Global Marketing Analysis of Importing Us Agricultural Tractors to Asia-Pacific Markets

Making the decision to expand a small business can be a difficult decision for any business owner. Competition amongst small businesses within the United States can prove to be debilitating for many businesses due to various factors at any given time. The United States holds less than 5% of the entire world population; therefore, 96% of consumers live outside of the United States. At a recent international trade symposium held in Washington D.C., the Small Business Administration emphasized that today 's global markets present both challenges and opportunities. "In the global economy of the 21st century, our competition is not just the firm down the road. Our competition

The Complete Idiot's Guide to Economics © 2003 by Tom Gorma Retrieved on February 27, 2012 http://www.infoplease.com/cig/economics/effect-imports-exports-gdp.html

The population of the Asia region of the world contributes a massive amount of exporting goods, and global business as a whole. The sheer number of people consuming goods that must be imported to support the large population force the need for trade with other regions. The demand for resources is high and the need to develop strong trade relations with other countries is vital to the continued growth and success of Asian countries.

The main area where Canada can maximize in expanding their market is with the Asian Countries.

The term competitiveness defines the ability of a region to export more than its imports while including all “terms of trade” to reflect government legislation and import barriers. In other words, according to the world competitiveness report, competitiveness is “… the ability to design, produce, and market goods and services, the price and non- price characteristics of which form a more attractive package than those of competitors.” (Pg3.) Each nation has different competitiveness level, which relies on multitude factors such as; raw materials, innovative technologies, energy prices, the type of economy, legislations, and the exchange rate fluctuations. Nevertheless, the prosperity of countries depends on the nation’s competitiveness status.

The importance the United States attaches to its trade with the Asia-Pacific region has promoted China's economic development. In 2006, the U.S.-Asia-Pacific trade volume reached 2 trillion U.S. dollars. The U.S. investment in the region amounts to 774 billion U.S. dollars, which has brought tremendous benefits to the countries in the Asia-Pacific region including China.

When people first invested in the Asia-Pacific region, they would have viewed Japan and Australia as the buffers for volatility of the emerging markets. Now, they view this region as more than just Japan and Australia. Other countries, which are previously regarded as economic laggards, now rise up competing as e-services hubs. This is definitely going to be the Asia-Pacific century.

Global COMPETITION in the industry: Global competition has expended in the auto industry because of an increase in global trade. This has resulted in the decline of sales in the American auto industry whilst sales in the Asian industry especially China has increased. In 2009 sales in the U.S. hit their lowest point meanwhile, it doubled in Asia generally, especially in China. (loc.gov. 2014). One of the reason for this decline in the American Auto sales is because the Japanese automakers have altered the U.S. manufacturing models and are selling it in the global market at a less expensive rate. The price and innovation is attracting a lot of customers’ to this part of the world leaving the American industry to suffer.

As Australian firms develop and deliver services and products to Asia, they drive incomes and living standards for Australians. Non-resource exports to Asia already generate A$65b of revenue while Australian has A$74b of direct and portfolio investment in Asia. Yet despite the rapid growth of Asia, Australia’s share of non-resource imports into the region has fallen over the past decade. If Australia could arrest this decline or even increase its non-resource share of Asian imports to peak levels of 2001 Australia could gain between A$10b and A$30b in annual export revenue by 2021. Over the next decade this could be worth between A$60b-A$125b in total value for the Australian economy. These estimates do not account for revenue from Australia’s direct and portfolio investment stock in Asia and further revenue from Australia’s direct and portfolio investment stock in Asia and further revenue likely to flow from the increased resilience and adaptability of Australia’s institutions and firms

We can measure a countries production based on GDP, PPP numbers. In terms of GDP, PPP the top 10 countries in the world vary drastically form GDP, per capita, PPP rankings. In overall GDP, PPP rankings you see huge nations like the US and China, while on a per capita basis you see rather small countries with great output like Qatar or Singapore. There is a vast difference in the countries on the list as not one country is placed on both lists. The main reason is due to population size. GDP per capita is measured by dividing GDP by total population. Thus, the countries in the GDP per capita rankings produce a lot of product with a relatively small population. Therefore, small population countries with good output stand out, while in terms

Vietnam is a densely populated developing country in the Southeast Asia. Since independence in 1975, though launching of several economic reforms and extensive efforts for macroeconomic stability, infrastructure development and environmental sustainability, Vietnam has transformed from one of the poorest country in the world to a lower middle income country with current GDP of $186.2 billion (Tradingeconomics, 2016). During the past two decades, Vietnam has become one of the leader in agricultural sectors and a foreign investment attractive destination. The country has had made impressive progress with GDP growth of 5.5 percent in 1990s to 6.4 percent in 2000s, making Vietnam one of the fastest growing countries in the world and it is expected to be more strengthen in the near future (World Bank [WB], 2016). Recently, the nation has concluded the Trans-Pacific Partnership (“TPP”) free trade agreement negotiation along with other 12 nations, which create more opportunities for the country to integrate into regional and global economies. This essay will briefly discuss about Vietnam’s economic transformation in general and particularly with its trading pattern in the past two decades.

The current growth of Asia has been remarkable especially post the 1997 crisis, the purpose of this assignment though is to understand whether the current strategy of Asia would witness the same growth in the coming years or not and whether by 2050 it would be responsible for more than half of Global GDP.

Before analyzing, I have three important points to emphasize in order to explain the reasons why I choose these certain levels and fields. First, due to the limit resources I have right now, it is impossible for me to find out the micro level information within each country, which include people’s willingness of acceptance the imported goods, the degree of dependence on local brands, the market share of the local pamper brands in the local market, and the market saturation of pamper products. As the result, I decide to examine these countries in a macro level. Second, since we are only aiming to find the entry market, we do not have to firstly worry about the financial status quo such as investment flows, debt controls, or inflation rate. Third, my analysis is based on 2014’s data and information provided by global EDGE; I am not using any current news or updated policies in each country as the analyzing standards. For example, China’s recent policy of allowing each couple to have two children would definitely affect the demographics of population and population growth, whereas I am not going to use

Looking back, the next generation’s economists may be puzzled by the structure of the world economy in 1995. Today, developing countries (DCs) and the former Soviet bloc account for about one half of world output and the rich industrialized countries for the other. But this picture is likely to change rapidly over the next 25 years: At current growth rates, the rich world’s share of global output could shrink to less than two fifths by 2020. Although the absolute magnitudes are uncertain, it is safe to assume that there will be an enormous shift of economic power from today’s rich countries to what are still labeled DCs, and especially to Asian DCs This shift is the likely result of the ongoing globalization of economic

New Zealand, a country with a population of more or less four million five hundred thousand and the Philippines, a country with a population of almost a hundred million are operating on a more or less equal Gross Domestic Product. Obviously there is a disparity in terms of per capita income between the two countries. The reason why I have cited the above information is because I wanted to emphasize the country-wide impact of trade for these two trading partner country. Yes, I know that neither country has anything to do with each other’s population but the fact still remains that the gigantic difference in population affects current and future trading between these two trading partner.