Chapter 3 - Pearson Learning Solutions

CHAPTER 3 • REGIONAL MARKET CHARACTERISTICS AND PREFERENTIAL TRADE AGREEMENTS 93TABLE 3-10 The 27 Nations of the EU—Income and Population2006 GNI(in millions)2006 Population(in thousands)2006 GNIper CapitaAustria $329,183 8,281 $39,750Belgium 405,419 10,541 38,460Bulgaria 30,669 7,693 3,990Cyprus 17,948 771 23,270Czech Republic 131,404 10,270 12,790Denmark 283,316 5,437 52,110Estonia 15,302 1,342 11,400Finland 217,803 5,266 41,360France 2,306,714 61,257 36,560Germany 3,032,617 82,375 36,810Greece 305,308 11,147 27,390Hungary 109,461 10,067 10,870Ireland 191,315 4,268 44,830Italy 1,882,544 58,843 31,990Latvia 18,525 2,288 8,100Lithuania 26,917 3,395 7,930Luxembourg 32,904 462 71,240Malta 6,216 406 15,310Netherlands 703,484 16,340 43,050Poland 312,994 38,129 8,210Portugal 189,017 10,589 17,850Romania 104,382 21,590 4,830Slovak Republic 51,807 5,390 9,610Slovenia 37,445 2,007 18,660Spain 1,206,169 44,121 27,340Sweden 395,411 9,084 43,530United Kingdom 2,455,691 60,550 40,560Total/Mean GNI per capita $14,799,965 491,909 $30,087**Indicates meanSource: Reprinted by permission of Warren Keegan Associates, Inc.European central bank and a single European currency known as the euro. In May 1998, Austria,Belgium, Finland, Ireland, the Netherlands, France, Germany, Italy, Luxembourg, Portugal, andSpain were chosen as the 11 charter members of the euro zone.The single currency era, which officially began on January 1, 1999, has brought many benefitsto companies in the euro zone, such as eliminating costs associated with currency conversion andexchange rate uncertainty. The euro existed as a unit of account until January 1, 2002, when actualcoins and paper money were issued and national currencies such as the French franc were withdrawnfrom circulation. Greece joined in 2001; Slovenia became the thirteenth member on January 1, 2007.Cyrus and Malta joined in 2008, and Slovakia adopted the euro on January 1, 2009 (see Exhibit 3-4).000200010270740623Marketing Issues in the European UnionThe European Commission establishes directives and sets deadlines for their implementation bylegislation in individual nations. The business environment in Europe has undergone considerabletransformation since 1992, with significant implications for all elements of the marketing mix.Table 3-11 summarizes some of the marketing mix issues that must be addressed in Europe’s singlemarket. For example, harmonization means that content and other product standards that variedGlobal Marketing, Sixth Edition, by Warren J. Keegan and Mark C. Green. Copyright © 2011 by Warren J. Keegan. Published by Prentice Hall.