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So, in this assignment, we identify and organize information on different factors that will allow us to compare the attractiveness of two potentially new markets:
So, in this assignment, we identify and organize information on different factors that will allow us to compare the attractiveness of two potentially new markets: Poland and Chile. First, collect, organize, and tabulate information regarding each country within the following five broad categories:
- Geography: Population (size of market, http://www.prb.org), and neighbouring countries (as potential markets to export to), trade agreements (European Union, etc.)
- Economic Indicators: Income based on GDP and GDP per capita., interest rate (cost of borrowing), inflation rate, unemployment rate, economic growth rate, exchange rate. FDI Confidence Index (https://www.atkearney.com/gbpc/foreign-direct-investment-confidence-index). Development indicator based on the Human Development Index (see Table 1 in the Statistical Annex at http://report.hdr.undp.org) - Income per capita at Purchasing Power Parity, life expectancy, and mean years of schooling.
- Political Indicators: Political stability indicators including Index for Political Rights, Index of Civil Liberties, Freedom Rating, and Freedom Status from the Freedom in the World website, https://freedomhouse.org/report-types/freedom-world. Corruption Perception Index from Transparency International website, https://freedomhouse.org/report-types/freedom-world. Form of government, and attitude of government towards international business.
- Legal Framework: Type of legal system (civil law, common law, theocratic law, etc.), enforcement of property rights, intellectual property rights, product safety laws, product liability laws, contract law.
- Cultural Issues: factors that will lead to higher demands for particular vehicles such as average family size, propensity of families to commute, etc.
- Based on this information, assess the viability and attractiveness of the two proposed markets: Poland or Chile or both.
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