Theoretical Framework Research Proposal

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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, it remains a fact that the crisis has 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 some 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, the countries need to be aware that their economic practices need to be sound. Kenya's import and export market of 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 economy, as well as by the general health of the global economy.

The theoretical framework in this case will therefore have to include a component that relates to the global economy and how developing and developed countries influence each other in terms of their 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.


In the 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 suggests specific structural changes in how business, the economy, entrepreneurship and other economic concepts are managed in both the developing and developed world. Specifically, this means that the development level of a country will need to be taken into account when examining and/or modifying its economic structure.

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

The author further points out the "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, for example, one might say that the country has moved quite a way towards 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 economic structure, but also that of the target country. The United States should therefore exercise responsibility in leading its business partner towards the structural economic change that will lead to its growth and development. Such growth and development will ultimately lead to a healthier economy for all countries on a global scale, hence benefiting everyone.

Another important concept Lin (2011, p. 195) mentions is effective resource allocation. The market at….....

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