Market Potential Index for Emerging Markets - 2010

February 14, 2011

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Global marketing is becoming more and more important along the years with the increasing trend in internationalization. Having too many choices,
marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The focus of this study is ranking the market potential of countries identified as "Emerging Markets" by The Economist magazine. These
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; all indicators of enormous market potential.
 This indexing study is conducted by MSU-CIBER to help companies compare the Emerging Markets with each other on several dimensions. Eight
dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various
indicators, and are weighted in determining their contribution to the Overall Market Potential Index.
Notes:
1. The most recent version of the Market Potential Index can always be found on globalEDGE
at:http://globalEDGE.msu.edu/resourceDesk/mpi/
2. The index for previous years can be reached through the Market Potential Index (MPI) Archive table on the right column.
3. To sort by any dimension, click on the name of the dimension, its "Rank", or its "Index" heading.

MPI for 2010

Market Market
Market Growth Market Consumption Commercial Economic Market Country Overall
Countries Size Rate Intensity Capacity Infrastructure Freedom Receptivity Risk Index
  Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index Rank Index
Hong Kong 24 1 6 45 1 100 17 48 1 100 2 93 2 81 1 100 1 100
China 1 100 1 100 26 1 13 60 21 33 25 2 23 2 8 64 2 92
Singapore 26 1 17 25 2 81 14 57 3 89 8 77 1 100 2 98 3 90
Korea, Sout
h 7 10 16 31 6 64 1 100 4 85 4 83 9 15 4 73 4 71
Czech Rep. 22 1 24 13 13 51 2 94 2 91 3 88 10 13 3 78 5 56
Poland 15 4 13 33 10 60 5 78 6 79 7 77 14 5 9 63 6 51
Israel 23 1 20 22 4 70 7 74 7 72 6 79 5 19 7 66 7 51
Hungary 25 1 25 1 3 71 3 90 5 82 5 82 6 17 10 60 8 49
India 2 38 2 78 24 26 11 60 25 9 18 47 20 3 13 50 9 48
Turkey 8 6 10 36 5 67 9 65 15 48 12 58 13 10 17 40 10 36
Brazil 4 21 11 36 17 47 23 20 13 52 14 55 25 1 12 50 11 28
Indonesia 5 11 4 53 19 41 10 63 20 33 15 50 24 1 22 33 12 27
Mexico 6 10 22 18 8 61 21 27 16 46 9 70 7 17 11 51 13 27
Malaysia 19 3 21 19 23 29 8 73 9 59 16 49 4 28 20 37 14 26
Chile 20 2 23 13 14 50 22 24 14 50 1 100 12 11 6 71 15 26
Egypt 13 4 7 45 11 58 6 75 19 39 22 25 17 4 21 34 16 25
Saudi Arabia 14 4 5 49 25 17 - - 11 54 23 22 11 12 5 71 17 23
Thailand 16 4 14 33 22 36 15 52 12 54 19 43 8 16 19 38 18 21
Argentina 12 4 8 43 12 52 19 45 10 57 17 48 19 3 24 14 19 19
Peru 21 2 9 41 15 50 20 36 22 33 10 69 18 3 16 41 20 17
Russia 3 24 26 1 20 40 16 49 8 65 24 11 22 2 15 44 21 17
Pakistan 10 6 3 58 9 61 4 79 26 1 21 29 26 1 26 1 22 14
Philippines 11 5 18 24 7 62 18 48 23 31 20 41 15 5 23 26 23 12
South Africa 9 6 19 24 18 46 25 1 24 12 11 67 3 29 14 48 24 8
Colombia 18 3 15 32 16 48 24 9 17 45 13 55 21 2 18 39 25 7
Venezuela 17 3 12 34 21 40 12 60 18 43 26 1 16 4 25 6 26 1

Year to Year Comparison of MPI

Countries 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank
Hong Kong 1 3 1 2 1 1 1 1 3 2 2 4 2
China 2 2 2 1 3 4 5 5 5 6 5 2 3
Singapore 3 1 3 3 2 2 2 2 1 1 1 1 1
Korea, South 4 4 5 6 4 3 3 3 2 10 3 9 5
Czech Rep. 5 5 6 7 7 7 7 7 7 7 7 7 19
Poland 6 7 10 10 8 9 8 8 9 9 12 6 13
Israel 7 6 9 5 5 5 4 4 8 4 4 5 4
Hungary 8 8 7 8 6 6 6 6 10 11 11 16 15
India 9 11 11 9 9 8 9 10 11 8 10 10 10
Turkey 10 12 13 11 15 15 14 14 20 17 18 19 18
Brazil 11 16 23 23 18 20 17 16 18 21 20 22 20
Indonesia 12 22 19 21 19 17 16 22 21 23 16 17 21
Mexico 13 14 8 14 10 11 10 11 14 15 22 14 9
Malaysia 14 10 14 12 13 14 13 17 15 16 8 13 7
Chile 15 13 15 16 14 10 11 9 16 13 14 11 14
Egypt 16 17 21 19 16 16 19 21
Saudi Arabia 17 15 20 18
Thailand 18 19 16 15 12 13 12 12 12 18 13 15 8
Argentina 19 18 17 17 21 19 23 15 13 14 17 3 12
Peru 20 21 25 25 17 21 18 18
Russia 21 9 12 13 11 12 15 13 19 19 19 21 23
Pakistan 22 20 24 20
Philippines 23 23 18 22 20 18 20 19 17 12 15 18 22
South Africa 24 25 22 24 22 22 21 20 22 22 21 23 17
Colombia 25 26 26 27 24 23 24 24
Venezuela 26 24 27 26 23 24 22 23 23 20 23 20 16

Dimensions and Measures of Market Potential for 2010

Dimension Weight Measures Used
Market Size 10/50 Urban population (million) -20091
Electricity consumption (billion kwh) - 20072
Market Growth Rate 6/50 Average annual growth rate of primary energy use (%) - between years 2003-20072
Real GDP growth rate (%) - 20091
Market Intensity 7/50 GNI per capita estimates using PPP (US Dollars) - 20091
Private consumption as a percentage of GDP (%) - 20081
Market Consumption Capacity 5/50 Percentage share of middle-class in consumption/income (2009)1
Commercial Infrastructure 7/50 Main Telephone lines (per 100 habitants) - 20093
Cellular mobile subscribers (per 100 habitants) - 20093
Number of PC's (per 1000 habitants) - 20094
Paved road density (km per million people) - 20094
Internet users (per 100 habitants) - 20093
Population per retail outlet - 20094
Percentage of Households with TV - 20094
Economic Freedom 5/50 Economic Freedom Index - 20105
Political Freedom Index - 20106
Market Receptivity 6/50 Per capita imports from US (US Dollars) - 20097
Trade as a percentage of GDP (%) - 20091
Country Risk 4/50 Country risk rating - 20108
Data used are those available for most recent year.
1
 Source: World Bank, World Development Indicators - 2009
2
 Source: U.S. Energy Information Administration, International Energy Annual - 2007 (published Dec 2008)
3
 Source: International Telecommunication Union, ICT Indicators - 2009
4
 Source: Euromonitor International, Global Market Information Database - accessed August 2009
5
 Source: Heritage Foundation, The Index of Economic Freedom - 2010
6
 Source: Freedom House, Survey of Freedom in the World - 2010
7
 Source: U.S. Census Bureau Foreign Trade Division, Country Trade Data - 2009
8
 Source: Euromoney, Country Risk Survey - March 2010