Market Potential Indicator

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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
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• Lowered tariffs and abolished market impediments. By 2005, average tariff rates on key U.S. agricultural exports dropped from 31% to 14% and on industrial products from 25% to 9%.
• They pursued policies to foster the rapid development of foreign-invested factories, which assemble imported components into consumer goods for export, and liberalizing trading rights. China is now one of the most important markets for U.S. exports: in 2006, U.S. exports to China totalled $55.2 billion. Export growth has led to rapid economic growth. To increase exports,
• They eliminated certain trade-related investment measures and opened up specified sectors that had previously been closed to foreign

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