Question

Use the following data to answer the next question:
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## GNI at PPP per capita (2014 US$): Indonesia: 9,260; Malaysia: 22,525; Philippines: 7,827; Pakistan: 4,851; Thailand: 13,397
## GNI at PPP (2014 US$ Billions): Indonesia: 2,315; Malaysia: 669; Pakistan: 881; Phillipines: 771; Thailand: 899
## GDP Growth % (World bank 2010-14): Indonesia: 5.8; Malaysia: 4.7; Pakistan 4.4; Philippines: 7.2; Thailand: 1.8
## HDI (2013): Indonesia: 0.684; Malaysia: 0.773; Pakistan 0.537; Phillipines: 0.660; Thailand: 0.722
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Your company needs to choose a country to enter based on market viability to its high priced, luxury products: the higher the capacity of the local market to consume such type of products, the better is the country as a target. According to the data provided, and assuming the listed variables is all the information you have, the chances of your company selecting ______ are MUCH HIGHER than it selecting _____:

- Pakistan; Philippines

- Thailand; Malaysia

- Thailand; Philippines

- Pakistan; Indonesia

Homework Answers

Answer #1

Since the company intends to enter a country that has a good market or prospects for high priced products, the most important parameter that needs to be judged is the purchasing power of individuals in the country.

Among the given parameters, the best metric that can judge the buying power of individuals is the GNI at PPP per capita. The Gross National Income is the total of gross domestic product and the income that is received from overseas. Therefore, it gives a good indication of the income level per capita and hence the purchasing power.

Considering this overview - You have, the chances of your company selecting Thailand are MUCH HIGHER than it selecting Philippines

The GNI at PPP per capita for Thailand is $13,397 and that for Philippines is $7,827. Therefore, among the given choices, the chances of selecting Thailand is much higher for the company.

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