International Business

Name: Nguyen Phuong Anh (04/11/1993).

Class: E-BBA3B

Student number: CQ530155.

Exercise 2 (Chapter 2, Page 81).

As be known, the company has to concentrate on the indicators such as MPI rankings with the aim of investing and getting benefits in the best way. Therefore, identifying the proper market certainly will help the company have appropriate business plans and partly avoid the risks or losses in investing and operating. In my opinion, China is a potential market for laptop computers. Based on Market Potential Index (MPI) for Emerging Markets-2013, it can be seen that China is one of the countries having the highest score in some indicators and overall score as well. Clearly, market size and market growth rate of China are very high (100 scores), which expresses that China is a large market, where the growth is high and saturation is low. The number of buyers and sellers in China is especially important for companies that wish to launch a new productor service, since small markets are less likely to be able to support a high volume of goods. Large markets can bring in more competition. In addition, the market growth rate of China indicates that this country is a great place to have the best performance of investing and manufacturing a product in a particular market such as laptop computers. Besides, China has low market intensity, the score of this indicator is just 1. It is obvious that in China, the laptop computers company can run the business fluently because it does not have much pressure in the competition. The company can dominate this market. Moreover, the market consumption capacity of China is quite high, this country gets the score of 70. China is known as one of the countries having the biggest population in the world, which means the consumption capacity is proportional to the population. In other words, a large number of laptop computers will be consumed and developed more and more. According to the table of MPI-2013, China gets 39 in...