Economic Frameworks for U.S.–Kenya Sportswear Advertising

Introduction: The Global Economic Crisis and Developing Countries

Stiglitz (2009, p. 282) points out that the global economic crisis began first in the developed countries. The fact that developing countries were not sufficiently "rich" to engage in unviable economic practices somewhat cushioned the impact of the crisis on them. Nevertheless, the crisis spread to global proportions as a result of both developing and developed countries interacting on a global business scale. Technology today has made it possible for all countries to participate in the economy, which means that a crisis in one country — and especially one as powerful and important as the United States — will inevitably affect the economies of other countries at some point, even if it takes time for this to occur.

What this means for the study is that countries such as the United States and Kenya need to be aware at all times of their own economic practices, as well as how they interact with each other. This has an undeniable effect upon the economy of both countries. Hence, when advertising sportswear within both Kenya and the United States, both countries need to ensure that their economic practices are sound. Kenya's import and export market for sportswear, for example, will be influenced by the ability of clients to afford the product. The same is true of the United States: the ability of its businesses to globalize their operations will be influenced by the health of its own economy as well as by the general health of the global economy.

The theoretical framework in this case must therefore include a component that relates to the global economy and how developing and developed countries influence each other in terms of income. This will then be specified to relate to the sportswear market and advertising in both countries. Examining the effect of the economic crisis on advertising practices in these countries should also provide valuable insight to inform the study.

Economic Development Levels and Structural Change

In light of this, Lin (2011, p. 194) suggests that a new economic framework is required when considering the economic health of countries across the world. The author proposes specific structural changes in how business, the economy, entrepreneurship, and other economic concepts are managed in both the developing and developed world. Specifically, the development level of a country must be taken into account when examining and/or modifying its economic structure.

According to Lin (2011, p. 194), the economic structure of factor endowments necessarily changes as a country continues along its path of economic and other forms of development. Economic structural development and change therefore also require a corresponding infrastructure to support them on both a tangible and intangible level.

Lin further points out that "economic development" tends to move along a continuum from "low-income agrarian" economies to a "high-income post-industrialized economy." In the case of Kenya, one might say that the country has moved considerably toward emerging from its agrarian economy, but that it is still a long way from the development level of the United States, which is a high-income post-industrialized economy. When interacting with each other, Kenyan businesspeople promoting their sportswear or purchasing products from the United States for promotion in their own country will therefore need to be mindful not only of their own economic structure, but also that of the target country. The United States should accordingly exercise responsibility in guiding its business partner toward the structural economic changes that will lead to growth and development. Such growth and development will ultimately lead to a healthier economy for all countries on a global scale, benefiting everyone.

Migration Systems Theory and Its Economic Implications

This interaction is echoed by De Haas (2007, pp. 32–33) and his description of migration systems theory. This theory suggests that migration, for whatever reason, influences and interacts specifically with all conditions of living — including the social, cultural, economic, and institutional conditions of populations who migrate and those influenced by migration. De Haas refers to this as the "developmental space" influenced by migration. In the United States, the country is most strongly affected by immigration, where immigrants enter the country to start businesses or become employees within national businesses. The various cultures and philosophies brought into the country in this way act as a strong influence on the development of both immigrant communities and the communities they join. In other words, the influence is mutual.

In Kenya, migration tends to occur nationally rather than internationally, with Kenyan citizens moving toward cities in order to find work and improve the general circumstances of their families' lives. This is not to say, however, that Kenya is unaffected by immigration as well.

From an economic perspective, this interaction and mutual influence must be taken into constant account when conducting business. In the specific context of this study, those selling sportswear in the United States and Kenya can improve their advertising practices by taking into account the influence of migration on the economy of a specific region within the country. Advertising practices can then be modified according to the findings of such investigations. This theory also provides a basis for acknowledging the mutual influence of interactions between the two countries and their respective businesspeople.

Conclusion: Key Considerations for the Theoretical Framework

There are a few facts that must be considered undeniable when creating a theoretical framework for this study. The United States and Kenya are at different levels of economic development. Both countries have been affected by the global economic crisis. Both countries can benefit from trading with each other. Advertising practices within the countries will necessarily conform to the culture and specific economic development level in each country. In this study, these considerations will shape the investigation and its conclusions.