Question

The U.S. market is large, but many other countries have what advantage over the U.S.?

Answer 1

Other countries may have a faster growth rate than the US. 

Answer 2

The options available were:

A. More demographics

B. Faster growth, with less saturation

C. Wealthier consumers

D. Better technology and communication

I believe the best answer is B) Faster growth, with less saturation.

The US economy is the largest in the world, and very few foreign markets are larger: China, India and the European Union. The European Union is larger and has a lot of similarities with the American market: consolidated market with wealthy consumers.

While Chinese and Indian markets are much larger, their consumers are much poorer. But they do have an advantage, their markets are growing at a very rapid and steady rate.

Comparison can be tricky though. It is simple, if a Chinese spends $5,000 a year and next year he spends spends $5,500, his total expenses grew by 10%. While an American consumer spends $30,000 a year and if next year he spends $30,500, consumption has barely grown. A small market can grow a lot by only increasing expenses a little bit.