National Market Development Stages

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Stages of national market development

Market development refers to the effective integration of the local market to foreign markets. Countries are classified according to the development level also referred to and the Gross National Income (GNI) per capita (Infoplease, 2013). The national market development stages are; low income, lower-middle Income and Upper middle income and High Income countries.

Low income represents countries that represent limited markets for all products and have no threats on competitive markets. They are pre-industrial countries with an income of less than $766 per capita. Lower middle income (less developed countries) has a low market volume with a relatively stable rate of growth with an income of more than $766 per capita but less than$3, 036. They are the countries in the early stages of industrialization.

Upper middle incomes are countries are industrializing countries; they have a rapid market growth, but they cannot contemplate for mass markets (Vasudeva, 2006). Upper middle-income countries have a GNP per capita between $3,035 and $9,386.

Higher income countries are industrialized countries with a GNP per capita above $9,368.this involves countries that have reached a sustainable economic growth and were among first world countries.

Percentages of world income found in each stage

World Bank groups countries according to their world income percentage. Low-income countries, are at 40.9%; lower middle-income countries have a percentage of 35.5, and upper middle income at 8.2 %, while the high-income countries have 15.6% of world income. It shows that low income and lower middle income utilizes the highest percentage of world income, according to the World Bank statistics.

Importance of