In India, 60 Million Middle-Class Men and Women Earn More

question 21

Essay

In India, 60 million middle-class men and women earn more than $275 per month.The segment is growing rapidly and is expected to increase to 73 million by 2010.Young consumers are buying international brands and the economy is strong.India is also the world's fastest growing cell phone market.The industry is expanding at a rate of 50% annually, with 5 million new subscribers added every month.Still, barriers originating in the political and regulatory environments have shackled private-sector growth.Considering all of the above-mentioned aspects, is the market segment large enough for a company to utilize the opportunity and make a profit? Does it have enough potential for future growth to make it attractive for any company to pursue a long-term strategy?

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Definitions:

Net Method

An accounting practice where purchase discounts are recorded immediately by reducing the price of the goods bought, assuming the discount will be taken.

Journal Entries

The records of financial transactions in the accounting system, documented in chronological order.

Voucher

A document that serves as evidence for a transaction and authorizes the payment or receipt of money.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting rules.