Global economic environment &marketing Essay Example | Topics and Well Written Essays - 1500 words

Global economic environment &marketing - Essay Example Secondly, the fact that there was emphasis on the achievement of fairness rather than focusing of liberalization of trade also resulted in disagreement among member states. The fact that certain nations had bargaining power over others and this power was being shifted to other member countries caused a rift between members. Some of these issues reflect on the case study. For instance, one of the guidelines of the organisation was fairness. However, countries usually want to maintain the bargaining power over others irrespective of the fact that globalization has resulted in change and new markets where countries which were not major players in the past are currently significant players in the market. 4.2 In the international market, free trade cannot be fair. This is as a result of the fact that each country wants to protect its indigenous business establishment thus governments end up providing an added advantage over other business organisations in the international market (Salvato re, 2012. For instance, countries such as the United States of America are known to offer subsidies to farmers in order to give them an upper hand in the import and export sector. Question Five 5.1 Various a factors contributed to the economic crisis in Thailand to spread to other south East Asia countries making it a contagion. One of the major factors that contributed to this is that most of the respective governments in the region did not deal with the increasing balance of benefits in turkey, overheating pressures the stock market and property bubbles early enough. The fact that pegged / fixed exchange rates went on for too long was also a major contributor since it resulted in a false sense of stability that encouraged firms in the region to lend huge sums of money to those in Thailand. Finally, the fact that financial markets in the region were not regulated and supervised at the time was also major contributor 5.2 Countries in the region would have been able to prevent such a crisis if they implemented certain policies. Firstly, more supervision and regulation would have helped in ensuring that balance deficits that were present would not have risen to that level (Jackson, 1999). Secondly, countries in the region should have come up with measures that would ensure that stock market and property bubbles could be withstood since they would have been forecasted. Finally, the region would have adopted exchange rates that were not fixed. They would allow the exchange rate of currencies in the region to be determined by the forces of demand and supply. This would have helped greatly since a fall in the Thai baht would indicate something was wrong. Report Introduction There are various indicators that are used to determine the economic position in which a country or a region is in. Such indicators are instrumental in policy and decision making especially for business establishments that operate internationally. Such companies are able to determine if their bus iness ventures will be successful by evaluating indicators such as GDP. This part of the paper will focus on how different indicators have affected particular regions and how they are interpreted by an organisation Gross domestic product (GDP) is an indicator in macroeconomics that is used to measure the economic state of a country. It is the value of all goods and services recognised officially produced within a specific country in a stipulated period. In general, it is used to determine