Economic & Socioeconomic
Forces
Chapter 8
Economic Forces


Why is it so important to study economic
forces?
International Economic Analyses

Whose responsibility?
Economic Dimensions

GDP


What does it do?
GNI per capita

Which is usually chosen:
Low GNI per capita and high growth rate
 High GNI per capita and low growth rate

Economic Dimensions

Income Distribution


Three characteristics
Private Consumption

Discretionary income
Purchase Power Parity
 Developing country trends
 Developed country trends


Concerned with ownership of goods and
consumption of key materials
Economic Dimensions

Unit-Labor Costs




Slow-rising unit labor costs
Why do changes in cost occur?
U.S. trends
Other Economic Dimensions

Large national debts

What can governments do?
Socioeconomic Dimension

Total Population



Market size?
Other considerations
Age Distribution



High birth rates
Lower birth rates
Concerns for developed nations

Example: Japan
Socioeconomic Dimensions

Population Density and Distribution


Population density
Population distribution



Rural-to-urban shift
Other Dimensions



What does it means for managers?
Women workers
Divorce rates
Industry Dimensions