MSU-CIBER Releases Latest Market Potential Index for Emerging Markets: Hong Kong, China, and Singapore in the Lead

Michigan State University's Center for International Business Education and Research (MSU-CIBER) in the Eli Broad College of Business released its annual Market Potential Index (MPI). Now in its 11th year, the MPI focuses on those countries that are widely seen as emerging markets. These markets, which are in a transition phase from a developing country status to a developed country status, are the home to more than half of the world's population, account for a growing share of the world output and typically have high growth rates. The latest ranking is available on globalEDGE at http://globalEDGE.msu.edu/resourceDesk/mpi.asp.

The 2008 update of the MPI features Hong Kong, China, and Singapore at the top of the emerging markets ranking. Hong Kong reclaimed the top spot from China this year, after falling to second a year ago. Previously, Hong Kong held the top spot from 2002 to 2005. Singapore remains the third most attractive market, and Taiwan, which made its first appearance on the list one year ago, retained its ranking as the fourth most attractive market. South Korea rounds out the all-Asian top five.

South American countries again occupy the bottom three spots, as Colombia, Peru, and Venezuela round out the list at rankings 25, 26, and 27. Mexico was the bright spot for Latin America this year, rising six spots to number 8 from its 14th place last year; it is the most attractive of the emerging markets in Latin America.

The index, which has been published annually by MSU-CIBER since 1996, uses a number of market growth dimensions to determine the attractiveness of emerging markets. The factors include market size, market growth rate, market intensity, market consumption capacity, commercial infrastructure, economic freedom, market receptivity, and country risk. These dimensions includes a battery of indicators, each weighted based on their importance to establishing an overall market potential in emerging markets.

The on-line, interactive rankings allow users to rank emerging markets on the basis of any of the eight dimensions comprising the overall index. According to MSU-CIBER Director Dr. Tomas Hult, "the MPI presents firms with an easy-to-understand ranking of the emerging world markets that present the greatest opportunity in the next few years." MSU-CIBER also provides customized MPI analysis for firms based on their situation (e.g., products, industry). "A customized MPI is often preferred by firms with operations concentrated in one industry or in very specific products… For firms with clear strategic objectives, it is more beneficial to have a customized MPI that better reflects the individual firm's unique circumstances," said Dr. Tunga Kiyak, the MPI Project Coordinator for MSU-CIBER.