Market Attractiveness

            In today’s economy, businesses make major profits by taking their companies and entering foreign markets. There are many benefits to doing this, but there are also many risks also. With this in mind, there are a lot of things to consider when trying deciding which country’s market to enter into. Market Attractiveness depends on GDP per capita, unemployment rate, inflation, the countries economic system, if the country is more individualist or not, the infrastructure of the country, and the amount of government corruption in that country.

            In the charts below, the six countries that are being looked at are listed with its data under it. The rankings only consist of the six countries in mind, not the whole world.

 

 

Egypt

 

 

 

Venezuela

 

 

 

Rank 

 

 

 

Rank

GDP per capita

$4,200

6

 

GDP per capita

$5,800

4

Unemployment rate

10.90%

4

 

Unemployment rate

17.10%

6

Economic System

3.38

4

 

Economic System

4.09

6

Inflation

9.50%

5

 

Inflation

22.40%

6

Individualism Score

38

1

 

Individualism Score

12

6

Corruption

3.4

4

 

Corruption

2.3

6

Infrastructure

21

5

 

Infrastructure

23

4

 

Average Rank

4.14

 

 

Average Rank

5.43

 

 

 

 

 

 

 

 

Mexico

 

 

 

Philippines

 

 

 

Rank

 

 

 

Rank

GDP per capita

$9,600

2

 

GDP per capita

$5,000

5

Unemployment rate

3.20%

1

 

Unemployment rate

11.70%

5

Economic System

2.89

2

 

Economic System

3.25

3

Inflation

5.40%

2

 

Inflation

5.50%

3

Individualism Score

30

4

 

Individualism Score

32

3

Corruption

3.5

T2

 

Corruption

2.5

5

Infrastructure

37

3

 

Infrastructure

1

6

 

Average Rank

2.29

 

 

Average Rank

4.29

 

 

 

 

 

 

 

 

South Korea

 

 

 

Turkey

 

 

 

Rank

 

 

 

Rank

GDP per capita

$19,200

1

 

GDP per capita

$7,400

3

Unemployment rate

3.60%

3

 

Unemployment rate

9.30%

3

Economic System

2.64

1

 

Economic System

3.46

5

Inflation

3.60%

1

 

Inflation

9.30%

4

Individualism Score

18

5

 

Individualism Score

37

2

Corruption

5

1

 

Corruption

3.5

T2

Infrastructure

94

1

 

Infrastructure

45

2

 

Average Rank

1.86

 

 

Average Rank

3

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rankings

1.  South Korea

2.  Mexico

3.  Turkey

4.  Egypt

5.  Philippines

6.  Venezuela

 

            South Korea ranks number one among these six countries. It ranks highest on five out of seven categories. It has a high GDP per capita which means that the country has money to spend. Its economic system ranks highest on among the six countries, meaning that it has favorable regulations on business. The corruption score is also ranked number one along with the infrastructure. South Korea has one of the highest in the world, so the country is ready for business to grow.

            Mexico is second on this list. The economic system, unemployment rate, and inflation rate are very strong and in businesses favor. The things that Mexico is lacking are in the infrastructure and the amount of individualism in the country.

            Third on this list is Turkey. It is right in the middle of the pack in most categories. The economic system in this country might discourage businesses from entering its market because it is so poor. This means that the government regulations on business are not strong, and businesses may struggle due to this.

            The bottom three countries in this list are Egypt, Philippines, and Venezuela. These countries are not attractive to businesses. These countries rank low in all categories, so businesses would not want to enter their markets. One exception would be Egypt. The individualism score in Egypt ranks number one among the six. This means that Egypt has potential to be a good country for doing business in the future.

            These rankings are based only on the information in the chart. Other factors may influence the market attractiveness. These factors include the countries ability to protect property rights, how free the country is, and other government regulations. So, the rankings above may not be consistent with theoretical predictions due to these factors.