Question 1
Gucci, a maker of luxury fashion and leather goods, plans to expand its sales market. The firm needs to compare countries for the market potential of its products. Which of the following is the best indicator for Gucci to use?
◦ gross domestic product for each country
◦ the number of millionaires in each country
◦ population size of each country
◦ per capita income in each country
Question 2
When examining economic and demographic variables to compare countries' sales potential for your product, which the following should you NOT consider?
◦ Countries may depend heavily on the import of raw materials.
◦ Consumers in developing countries may leapfrog technologies by first purchasing the latest products.
◦ Consumers in some countries may more conveniently substitute certain products than consumers in some other countries.
◦ Trading blocs may enhance sales potential above what is indicated in individual country figures.
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