Huszagh, Huszagh and Hanks (1992)

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Huszagh, Huszagh and Hanks (1992) - Macroeconomic conditions and International Marketing Management

Industries are affected by macroeconomic shifts, services being the most responsive and the primary sector being the least.

Macroeconomic shifts can be caused by the likes of terrorism, recessions, inflation, and war.

Tertiary and service sectors grow when there is an increase in knowledge-intensive production.

There are 3 types of economies:

1. Low-income
2. Middle-income
3. High-income

The level of government involvement can be described as:

1. Market driven – the manager makes all the decisions for the firm
2. Government driven – government planners come in and allocate resources based on “centrally driven economic plans”. Customers invariably come second.
3. Mixed system – and “ad hoc” blend of both.

Services orientated countries tend to have a mixed system and are middle to high-income. These include the Philippines, Japan and Hong Kong, with the exception of Singapore, which is government driven. Those countries which are primary or secondary based are government driven, including China, Malaysia

Macro-economic factors