As international business has attained a new paradigm over the years, it is quite important to know that the economic factors play a formidable role in taking it forward. When a marketer is working on an international basis, it is imperative to craft strategies which are long term, meaningful and prospective in every way. It is also essential to have a fine understanding of the economic factors which have a crucial role to play in the formation of marketing strategies. The way trade is conducted on the modern market scenario is quite different from what happened before.
Today, the entire world is like a trading capital where most of the nations are involved commercially with each other. Trading has a multi dimensional approach nowadays as it being done on several platforms like international, national and local. The development of organisations like World Trade Organisations have played a significant role in carrying forward the aspect of international trade.
When an organisation wants to excel in the format of international business, it needs to have an insight on the economic factors. Before proceeding with the idea of doing business in a country, it needs to gauge the economic condition which exists in the market. A good analytical approach needs to be taken and every detail of the market economy existing in that nation needs to be previewed. When a business plan is made by an organisation ,that too in an alien country a significant amount of investment is necessary. It is imperative to have a prior idea about the return for investment which can be expected in this regard.
If a complete overview of the global economic condition is made, it is seen that different sets of statistics emerge from the 194 nations. Each of the countries are different from each other economically. The level of economic development varies from one to the other. The estimate of the Gross National Income provides a more concise idea about the existing situation. As per the collection of recent data, the GNI in the world stands at 62 trillion US dollars. One of the most common problems which is faced by the world economy is the unequal distribution of wealth. As per a recent survey which has been conducted by the United Nations, 75 percent with respect to global population have been singled out as poor.
The percentage group which has been termed as poor as per the survey does not earn more than 3470 US Dollars (PPP) But the survey also states that 11 percent of population belongs to the wealthy class. This group earns more than 8000 US dollars (PPP). Recently a claim has been made by the United Nations that 50 million individuals are rich globally. But around 3000 million citizens have been termed as poor. When a company wants to do its business in the international market, the level of disparity related to income needs to be closely monitored by it. Before taking the plunge, it is important to analyse the financial capability and the resources needed for the purpose.