fate. She has a unicameral legislature, a presidency centered around foreign policy, a prime minister that controls domestic concerns, and an independent court system. As one can see, she has adopted the French model of democracy, though she does not use proportional representation. The main political problem she faces is the constant state of war between the Albanian minority and those calling themselves Macedonian (the term is contested).
The basic facts of her economy:
Almost 100% of its rural population have access to clean water. That alone pulls Macedonia out of the status of the third world, even if other aspects of its economy do not. About 20% of its population lives under the poverty level, though it needs to be kept in mind throughout that Macedonia has a huge informal sector. Her GNI per capita is just under $5000. Her GNP per capita is around $10,000 and inflation is respectably low at 3%, yet, her unemployment is not respectable at 30%.
Her main industries are connected to construction and include concrete, wood, textiles and steel. This is quite typical of a formerly communist state. Her privatization has more or less been successful. She imports about $2 billion more than she exports, mostly to Germany, but also to Italy, Bulgaria and Turkey. Despite the contempt Athens has for Macedonia, she still is an important trading partner. She imports manufactured goods such as assembled machinery, thus leaving her dependent and eternally in debt.
She does not have a common currency since she has not been accepted into the EU. Her credit rating is normally BB. From 2000-2012, her GDP growth has averaged about 4%, with particularly bad years being 2001 and 2009. the IMF, significantly, calls Macedonia the "freest economy" in eastern Europe. It has not translated into substantial growth.
She is a member of the European Free Trade Association and the Central European Free Trade Association. She receives about $1 trillion of FDI within her borders yearly. Domestic credit is mostly private sector, and the IMF lists her at #26 in the world relative to the ease of paying taxes. Bulgaria is at 81. Macedonia is a percentage point or two below the regional average in tax rates. Her tax rate ...
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