1. Individual Problems 17-1

Philippines

You're the manager of global opportunities for a U.S. manufacturer that is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, the Philippines, and Singapore as described in the following table:

	Success Level
Big	Mediocre	Failure
Malaysia
Probability	0.1	0.7	0.2
Units	1,200,000	384,000	0
Philippines
Probability	0.3	0.4	0.3
Units	1,400,000	700,000	0
Singapore
Probability	0.5	0.3	0.2
Units	700,000	420,000	0

The product sells for $20, and each unit has a constant marginal cost of $16. Assume that the (fixed) cost of entering the market (regardless of which market you select) is $500,000.

In the following table, enter the expected number of units sold, and the expected profit, from entering each market.

Market	Expected Number of Units Sold	Expected Profit
Malaysia
Philippines
Singapore

If you were to enter one of the previously described markets, which one would you enter in order to earn the highest expectedprofit?

Malaysia

Singapore

Philippines