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1-1
The Global Retail Market
Development Drivers
? Decline in cross-border
investment barriers.
? Saturation and slow growth in
local markets.
? Carrefour began the expansion
followed by Tesco and Wal-Mart.
? Retailers believed they would
benefit from economies of scale
from global buying power.
? These retailers held strong
domestic market positions.
Top 25 Retailers
Market Share
%
2000 2009
16
40
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1-2
Average Tariff Rates on Manufactured
Products as Percent of Value
1913 1950 1990 2000
France 21% 18% 5.9% 3.9%
Germany 20 26 5.9 3.9
Italy 18 25 5.9 3.9
Japan 30 5.3 3.9
Holland 5 11 5.9 3.9
Sweden 20 9 4.4 3.9
Britain 23 5.9 3.9
U.S.A,44 14 4.8 3.9
Table 1.1
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1-3
The Growth of World Trade and
Output
0
500
1000
1500
2000
2500
1950 1960 1970 1980 1990 2000
T r a d e
O u t p u t
GDP
Trade
Figure 1.1
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1-4
The Shrinking Globe1500-1840
1850-1930
1950s
1960s
Best average speed of
horse-drawn coaches and
sailing ships,10mph.
Steam locomotives average 65mph,
Steamships average 36mph.
Propeller aircraft
300-400 mph.
Jet passenger aircraft
500-700mph.Figure 1.2
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1-5
CO UN TRY
SHA R E OF
WORL D OU T PU T
1963 ?
SHA R E OF
WORL D OU T PU T
200 0
SHA R E OF
WORL D EX PO R T S
200 0
United Stat es 40.3% 27% 12.3%
Japan 5.5 14.2 7.54
Germany 9.7 (W,Ger, ) 7.3 8.7
Fr ance 6.3 5.2 4.7
United
Kingdo m
6.5 4.1 3.7
Ital y 3.4 4.1 3.7
Canada 3.0 2.0 4.4
Ch ina NA 3.2 3.92
So u th Korea NA 1.4 2.7
The Changing Pattern of World Output and
Trade
Table 1.2
?Output measured by GNP.
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1-6
Percentage Share of Total FDI Stock,1980-2000
0
5
10
15
20
25
30
35
40
45
U,S, A, J a p a n F r a nc e D e v,
C ou nt r i e s
1980
1990
2000
U.
K.
Ge
rm
an
y
Ne
the
rla
nd
s
Figure 1.4
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1-7
FDI Inflows,1988-2000
($ Billions)
0
200
400
600
800
1 0 0 0
D e v e l o p e d C o u n t r i e s
D e v e l o p i n g C o u n t r i e s
U n i t e d S t a t e s
C h i n a
Figure 1.5
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1-8
The National Composition of the Largest
Multinational Companies
1 9 7 3 1 9 9 4 1 9 9 7 2001
U, S, A, 4 8, 5 % 3 0, 6 % 35% 3 6, 8 %
J ap an 3, 5 2 8, 2 2 2, 4 2 0, 8
U, K, 1 8, 8 6 7 6, 2
F r an ce 7, 3 8 7, 8 6, 8
G e r m an y 8, 1 8, 8 8, 4 6, 6
Table 1.3