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A two-stage study has shown, that women, who follow Mediterranean diet in pregnancy, also protect their babies from childhood asthma and allergy. During the first stage of the study, 1997, doctors recruited 507 women who attended an antenatal clinic on Menorca, Spain. These women were quizzed about their dietary habits. Six years later the children of these women were examined for asthma and were tested to see if their organisms responded to six common allergens. The researchers found, that the diet of children did not influence the fact whether they had these problems. The main reason was the dietary intake of the mothers while pregnant.

Study Results

The researchers elaborated the Mediterranean Diet Score System, which measured the consumption of fruits, vegetables, olive oil, nuts, legumes, fish and wholegrain cereals. One third of the quizzed mothers had a low rating on this score, while two-thirds had a high score. At the same time children from the “low score” group were almost twice likelier to develop allergies and about four times as likely as children from the “high score” group, to develop asthmatic symptoms.

What is the Mediterranean Diet

There are two main components in the Mediterranean diet: antioxidants (vitamin compounds that kill free radicals) and polyunsaturated fatty acids. In our case the first ones were found effective against asthma in babies, the second ones protected against inflammation.

In general, the Mediterranean diet consists of the following products:

• lots of fruits and vegetables,
• fish,
• bread
• wheat and other cereals,
• moderate amounts of red wine.

Mediterranean diet differs from that one typical to the Americans a lot: the second one has the high amount of animal fats, while Mediterranean diet means first of all the consumption of a lot of olive oil, which lowers cholesterol levels in the blood, blood sugar level and blood pressure. This is why Mediterranean diet is associated with longevity.

A new study conducted by Nestlé Research Center along with a team from Imperial College London has found, that probiotics, such as drinking yoghurts, which contain live bacteria, may have a serious effect on the metabolism. As probiotics contain potentially beneficial bacteria playing an important role in the metabolism, they have an effect on the biochemistry of the gut microbes. Probiotics contain so-called “friendly” bacteria, which help the digestive system. The study of how exactly it occurs was the goal of the research.

Probiotics Effect Fat Amount

The researchers had used two groups of mice for figuring out, how probiotics effect the metabolism. One group had received probiotic treatment, and the other one had not. Then different metabolites in the liver, urine, blood and faeces of both groups were compared. The researchers observed many biochemical changes in how the mice treated with probiotics metabolized bile acids. These acids are produced by the liver and their primary function is to emulsify fats in the upper gut. As probiotics had an effect on the way in which bile acids are metabolized, then they can influence the amount of fat the body can absorb.

How Probiotics Influence the Metabolism

The study shows, that adding the “friendly” bacteria contained in probiotics change the makeup of the bugs in the gut. It increases the number of these bacteria and works with other bacteria in the gut amplifying their effects. Probiotics interact with other bacteria and indeed influence the local microflora. The changes probiotics bring about have to be studied further to find out the influence on overall health. But what is established is that probiotics can change the dynamics of the whole microbes population in the gut. Further researches will open up the possibility of developing new probiotic therapies and finding customized nutritional solutions to maintain or enhance health at an individual level.

Hey, don’t go to the kitchen! Stop! Don’t open the fridge, no-nooo! Please, stop it. No, please, not the cake and not the coke. At least not now – it’s 10 p.m. already. Hey, put it back right now! Close it! What about your figure? Don’t open your mouth! Don’t eat it!
Don’t!
No!
NOOOO!

Sometimes you just can’t resist eating a cake, chips or some fried pork before sleep. And you are sure to drink something absolutely unhealthy with it. It happens, because you see the food and it looks very appetizing. You may try lots of dieting plans, weight loss pills, read special books to the topic, but there will be a day, when you finally fail and start to eat what you want and when you want. To rid you of this problem, Japanese scientists have developed Blue Shade Glasses, which make food less attractive. This gadget is a pair of glasses with blue lenses, which “colors” the food blue. Blue is the color which decreases appetite. Food appearing in blue colors looks weird and absolutely not so irresistible.

Compare these two pictures of the same appetizing dish.

This is an example of how food changes due to the blue shade glasses. It differs a lot, right?

It’s a well-known fact, that nutritionists recommend to eat from blue plates to lose weight, but as you can’t take blue dishes with you everywhere, there have been developed weight loss blue shade glasses. I haven’t tried the glasses myself, but I would like to know, how they work in practice. The weight loss shade glasses can be now bought only in Japan for $20. Looking forward to them in other countries.

Most women trying to be thin and lose weight don’t eat bread. But in reality coarse meal bread and whole grain bread can reduce the risk of breast cancer in young women. This has been found due to a seven-year study of 35000 women. According to the researchers, 350 patients developed malignant breast tumor before menopause. All of them consumed food rich in proteins instead of fibers. As a result, this type of diet was one of the causes of breast cancer. Pr. Janet Cade from University of Leeds claims, that nutrition can have a dramatic impact on cancer development in young women.

The researchers did not find the link between diet and breast cancer for older women, but before menopause particular diets contribute to breast cancer. This means, that those preferring healthy food rich in fibers are less likely to develop breast cancer. To prevent breast cancer eat cereals, muesli, grains, bread, pasta, fruits and vegetables, as they are rich in fibers.

Today many people take care of their health. We try to eat less and avoid eating some foods, which are regarded to as unhealthy. Such ones are junk food, sweets, fried foods and so on. The consumption of some of the food we think is unhealthy should be restricted, such as pork (as it contains a lot of fat) and eggs (as they are rich in “bad” cholesterol). Some should be not consumed at all, such as coke. Some foods we just try to avoid, as we are sure, they can make us fat and unhealthy, but these foods are in reality not so bad and can even do you good. Here are some of them.

Red Meat

100 grams of beef contain 129 kilocalories and 4,5 grams of fat, while the same 100 grams of chicken also have 129 kilocalories and 4,5 grams of fat. At the same time beef contains three times more iron and four times more zinc, which are needed by your body.

Ice-cream

It has occurred, ice-cream is digested slowly, this is why one needs only a little ice-cream to feel satiated for a long time. Choosing from various diets, note, that a scoop of ice cream (75 grams) contains 114 kilocalories and 6 grams of fat, while a usual cheese bun contains 511 kilocalories and 43 grams of fat.

Butter

Some people don’t eat butter at all to prevent some diseases, while it’s so beneficial to our health. In reality you can’t eat a lot of butter, for example, you would need only a little butter for a sandwich, that is, 8 grams of fat, which won’t, of course, cause a cardiovascular disease immediately. Butter is one of the rarest foods containing vitamin В and beta-carotene – antioxidant, which is healthy for your heart and lungs.

Mutton Kebab

Strange as it may seem, a portion of kebab is one of the “safest” fast foods. One portion contains 232 kilocalories and 6 grams of fat, while a standard hamburger has 250 kilocalories and 8 grams of fat.

Most foods we know can be both healthy and in some cases cause illnesses. Moderate consumption of various kinds of foods can be beneficial to your health. Don’t overeat and make sure your body consumes enough necessary vitamins, minerals and other healthy substances with food you eat.

It seems to me, there’s no woman among friends of mine who have never tried to lose weight by dieting. I myself heard the word “diet” already in my childhood. I remember my mom eating only boiled meat or only drinking kefir during the whole day to become slimmer. She read about such diets somewhere in a newspaper or they were recommended by her friends. But did my mom do this the right way? And do you do it correctly? Here are top 6 mistakes women make while dieting. I hope, you can correct them.

Dieting Mistake 1. Dieting without Doctor’s Consultation

Never start a new diet without an expert’s consultation. Every organism is unique and has its own peculiarities, this is why the diet which made your friend slim is not necessarily going to make you lose a lot of excess weight, too. When choosing a diet, take into consideration the peculiarities of your health and environment: weight, age, profession and so on. The causes of your excess weight may be different as well. Some people gain weight only because of a wrong diet, while some may be ill, which makes them obese.

Dieting Mistake 2. Eating Only Unvaried Food

There’re a lot of myths about how nice it makes one lose weight, if they eat only buckwheat, for example. Any diet containing unvaried food is very dangerous, as it makes your body receive only a certain set of vitamins and minerals, while it still needs other ones, too. Extremely dangerous are those diets excluding animal proteins, that is, meat. If you have decided to become vegetarian, start eating vegetable food very carefully. Make sure, that your body receives enough iron. Dairy products are of vital importance, as they provide your body with calcium. Imagine, what can be said about starvation diet. Remember, that lack of food can do a lot of harm to your body.

Dieting Mistake 3. Trying to Lose Weight Only by Dieting

This is a big mistake to believe, that it’s possible to lose weight, if you only diet. Well, you can probably lose some kilograms, but you will gain them back, as soon as you stop your diet. A thin body can be achieved only by combining dieting with physical exercises, as well as changing your way of life. It’s not so important, what you eat and how much of it you eat. Pay more attention to how much you move. So, you need both a healthy diet and a healthy living.

Dieting Mistake 4. Combining Dieting with Stresses

Avoid stresses. There’re lots of people, who may lose their temper and start eating everything they see exactly in stress situations. If you notice such behavior of yours, it’s a problem for dieting. Don’t start dieting, if you’re not sure you will be able to complete what you’ve started.

Dieting Mistake 5. Losing Too Much Weight Too Quickly

Don’t strive for losing as much kilograms as possible as soon as possible. One could lose flesh during the first month due to the lack of excess water in the body. But loosing more than 3 kilograms in one month can be dangerous for your health. If it happens, your body loses non-fatty tissues as well as fatty ones, which is inadmissible.

Dieting Mistake 6. Combining Various Diets

Don’t try to combine different diets. One weightloss method can contradict another one. And combining such diets may be harmful to your health.

Remember, that after dieting for some period of time and achieving a slim bodyhealthy dieting and exercising. So, take some time for regular physical exercises and take care of what you eat over the period of your entire life. you were striving for it’s possible to gain all your kilograms back, if you stop

Normally our skin is elastic, but if you grow really fast, there appear lines on the body which are called stretch marks. It can happen during puberty, pregnancy or postpartum, when the body changes a lot and quickly. The usual places for them are abdomen, breasts, armsthighs – that are all body parts with larger amounts of fat. Postpartum depressions is also not a rare case. When here appear stretch marks too, postpartum period is becoming nearly beyond endurance. Sometimes stretch marks become almost imperceptible after some postpartum time passes. But sometimes they are so deep that they could even be felt by their haver. and

What is a stretch mark?

Our skin consists of three layers: the epidermis (the outer), the dermis and the subcutaneous stratum (the inmost). No stretch mark can appear if there’s enough support in the dermis. The hormones, responsible for the occuring of stretch marks, prevent the forming of collagen and elasting fibers in the fibroblasts. Collagen and elasting fibers are the main and very important supportive materials when the skin is quickly stretched. As a result of their lack the dermis and the epidermis tear. I these places occur unpleasant stretch marks, spoiling the appearance of our beautiful bodies.

How to prevent stretch marks?

In order to prevent stretch marks, some doctors recommend stomach moisturizing during pregnancy. But it doesn’t mean it could help everyone. For some women stomach moisturizing prevents stretch marks, but some are simply prone to them. About 80% of pregnant women develop stretch marks to some degree. The skin needs to be more flexible to be prepared for pregnancy. Balanced diet, being well-hydrated and moisturizing the pregnant belly help avoid stretch marks. What is also to do with stretch marks is to use creams or undergo laser treatments; dermabrasion is one more remedy. Collagen hydrolysates, Gotu Kola extract and vitamin E can reduce the chance of the occurrence of stretch marks. In case they are too deep they can be removed by more drastic methods provided by the modern medicine. But if it’s not the case, the mentioned ingredients help significantly improve the appearance of the existing stretch marks.

Whether your stretch marks are deep or superficial, don’t hung up on the bad, you are beautiful even with stretch marks!

Every woman can have a particular time in her life, when she is prone to develop stretch marks. Some women just have a genetic predisposition to stretch marks and get them without significant reasons. Other women never develop stretch marks even after 4 pregnancies, but such lucky beauties are rare species. I have already written about the occurrence of sretch marks and some ways of their preventions. In this story I am sharing with you are some other remedies for stretch marks, which, though they are effective against stretch marks, can be made at your home.

Unfortunately it is impossible to totally get rid of stretch marks using only home remedies. What you can do at home to stretch marks is to make them less noticeable. Here are some useful tips for it:

1. Exercise more, because it tones your muscles and makes your skin more elastic.
2. Eat food with plenty of protein and rich in vitamin C and vitamin E, because they promote good tissue growth.
3. Massage your body in the places, where stretch marks occurred. In order to make the massage more effective, use olive oil.
4. Apply cocoa butter and elastin cream on the stretch marked areas of your body.
5. You can also try the following recipe against stretch marks.

1/2 cup virgin olive oil.

1/4 cup aloe vera gel.

liquid from 6 capsules of Vitamin E.

liquid from 4 capsules of Vitamin A.

Take these ingredients, mix them together in a blender. After that pour the mixture into a jar and store it in the fridge. Apply the substance on the body areas, where you have stretch marks and, as you are prone to them, apply it also on other zones without stretch marks, but where stretch marks normally appear (abdomen, hips, thighs and breasts). This will help reduce the size and appearance of the existing stretch marks and prevent their further occurrence.

The origins of the classic French manicure are difficult to trace. Some insist that the simple design, a clean pale pink nail with white tip, originated in France in the 1800’s, while others credit Max Factor for creating the look for Paris fashionistas in the 1930’s. American brand Orly definitely trademarked the term here in the States in 1978 with their popular at home kit. Yet, in recent years, the prevalence of statement-making hues like Chanel’s Vamp and Black Satin have attracted all of the attention while the sad French manicure languished in the corner. And though women in middle America may sport the French mani regularly, it’s a rare occurrence to see a chic woman in New York with the design. It makes one think…is the French manicure a trend of the past? Here are four different opinions of polish experts on the topic.

Opinion #1. French Manicures are passé

French Manicures are definitely passé. They used to be done to make believe that the nail plate was longer and used to create an illusion. To me, they are not elegant at all. The most elegant is the short, clean and natural nail plate. Use a shape that is natural to your finger - not overly square or too rounded. The only reason I would ever recommend a French manicure is a form of treatment for people with extremely short nails….a form of make-up so to speak to make them look longer.

Opinion #2. Most French Manicures Look Fake and Tacky

A French manicure can look polished and classic if done well using an ivory or off white tip, dubbed the American Manicure. The problem is that most French manicures I see look fake and tacky because they have a stark white tip and are usually done on thick poorly executed acrylic nails. Besides there is such an incredible color range of polish on the market, why not have a little fun with your nails?

Opinion #3. Black Nails are the New French Manicure

They are so Cathy Lee “Over!” Why? Because the French really had nothing to do with that… Second, one of the top editors of a major fashion mag here in NY told me so…Black nails are the new French manicure.
That said, there is a whole group of women that still LOVE the French and can’t let go, so if you must, make sure you don’t get French on the same day you wear a David Cassidy hair cut and highwaisted Jordache Jeans. A ton of people will agree that a French still looks pretty good…but one bit of advice - STOP wearing it on your feet!
Here’s some good news: wear what you like and what works for you. If you like it and wear it with confidence, who cares…

Opinion #4. French Manicures Have Stood the Test of Time

French manicures are considered the “sexy woman’s red” or perfect for the “classic, sporty soccer mom.” They have stood the test of time and have become a standby for many special occasions for women, although it’s important to note that not every woman can sport the French manicure! If someone is a nail biter or has short chubby fingers, a French manicure will only enhance these flaws. If this is the case, it is then best to go with the color of the season, and this season colors are so rich and pigmented that they are hard to resist.

Source: beautynewsnyc.com

We often hear the adage that the eyes are the windows to a person’s soul. In a sense it is true, because we can almost always know what kind of person someone is, or what is the underlying meaning of the words he or she speaks, simply by looking at the eyes. The eyes are prominent features of the face and are used a lot in communicating through non-verbal language. A person’s eyes are the features that attract attention whenever other people look at the face, women would do well to play up their eyes to enhance the face. There is nothing more attractive than lovely, tantalizing eyes.

The trick to creating eyes that will merit more than a second glance lies in the proper application of eye makeup, particularly the eye shadow. Here are a few tips and tricks guaranteed to make the eyes look enchanting.

Blend it Well

One of the keys to perfectly made-up eyes is in how the colors of the eye shadow are blended on the lids. The colors of your eye shadow should be flowing smoothly and harmoniously from one shade to the other upon your lids. To do this, you will need to use three colors for your eye shadow: the base color, the main color, and the highlighter. Apply the base color on your eyelids first, and then put on the main color. Afterwards, highlight the crease of your eyes.

Bring out the Color of Your Eyes

The colors of your eye shadow should bring out the color of your eyes, whether to match it or to go in contrast. Experiment with colors and see how well they go with your eyes.

Leave Your Brow Bone Alone

Putting eye shadow on your brow bone is too much; simplicity goes a long, long way. Put color up to your brow bone, but leave the brow bone itself alone.

Highlight Carefully

The purpose for putting highlighting color on the eyes is to set the eyes off and to complete the effect you are trying to achieve with your eye makeup. So it is important to apply your highlighter carefully. Blend your highlighter at the outer edge of the crease to make your eyes look larger. If your highlighter is too close, you will end up with beady-looking eyes.

Use a Primer

Use a primer before applying your eye shadow. Using it makes your eye shadow look smoother and also makes it last longer on your eyes.

Tone down the Shimmer

Shimmer is great for bringing out the eyes, but be careful in laying it out – it can bring out not just the eyes, but also the lines and the wrinkles.

Limit the Smoky Hue

If you are trying your hand at a smoky eye, try to keep your color on the eyelid and don’t let it come close to the crease.

Work the Lips

If you want to have dramatic red lips, keep your eye shadow light and use a concealer to hide unsightly lines on your lids. You would not want to look like a clown with red lips and heavy eye shadow.

Brighten with White

To make your eyes seem brighter, add a few dots of white just on the inside of eyes.

Color, Color, Color

Experiment with various shades of eye shadow. If you have bought something that you find too dark or bold for you, try to mix it with other colors.

You do not wear your beloved black sweater, avoid dates and job interviews? About one-third of the U.S. population is affected by dandruff. Dandruff is a very annoying problem – it looks dirty on the hair, causes itching and hair fall. It also troubles the face skin: those, who suffer from dandruff, are also prone to develop acne and pimples. There are different anti-dandruff products, but they don’t help in every case or can cause allergy, which even aggravates the problem of dandruff. For such situations there are home remedies, which can be much more effective against dandruff, than anti-dandruff shampoos. If you do not develop allergy to anti-dandruff products, it is recommended as more effective to use both special shampoos and home remedies to get rid of dandruff faster.

How to Treat Dandruff?

The following home remedies are very useful in the prevention and treatment of dandruff. They can seem the grandma’s advice, but the same ingredients are used for the production of anti-dandruff products. If you prepare the masks yourself, you get the 100% natural remedy for dandruff, which is effective, and you know for sure, what is inside the mixture you apply on your scalp.

• The first home remedy for dandruff is Aloe Vera. Rub Aloe Vera gel into your scalp, leave it for 10 minutes and wash your hair with a mild shampoo. Do this regularly to get rid of dandruff.
• In order to treat dandruff, use lemon, as it helps restore the pH balance of your scalp. Mix 15 ml of coconut oil with a few drops of lemon juice and massage it into the hair. Leave it so for the night and wash off the next day. This mask will reduce dandruff.
• One more effective dandruff treatment is the mixture of 1 teaspoon of lemon juice and 2 teaspoons of vinegar. The mixture should be massaged into the scalp and then washed off.
• Another valuable prescription for elimination of dandruff is the use of Eucalyptus oil. Mix a few drops of it with 20 ml coconut oil and massage into the scalp to remove the flakes. Do this twice a week for a couple of weeks to get rid of dandruff.
• Aspirin is also very effective to eliminate the problem of dandruff. Crush and powder two tablets and mix with your shampoo. Leave this mixture on your scalp for a pair of minutes and then rinse thoroughly.
• Henna is one of the most essential remedies in the treatment of both hair loss and dandruff. It helps restore the health of the hair. Henna powder mixed with other ingredients is very effective in dandruff treatment.
• Another way to cure dandruff at home is olive hair mask. Mix the olive oil with almond oil. Rub the mixture into the scalp and leave for several minutes, then wash off.

Tips for Dandruff Cure

• Massage your hair regularly (for example, when shampooing or applying a mask). This will stimulate the blood flow to the scalp and helps remove dead cells.
• Try to change your lifestyle, if you are often stressed, as this can also be the cause of dandruff.
• Make sure, that you consume enough vitamins B6, B12, zinc, beta-carotene, and selenium in your diet.
• Avoid excessive use of a hot hair dryer.
• Check your hair products, as they can add oils to your scalp and cause dandruff.
• Shampoo your hair regularly.
• Avoid the use of chemicals on the scalp (such as chemicals used in hair coloring).

Chapter 1

A company that engages in global marketing focuses its resources on global marketing opportunities and threats. Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiar marketing mix elements (the four P's) to create global marketing programs. Marketing, R&D, manufacturing, and other activities comprise a firm's value chain; firms can figure these activities to create superior customer value on a global basis. Global companies also maintain strategic focus while relentlessly pursuing competitive advantage. The marketing mix, value chain,


competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors.

A firm's global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is the nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix elements in the localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Third, the pursuit of global marketing opportunities requires cross-border coordination of marketing activities. Finally, a firm's GMS will address the issue of global market participation.

The importance of global marketing today can be seen in the company rankings compiled by the Wall Street Journal, Fortune, financial Times, and other publications. Whether ranked by revenues, market capitalization, or some other measure, most of the world's major corporations are active regionally or globally. The size of global markets for individual industries or product categories helps explain why companies "go global." Global markets for some product categories represent hundreds of billions of dollars in annual sales; other markets are much smaller. Whenever the size of the opportunity, successful industry competitors find that increasing revenues and profits means seeking markets outside the home country.

Company management to be classified in terms of its orientation toward the world: ethnocentric, polycentric, regiocentric, or geocentric. An ethnocentric orientation characterized as domestic and international companies;international companies pursue marketing opportunities outside the market by extending various elements of the marketing mix. A polycentric worldview predominates at a multinational company, where the marketing mix is adapted by country managers operating at autonomously. Managers at global and transnational companies are regio centric or geocentric in their orientation and pursue both extension and adaptation strategies in global markets.

Global marketings importance today is shaped by the dynamic interplay of several driving and restraining forces.

Driving forces include:

• needs and wants
• technology
• transportation and communication improvements
• product costs
• quality
• world economic trends
• opportunity recognition to develop leverage by operating globaly

restraining forces include:

• market differences
• management myopia
• organizational culture
• national controls such as non-tariff barriers

Chapter 1 -- vocabulary

Global marketing -- involves an understanding of specific concepts, considerations, and strategies that must be skillfully applied in conjunction with Universal marketing fundamentals to ensure success in global markets
value chain -- The set of activities required to design, procure, produce, market, distribute, and service a product or service
value equation -- value = benefits/price (money, time, effort, etc.)
competitive advantage -- The benefit for consumers and/or customers which competitors may find difficult or uneconomic to replicate
global industry -- competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale



focus -- the concentration of attention on a core business or competence
global marketing strategy (GMS) --
global market participation -- the extent to which a company has operations in major world markets
ethnocentric orientation -- person/persons who assumes that his or her home country is superior to the rest of the world
polycentric orientation -- an attitude or outlook that describes management belief or assumption that each country in which he company does business is unique



regiocentric and geocentric orientations -- a re-geocentric focuses on a region and geocentric views the entire world as a potential market and strives to develop integrated world market strategies

Chapter 2 -- summary

The economic environment is a major determinant of global market potential and opportunity. In today's global economy, capital movements are the key driving force, production has become uncoupled from employment, and capitalism has vanquished communism. Based on patterns of resource allocation and ownership, the world's national economies can be categorized as market capitalism, centrally planned capitalism, centrally planned socialism, and market socialism. The final years of the 20th century were marked by a transition toward market capitalism in many countries that had been centrally controlled. However, there still exists a great disparity among the nations of the world in terms of economic freedom.

Countries can be categorized in terms of their stage of economic development: low income, lower -- middle income, upper -- middle income, and high income. Countries in the first two categories are sometimes known as less developed countries (LDCs). Upper middle income countries with high growth rates are often called newly industrializing economies (NIEs). Several of the world's economies are notable for their fast growth; the big emerging markets (BEMs) include China and India (low income), Poland, Turkey, and Indonesia (lower middle income), Argentina, Brazil, Mexico, and South Africa (upper middle income), and South Korea (high income). The group of seven (G7) and Organization for Economic Cooperation and Development (OECD) represent two initiatives by high income nations to promote democratic ideals and free-market policies throughout the rest of the world. Most of the world's income is located in the Triad, which is comprised of Japan, the United States, and Western Europe. Companies with global aspirations generally have operations in all three areas. Market potential for a


product can be evaluated by determining product saturation levels in light of income levels.

A countries balance of payments is a record of its economic transactions with the rest of the world; this record shows whether a country has a trade surplus (value of exports exceeded by you of imports) or a trade deficit (by you of imports exceeds value of exports). Trade figures can be further divided into merchandise trade and services trade accounts; a country can run a surplus in both accounts, a deficit in both accounts, or a combination of the two. The US merchandise trade deficit was 549 billion in 2003. However, the


US enjoys an annual service trade surplus. Overall, the United States is a debtor; Japan enjoys an overall trade surplus and serves as a creditor nation.

Foreign exchange provides a means for settling accounts in different currencies. The dynamics of international finance can have a significant impact on the nation's economy as well as the fortunes of individual companies. Currencies can be subject to evaluation as a result of actions taken by a countries central banker. Currency trading by international speculators can also lead to evaluation.

When a country's economy is strong or when demand for its goods is high, its currency tends to appreciate in value. When currency bodies fluctuate,


firms face various types of economic exposure. These include transaction exposure and operating exposure. Firms can manage exchange-rate exposure by hedging, for example, by buying and selling currencies and the forward market.

Chapter 2 -- vocabulary

market capitalism -- an economic system in which individuals and firms allocate resources and production resources are privately owned. Consumers decide what goods they desire and firms determined what and how much to produce
Centrally planned socialism -- the state has broad powers to serve the public interest as it sees fit. State planners may decisions about what goods and services are produced and in what quantities; consumers spend their money on what is available. Government ownership of entire industries, as well as individual enterprises
centrally planned capitalism and economic system in which command resource allocation is utilized extensively in an environment of private resource ownership
market socialism -- Mark allocation policies are permitted within an overall environment of state ownership
G-7 -- Group of 7 -- high income countries, the United States, Japan, Germany, France, Britain, Canada, and Italy. Finance ministers, central bankers, and heads of state from the seven nations have worked together for a quarter of a century in an effort to steer the global economy in the direction of prosperity and to ensure monetary stability
Organization for Economic Cooperation and Development (OECD) -- institution comprised of high income countries, the 30 nations that belong to the OECD believe in market allocation economic systems and pluralistic democracy
The Triad -- Japan, Western Europe, and the United States. These three regions, represent the dominant economic centers of the world. Today, nearly 75% of the world income is located in the Triad
purchasing power parity (PPP) --Model of exchange rate determination stating that the price of a good in one country should equal the price of the same good in another country, exchanged at the current rate
economic exposure -- impact of currency fluctuations on the present by you of the companies expected future cash flows
transaction exposure -- arises when the companies activities result in sales or purchases denominated in foreign currencies
hedging --Reducing exposure to risk of loss resulting from fluctuations in exchange rates, commodity prices, interest rates etc
forward market -- a mechanism for buying and selling currencies and a preset price for future delivery

preferential trade agreement -- a mechanism that confers special treatment on select trading partners
free trade area (FTA) -- formed when two or more countries agree to eliminate tariffs and other barriers that restrict trade
free trade agreement -- the ultimate goal of which is the rare duties on goods that cross borders between the partners
rules of origin -- used to discourage the importation of goods into the member country
customs union -- represents the logical evolution of a free trade area
common external tariffs (CETs) -- When a goup of countries form a customs union they must introduce a common external tariff. The same customs duties, quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation
common market -- Where two or more countries agree to form a customs union between themselves and a common external tariff against goods and commodities imported from other countries
economic union -- builds upon the elimination of the internal tariff barriers, the establishment of common external barriers, and the free flow of factors. It seeks to coordinate harmonize economic and social policy within the union to facilitate the free flow of capital, labor, and goods and services from country to country

A major challenge for marketing-oriented companies as they respond to the rapidly changing marketplace is to engage continuously in market-oriented strategic planning. They must learn how to develop and maintain a viable fit among their objectives, resources, skills, and opportunities.

Corporate strategic planning involves four planning activities.

1. Develop a clear sense of the company's mission in terms of its industry scope, products and applications scope, competence scope, market segment scope, vertical scope, and geographical scope.

2. Identify the company's strategic business units (SBUs).

3. Allocate resources to the various SBUs based on their market attractiveness and business strength.

4. Expanding present businesses and develop new products to fill the strategic planning gap.

Marketing plans focus on a product/market and consist of the detailed marketing strategies and programs for achieving the product's objectives in a target market.


The marketing planning process consists of five steps:

1. analyzing market opportunities;
2. researching and selecting target markets;
3. designing market strategies;
4. planning marketing programs;
5. and organizing, implementing, and controlling the marketing effort.

The resulting document consists of an:

• executive summary,
• current market situation,
• opportunity and issue analysis,
• objectives,
• marketing strategy,
• action programs,
• projected profit and loss statement,
• and controls.

Validity refers to how well the GMAT exam does what it is intended to do—predict students’ academic performance in the core courses of a graduate management or business program.

The GMAT is the first and only test designed to predict student performance in business school, and it does so more reliably than any other known measure, including the Graduate Record Examination (GRE) and other standardized assessments.

Validity of GMAT

For 50 years, GMAC has maintained the reputation of the GMAT exam as the best assessment for business school admissions by continually studying the performance of test scores as a predictor of academic performance to ensure the test’s validity.

• For the GMAT exam, validity is measured as the relationship between scores on the test and the outcome it is intended to predict—first-year or midprogram grades in a graduate management program.
• The GMAT exam is the best individual predictor of graduate management grades, better even then undergraduate GPA, but the best prediction results from combining GMAT scores with undergraduate grades. On a scale ranging from 0.00 to 1.00, the validity of the GMAT as a predictor of midprogram grades is 0.53.
• A validity range of 0.30 to 0.40 is generally considered good for standardized admissions tests, making the GMAT an outstanding predictor.
• The validity of the GMAT exam averaged over hundreds of validity studies is 0.48.
• Although either GMAT Verbal or GMAT Quantitative scores may be more effective predictors for a single program, on average, scores from both these sections of the GMAT predict equally well.

Validity Studies

Information from validity studies has been collected as long as the test has been in use.

• The first set of validity studies was reported in 1957, using scores from 10 schools that admitted students on the basis of the first administrations of the GMAT exam in 1954.
• Researchers at various schools who have conducted validity studies for different graduate management programs have found results similar to those of studies conducted through the VSS at GMAC. A meta-analyses of more than 400 publicly available studies of the validity of the GMAT estimated the validity of GMAT Total scores alone to be 0.47 (Kuncel, Crede, and Thomas, 2004).

Validity for Groups

Validity studies show that the test is not biased for any population.
• Consistently, different studies examining gender have shown absolutely no difference in the validity of the GMAT exam for males and females.
• Multiple studies examining race have also shown that GMAT scores predict grades equally well for the U.S. subgroups.
• Other studies have shown no differences in validity across groups based on age, native language, undergraduate major, and citizenship regions.

Other Predictors

Few predictors are able to add much to what is explained by GMAT scores and undergraduate grades.

• Although work experience is frequently required for admission to a graduate management program, individual studies rarely see much improvement to validity when the amount of work experience is used as a predictor.
• Amount of work experience, time since undergraduate graduation, and age have sometimes been found to be negatively related to graduate school performance. Students who are no longer used to studying frequently or intensely may receive lower grades, which appears as a negative relationship between age (or another time-based variable) and academic performance.
• Some admission factors, such as Test of English as a Foreign Language (TOEFL) scores and interview ratings, may not be available for all applicants, making it difficult to accurately assess the impact on prediction.

Other Outcomes

Although the GMAT exam was designed to predict performance in the core courses of a graduate management program, studies using other outcomes have also shown some predictive validity.

• The GMAT exam has been shown to have predictive validity for measuring second-year grade point average (GPA) and graduating GPA, as well as first-year GPA.
• Some studies have shown that GMAT scores have some effectiveness in predicting job success as measured by salary.
• The GMAT exam has been specifically designed to predict early graduate management academic performance. Use of the GMAT exam to predict any other outcome should be thoroughly studied in a specific situation before any decisions based on the scores are considered.

The use of the computer-adaptive testing technology makes it difficult to predict your actual GMT score based on your performance on a paper-and-pencil practice test. We have tried, however, to develop a scoring table that provides a general ideal of your performance at this point in your preparation. To predict your score on the practice tests you take during preparation, count the correct answers in each section and find that number in the left column of the charts below. The corresponding number in the right column represents an approximation of your GMT test score.

How Schools Evaluate Your Application

There are all kinds of stories and myths about what the "trick" is to getting into business school. The reality is that there is no trick. Admissions professionals work to fill a limited number of spaces by making the best possible selections from among a large pool of applicants. It comes down to a pretty simple equation of supply (spaces in the class) and demand (applicants). It is therefore in your best interest to articulate your goals as they relate to a particular program’s strengths, limitations, content, and culture.

Meeting a school's minimum qualifications doesn't guarantee that you’ll be admitted. Schools will use such factors as academic record, recommendations, and work experience to judge your potential for success in a program relative to the overall applicant pool:

• Schools will use your GMAT scores to predict how well you will do academically in their core curriculum.
• They will use to your work experience, extracurricular activity, and letters of recommendation to help them gauge your professional promise.
• Interviews and essays will help schools to determine why you want to earn a degree and how you will use it in the future. These parts of the application will also help schools learn about your communication skills.

Reviews Are Subjective and Holistic

Admissions officers are humans, not machines, which means they have the ability to take in all the information applicants supply and make critical judgments about what is most important. They can decide the relative importance of each part of an application, depending on each candidate's total experience. For example, if you have limited work experience, your academic credentials may assume greater importance. Conversely, if you have been out of school for a long time, your undergraduate record may be less important than your current job responsibilities. So the worst thing you can do is write your application to some imagined formula that you think will guarantee you admission. You have to be your own unique self in your application. There is a program out there that is right for you, and the best way to achieve the right fit between you and a school is to represent yourself openly and honestly in your application.

You'll receive four GMAT scores:

• Quantitative scaled sub score, ranging from 0 to 60 (effectively 51 is the max score)
• Verbal scaled sub score, ranging from 0 to 60 (effectively 48 is the max score)
• Overall scaled score, ranging from 200 to 800. This is an overall score that is the combination of your 0 to 60 Math and Verbal scores . The 200 to 800 cumulative score is what business schools primarily use.
• Analytical Writing Assessment score, ranging from 0 to 6. This is a separate score that is less important than the 200 to 800 cumulative score.
  

The test is graded on a preset curve so that your scaled score will correspond to a certain percentile. An overall score of 630, for example, corresponds approximately to the 90th percentile, meaning that 90 percent of test takers scored at or below this level.


Rising Average GMAT Scores

Those six-figure starting salaries have had an impact on MBA admissions... everyone wants one. In the early nineties the average GMAT score of accepted students at New York University (Stern) Business School was 610. By 2005 the average GMAT test score had jumped 89 points to 699. Getting a high score on the GMAT is crucial because the business schools are getting flooded with applicants. Expect around a 690 average score for the top-ten business schools in 2005-2006.

That 690 figure is deceptive because that average includes many students who were accepted for favorable traits (diversity, unusual accomplishment or success, etc.) that allow them to gain acceptance with a lower score. If you have none of these types of traits, then you probably need to break 720 (that's over the 99th percentile) to have a good chance at a top-ten school.

According to GMAC, the average salaries for 2005 MBA graduates exceeded $100,000. The market has fully recovered from the 2001 dotcom collapse and 9/11. The appeal of high salaries will only serve to increase competitiveness and the importance of high GMAT scores.

Score Chart for Practice Exercises

The corresponding number in the right column represents an approximation of your GMT test score. Verbal Subscore (C = Correct, S = Score) C S C S C S C S C S C S 41 60 34 48 27 34 20 20 13 6 6 0 40 60 33 46 26 32 19 18 12 4 5 0 39 58 32 44 25 30 18 16 11 2 4 0 38 56 31 42 24 28 17 14 10 0 3 0 37 54 30 40 23 26 16 12 9 0 2 0 36 52 29 38 22 24 15 10 8 0 1 0 35 50 28 36 21 22 14 8 7 0 0 0 Math Subscore (C = Correct, S = Score) C S C S C S C S C S 37 60 29 46 21 30 13 14 5 0 36 60 28 44 20 28 12 12 4 0 35 58 27 42 19 26 11 10 3 0 34 56 26 40 18 24 10 8 2 0 33 54 25 38 17 22 9 6 1 0 32 52 24 36 16 20 8 4 0 0 31 50 23 34 15 18 7 2 30 48 22 32 14 16 6 0 GMAT Subscore (C = Correct, S = Score) C S C S C S C S C S 78 800 62 660 46 500 30 340 14 200 77 800 61 650 45 490 29 330 13 200 76 800 60 640 44 480 28 320 12 200 75 790 59 630 43 470 27 310 11 200 74 780 58 620 42 460 26 300 10 200 73 770 57 610 41 450 25 290 9 200 72 760 56 600 40 440 24 280 8 200 71 750 55 590 39 430 23 270 7 200 70 740 54 580 38 420 22 260 6 200 69 730 53 570 37 410 21 250 5 200 68 720 52 560 36 400 20 240 4 200 67 710 51 550 35 390 19 230 3 200 66 700 50 540 34 380 18 220 2 200 65 690 49 530 33 370 17 200 1 200 64 680 48 520 32 360 16 200 0 200 63 670 47 510 31 350 15 200