With our product being be most successful in the a highly populated country, the following are the top ten most populated countries and their growth rates. China is the largest country with a population of 1.3 billion and an annual growth rate of 2.5%. Indian is second with a population of 1.087 billion and an annual growth rate of 1.7%. The United States in the third most populous country with a population of 294 million and an annual growth rate of 0.6%. Indonesia is the fourth most populous country with a population of 218 million and an annual growth rate of 1.6%. Brazil is the fifth most populous country with a population of 179 million and an annual growth rate of 1.3%. Pakistan is the sixth most populous country with an annual growth rate of 159 million and an annual growth rate of 2.4%. Russia is the seventh most populous country with a population of 144 million and an annual growth rate of -0.6%. Bangladesh is the eighth most populous country with a population of 141 million and an annual growth rate of 2.1%. Nigeria is the ninth most populous country with a population of 137 million and an annual growth rate of 2.9%. Japan is the tenth most populous country with a population of 128 million and a annual growth rate of 0.1%. (2004 World Population Data Sheet, 2004, p. 2-12)
China, as of 2002, became the largest recipient of foreign direct investment at $53 billion. While this is by far the largest amount, it only represents a per capita foreign direct investment of $30 per person. The compares very poorly to other developing nations such as Brazil with a per capita foreign direct investment of approximates $195 per person. This represents a significant opportunity for our company to leverage the discrepancy and harness a under utilized market. (Reforms Could Boost China’s Ability to Attract Foreign Investment, March 7, 2003, para. 1-2)
Furthermore, China has the largest foreign direct investment confidence level of all nations, and scores a 2.03 (FDI Confidence Index, 2004, p. 3). This makes China a much more desirable investment opportunity due to the very high confidence compared with other countries. Taking this very high confidence level in along with the untapped per capita foreign direct investment makes China an almost certain win with our product.
In comparison to India, the second most populous nation and a foreign direct investment confidence score of 1.4, China has a number of advantages (FDI Confidence Index, 2004, p. 3). The consensus was that China has a much more sophisticated consumer. China also possesses a strong competitor presence within their locale. The tax regime and political stability are also significantly superior to India. The infrastructure and economic stability are also vastly superior. Ultimately, their market size is the largest plus; and makes this the ideal market for our product. Also a consideration is that China's foreign direct investment confidence level has remained stable while India's score is dropping. (FDI Confidence Index, 2004, p. 4)
In conclusion China provides the best opportunity for our product with foreign direct investment. Even more so a long term forecast has put China at the number two in world population (2004 World Population Data Sheet, 2004, p. 2). Their size alone, at 1.3 billion people and growing to 1.4 billion by 2050, also makes them an ideal country to invest within (2004 World Population Data Sheet, 2004, p. 2). Their confidence level, especially those factors involving economic and political stability contribute substantially to safety and a good return on investment (FDI Confidence Index, 2004, p. 4). An additional benefit is their beneficial "tax regime" over their second largest country, India, which would provide substantial longer term benefits (FDI Confidence Index, 2004, p. 4). Finally, China, over India, favored extremely favorably in "market growth potential" which, with our product, will lead to longer and better returns on our investment (FDI Confidence Index, 2004, p. 4).
References
2004 World Population Data Sheet (2004). Retrieved on July 29, 2005, from http://www.prb.org/pdf04/04WorldDataSheet_Eng.pdf
FDI Confidence Index (2004). Retrieved on July 29, 2005, from http://www.atkearney.com/shared_res/pdf/FDICIOct_2004_S.pdf
Reforms Could Boost China’s Ability to Attract Foreign Investment (March 7, 2003). Retrieved on July 29, 2005, from http://www.oecd.org/document/8/0,2340,en_2649_201185_3240968_1_1_1_1,00.html