In a short essay, identify market potential criteria for global market opportunity assessments as well as indicators used in market potential research

Discuss their use and provide an example of a source for such data as well the problems that arise in using it.
What will be an ideal response?

Market potential criteria includes:
— Market size and growth rate
— Relevant trends in the industry
— Degree of competitive intensity
— Tariff and nontariff trade barriers
— Relevant standards and regulations
— Availability and sophistication of local distribution intermediaries
— Specific customer requirements and preferences
— Industry-specific market potential indicators
— Industry-specific market entry barriers

A comprehensive set of market-potential indicators includes, too, population, income level, and political stability, and weights and are assigned to establish their relative importance. The more important an indicator, the greater its weight.

Indices such as the Market Potential Index reveal interesting patterns. For example, Russia has a large market size but scores poorly in economic freedom. It also ranks low in market intensity and market receptivity. This implies there are always trade-offs in selecting target countries. No single country is attractive on all dimensions. Along with desirable features, the researcher also must contend with less desirable ones. For example, both Singapore and Hong Kong are favorable in terms of commercial infrastructures, but they are city-states with small populations.