Visit the Market Potential Index for Emerging Markets page a

Visit the Market Potential Index for Emerging Markets page at GlobalEdge. Market Potential Indicator (MPI) is an index used to compare emerging markets along various dimensions. This index was developed as a result of an extensive study by MSU CIBER (Michigan State University Center for International Business Education and Research). In a cohesive and concise paper, answer the following questions: What are the indicators used in developing this index? Which of the indicators, in your opinion, would have a greater impact for a company that markets laptop computers? Using the MPI, which countries would be ideal for this company to enter? Why?

Solution

What are the indicators used in developing this index?

Market Size, Market Inensity, Market Growth Rate, Market Consumption capacity, Commercial Infrastructure, Market Receptivity, Economic Freedom, and Country Risk.

Which of the indicators, in your opinion, would have a greater impact for a company that markets laptop computers?

Since the company markets laptops the indicators that would have a greater impact will be Market size, market growth rate, market consumption capacity, commercial infrastructure.

Using the MPI, which countries would be ideal for this company to enter? Why?

China, Japan and India

Because of the market size, growth rate and the consumption capacity. the bigger market size will help the comapny attract more customers for its business. the market growth rate will be catalyst in the comany\'s customer base, as the company markets laptops, and as the market will grow the need of the product and hence, the need for the comapny to market the product will increase. Also, higher consumption capacity indicates higher consumer expenditure, which will lead to higher laptop buying capacity of the consumers of the country. Hence, it makes ita good market for a comany that markets laptops.