INT 220 Module Three Assignment Template Economic and Political Environments Comparison Essay

INT 220 Module Three Assignment Template Economic and Political Environments Comparison Essay

When considering a new international market for a new product, factors that should be examined include: cultural and societal differences, economic and political stability, consumer purchasing power, competition, and logistical considerations such as import/export regulations and shipping costs. The purpose of this assignment is to undertake economic and Political environments comparison for Germany, Mexico, and Brazil to determine the ideal market of the new product.

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Section One

The selected product to be introduced into the new market is digital cameras. The data collected on the international market for digital cameras can inform business decisions on expanding the sale of digital cameras in several ways. For example: -Sales data can provide information on the current demand for digital cameras in different countries and regions. If a particular country or region has a high demand for digital cameras, it may be a good market to expand into. Demographic data can provide information on the age, income, and education level of potential customers in different countries. This information can be used to tailor marketing and sales efforts to specific segments of the population. Economic data can provide information on the overall economic conditions in different countries, such as GDP, inflation, and exchange rates (Turner et al., 2019). This information can be used to assess the potential risks and opportunities in different markets. Political and regulatory data can provide information on the laws and regulations that govern the sale and distribution of digital cameras in different countries. This information can be used to identify potential barriers to entry or restrictions on sales.

In terms of weighting data, sales data should be weighted more heavily than other data points in making a decision, as it is the most direct indicator of demand. However, other data points such as demographics, economic conditions and political system should also be considered to have a comprehensive view of the market. For expanding into a new product market, ideal data points would include sales data, demographic data, economic data, and political and regulatory data (Turner et al., 2019). Additionally, having data on the competitive landscape, such as the market share of existing players and the distribution channels they use, would also be valuable. Different political systems may impact a decision in different ways. For example, a country with a planned economy may have strict regulations on the import and distribution of digital cameras, while a country with a free market economy may have fewer barriers to entry. It is important for businesses to have a good understanding of the political and economic systems in different countries before expanding into new markets.

Section Two

Category	Mexico	Germany	Brazil
Political System	Federal presidential representative, democratic republic	Federal/Representative Democracy	Presidential System/ Constitutional Republic
Economic Classification	Developing mixed-market economy	A mixed economic system	Middle income developing mixed economy
Economic Blocs Impacting Trade	United States–Mexico–Canada Agreement (USMCA) and Free Trade Agreements (FTAs)	World Trade Organization (WTO)	MERCOSUR
Gross Domestic Product	1.273 trillion USD (Rosser Jr. & Rosser, 2018)	4.26 trillion USD (Rosser Jr. & Rosser, 2018)	1.609 trillion USD
Purchasing Power Parity	10 LCU per international dollars	0.7 LCU per international dollars	2.53 LCU per international dollars
Gross Domestic Product Per Capita	10,045.68 USD	51,203.55 USD	7,507.16 USD

Section Three

Germany would likely be the most appropriate market to introduce digital cameras, as it has a high GDP per capita and a developed economy. Additionally, German consumers are known for their high level of technology adoption and purchasing power. Mexico and Brazil could be considered next as both countries have relatively high GDP per capita and are classified as upper middle-income economies (Rosser Jr. & Rosser, 2018). However, the purchasing power of consumers in these countries may not be as high as in Germany, and market saturation and competition should be taken into account.

Germany: Most appropriate. Germany has a strong economy, with a high GDP per capita and a high purchasing power parity. It also has a developed market for consumer electronics and a stable political environment. These factors make it an attractive market for introducing digital cameras. Mexico: Moderately appropriate. Mexico’s GDP per capita and purchasing power parity are lower than Germany’s, indicating that the average consumer may have less disposable income to spend on luxury items like digital cameras (Rosser Jr. & Rosser, 2018). However, Mexico’s growing middle class and expanding consumer electronics market make it an attractive market for introducing digital cameras. Brazil: Least appropriate. Brazil has a lower GDP per capita and purchasing power parity than both Germany and Mexico, indicating that the average consumer may have even less disposable income to spend on luxury items like digital cameras. Additionally, the country’s political instability and economic challenges make it a less favorable market for introducing digital cameras.

Conclusion

Germany would likely be the most appropriate market to introduce digital cameras, as it has a high GDP per capita and a developed economy. Additionally, German consumers are known for their high level of technology adoption and purchasing power. Mexico and Brazil could be considered next as both countries have relatively high GDP per capita and are classified as upper middle-income economies.

References

Rosser Jr, J. B., & Rosser, M. V. (2018). Comparative economics in a transforming world economy. Mit Press.

Turner, H. C., Lauer, J. A., Tran, B. X., Teerawattananon, Y., & Jit, M. (2019). Adjusting for inflation and currency changes within health economic studies. Value in Health, 22(9), 1026-1032. https://www.sciencedirect.com/science/article/pii/S1098301519321497

3-2 Assignment: Economic and Political Environments Comparison

Overview

There are many factors that should be examined when considering a new international market. In this assignment, you will explore how a company can qualify or quantify economic factors of markets and how it can influence the process of selecting a new market for a product. As you complete this assignment, consider how the lessons learned and resources used can be applied to your course project.

Prompt

You are an international trade consultant ranking the overall quality of various international markets for a product of your choosing. Select a product you would be interested in introducing to a new market, then complete the Module Three Assignment Template (located in the Guidelines for Submission section of this document). Then rank your recommendations for a new market and justify your rankings using key economic and political data points. Examples of products include digital cameras, activity trackers, curtains, coffeemakers, and so forth.

Specifically, you must address the following rubric criteria:

• Application of Data: Describe your initial thoughts on how insights from the required data to be collected could help to inform business decisions. For example, consider what information each data point provides, whether you think some data points should be weighted more or less heavily than others in making a business decision, what ideal data points might look like for expansion into a new market for your product, the ways that different political systems may impact a decision, and so forth.

• Political and Economic Data Collection: Complete the table in the provided template by finding the appropriate information and data points for each identified category using course and external resources.

• Ranking and Rationale: Rank the appropriateness of introducing your selected product into the three markets from “most appropriate” to “least appropriate” using the gathered political and economic data you collected, then provide a rationale for why you ranked the markets the way you did on the basis of the data you gathered.

Guidelines for Submission

In Sections One and Three, complete sentences should be used. In Section Two, numbers are appropropriate. Sources should be cited according to APA style.