Question # 1
The Implications of the Global Baby Bust for Marketers of Consumer Goods
Question # 2
The Implication of the Global Baby Bust for Marketers Who Sell to Government
Retirement age is more likely to be acute especially when the baby boomers retire. The government and the marketers who sell to the government now have all the reasons to worry the extent to which people will find affordable the basic demands of an aging population. The government’s worry is the amount of money lost from tax revenues due tax advantages provided in employer-sponsored Qualified Pension Plans (QPPs) and Individual Retirement Accounts (IRAs). Within these schemes, contributions made within limits are tax-deductible. The implication is that the marketers will incur extra costs in selling their products to the government. This is because the QPPs cost the government tax thus projecting the amount of extra revenue that will accrue to the government from the same pension plans when the aged retire. However, it is also true that the same schemes will create increased tax revenues when they retire. This is because the cost of providing a robust health care for instance increase thus there will be a growing demand for health care products, which in turn also offer the marketers revenues.
Question # 3
Why Entrepreneurship in a Nation Declines as its Population Ages and How This Could Affect Global Marketing
The ratio of the working population is smaller than the aging one. Thus, there is an increased dependency ratio between the two entities. This implies that the working population has little left for investments as most of their income is used to support the aged either directly or indirectly through the government schemes. The global marketing implication is that individuals will incline to amass assets while engaged in employment and later spend them after retirement. There is high demand for corporate stock and assets among the working population as they save for the future. This demand however declines after retirement. Such assets lose value consequently facing decrease in demand at the same period despite being highly priced during their periods of employment.
Question # 4
How global baby bust affect the relative attractiveness of different national markets
Global bust in some way denotes a decline in the total number of clients for a particular product. Due to this, it affects negatively on the relative attractiveness of the global markets, as there would be decreased sales of products and incurring of fewer margins especially for countries operating on a global scale. However, business has to continue, and incorporating economic strategies to survive in the global markets is essential. For instance, such companies might opt to maximize their scale of production and sell at lower costs or reduce the scale of production and sell at higher price.
