The macroeconomic indicators have helped the exporters to identify their positions. The Market Potential Index as a study by the Michigan States University has used various dimensions to compare the market potential in the United States and the emerging world markets for the exporters. Recently, the international trading activity has increased, and the research has enhanced maximum profitability and high market potentials (Hill & Hult, 2017). The market potential index forms part of the vital tool for the emerging markets and business concentrating with the international trade. As global marketing becomes more crucial in the recent years, the internalization trend also increases. Based on the various choices, marketers face different constraints when determining market internalization and appropriate strategies used in marketing.
According to the MSU-IBC Study, the indexing tool has helped many companies to compare their emerging market forces between each other and thus depends on infinite dimensions. The eight dimensions have become an integral part of market potential to many exporters in the United States on a ranging scale between 1 to 100. The dimensions can be measured using various indicators and thus weighed to determine their effects to the overall Market Potential Index.
Delegate your assignment to our experts and they will do the rest.
Market size for a dimension and a measure of market potential have an impact on the wireless marketing businesses (Mayer, Melitz & Ottaviano, 2014). The huge market will accommodate the company's products thus enhancing competitive advantage and market exploration. In urban areas, high population and the electricity consumptions impact the company producing wireless products negatively and positively. The smaller-sized markets will not accommodate all the goods thus challenging the business progress. Moreover, market consumption as part of Market Potential Index focuses on the percentage share of the individuals in the middle class and their rate of consumption. This dimension is ideal for companies dealing with clothing items (Soderbery, 2014).
References
Hill, C. W. L., & Hult, G. T. M. (2017). Global business today . New York, NY: McGraw-Hill Education.
Mayer, T., Melitz, M. J., & Ottaviano, G. I. (2014). Market size, competition, and the product mix of exporters. The American Economic Review, 104(2), 495-536.
Soderbery, A. (2014). Market size, structure, and access: Trade with capacity constraints. European Economic Review , 70 , 276-298.
