Final answer:
The market attractiveness of Luxembourg and China varies based on the product or service offered. Luxembourg's high per capita income suggests a wealthy consumer base suitable for luxury markets, while China's massive population provides a vast consumer base despite its lower per capita income.
Step-by-step explanation:
When comparing the attractiveness of markets between Luxembourg and China based on per capita income, one must consider more than just the income values themselves. Luxembourg, with its per capita income of $77,460 PPP (purchasing power parity), indicates a high average income among its inhabitants, which could signify a population with considerable spending power, making it an attractive market for luxury goods and services.
Luxembourg's robust economy is supported by its leading role as an international financial center and insurance industries. On the other hand, China's per capita income of $16,760 PPP suggests a larger variance in wealth distribution, yet it stands as an alluring market due to its massive population and rapid economic growth, providing vast opportunities for businesses in various sectors.
While GDP per capita is an important economic indicator showing a country's productive capability per person, it is not the sole measure of economic vibrancy and potential market attractiveness. Considering China's substantial population near 1,355 million, the cumulative spending power is tremendous despite the lower GDP per capita compared to that of the United States or Luxembourg.
In summary, a market's attractiveness is multifaceted, depending on the product or service offered, the target demographic, and the market's overall growth potential. Both Luxembourg and China offer unique opportunities: Luxembourg for high-value, niche markets, and China for large-scale, diverse consumer bases.