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    Middle Class and MPI

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    1.Read the McKinsey Quarterly article "Capturing the world's emerging middle class" and answers the following questions:( attached is the article)

    Why do multinational firms need to think about the middle class now more than in the past?
    What should the multinational companies do to capture this emerging middle class?

    2.Visit the Market Potential Index for Emerging Markets page at GlobalEdge. Market Potential Indicator (MPI) is an index used to compare emerging markets along various dimensions. This index was developed as a result of an extensive study by MSU CIBER (Michigan State University Center for International Business Education and Research). In a cohesive and concise paper, answer the following questions:

    What are the indicators used in developing this index?
    Which of the indicators, in your opinion, would have a greater impact for a company that markets laptop computers?

    Using the MPI, which countries would be ideal for this company to enter? Why?
    (http://globaledge.msu.edu/mpi) ( at least 600 words)

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    Solution Preview

    Why do multinational firms need to think about the middle class now more than in the past?

    Multinational firms need to think about the middle class now more than in the past is very important. This is because most of these organizations if not all of them have decided to ship their work overseas, which has left the middle class within the United States with little to no work and high competition. A person could face months to years without work, and he or she would have to rely on limited governmental assistance due to getting laid off from those particular businesses. In addition, technology is the wave of the future, and anything made within the U.S. is very valuable to the world because of its high quality for the consumer. If anything is made outside of it, the goods and resources are not as strong, which could hurt someone's firm immensely. For a management to consider going back to work domestically, this can make all the difference in society because it at least gives hope to the middle class, and the individual ...

    Solution Summary

    This solution discussed the middle class and market potential index.