Market Potential Indicator

942 words 4 pages
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Market Potential Indicator

Purpose of Indicator
As the name states, it is a measure of the market potential of a country using several dimensions, ratings, indexes and percentages. Currently, emerging economies comprise more than half of the world's population, account for a large share of world output and have very high growth rates, which mean an enormous market potential. With global marketing becoming more important, companies and marketers are attempting to determine which international markets they would like to penetrate and the appropriate marketing strategy.
Using the market potential indicator countries are distinguished by the recent progress they have made in economic liberalization using eight dimensions. Each dimension is …show more content…

• Since 1998, the Chinese government has issued a total of 500 billion Yuan in special, long-term treasury bonds to boost the development of primary industries and infrastructure projects, so as to further stimulate domestic demand. These funds were used to add16,000 kilometres of roads dedicated to developing central and western China. In 2002, the Chinese government launched a campaign to improve transportation and promote economic development in the west and resulted in 26,098 kilometres of roads.
• Technical progress of enterprises and upgrading of industries. The money raised by T-bond issue supported more than 300 projects that apply high-tech research results to production and 880 key technological upgrading projects were incorporated.
• They became the full member of World Trade organization (WTO) in December 2001 and agreed to allow wholly foreign-owned businesses to engage in retail or wholesale activities. By December 11, 2004 China fully opened its retail market to foreign competitors in accordance with its WTO commitments. Restrictions on locations, proportion of stake, and number of foreign funded outlets were lifted.
• Favourable economic growth has brought up the confidence of foreign investors to China. A total of 7,700 foreign-funded projects were approved in the first five months in 2006, bringing in US$ 18.2 billion.
• Developed all forms of education at all levels

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