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Global Business Today 10th Edition Chapter 1 Pdf

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Global Business Today

(10th Edition)

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Chapter 1, Problem 2RT

O

Problem

You are working for a company that is considering in vesting  in a fo reign country. Investing in countries with different traditions is an important ele ment o f your c ompa ny's long-term strategic goals. As such, management has requested a report regarding the attractiveness of alternative countries based on the potential return of FDI. Accordingly, the ranking of the top 25 countries in terms of FDI attractiveness is a crucial ingredient for your report. A colleague mentioned a potentially useful tool called the Foreign Direct Investment (FDI) Confidence Index. The FDI Confidence Index is a regular survey of global executives conducted by A.T. Kearney. Find this index and provide additional information regarding how the index is constructed.

Step by step solution

Before entering into business investing in foreign country, it is important and adorable to consider the rank and  poten tial  of t h at particular country in FDI ratings. The FDI (Foreign Direct Confidence Index) is a regular survey of global executives conducted by ATK. The FDI confidence Index provides insight for global investment. It was established in 1998 that provides major contributions to the foreign investing countries by providing FDI potential and inflows of various nations. Comment The survey provides an accurate index table for FDI confidence. The FDI Confidence Index table is as shown below:

The 2015 FDI confidence index: CountryRank

US1 Chi-a2 UK3 Can-da4 Ger-ny5 Bra-il6

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Jap-n7 Fr-ce8 Me-co9 Aus-lia10 Ind-a11 It-ly12 Neth-nds13 Swit- land14 Sing-re15 South-kore16 Spa-n17 Swe-n18 Bel-um19 Den-ark20 Aus-ria21 Tur-ey22 Pol-nd23 No-way24 Fin-and25 The FDI index is able to prove its trustworthiness ever since its establishment by providing reliable FDI report. Comment The information and details of FDI construction is given below in details: • The FDI confidence index is constructed by primary data of proprietary survey. • The index is made on weighted average on the basis of the number of responses of likelihood direct investment over next three years. • These index values are calculated without the responses from nation's corporate investors.

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• FDI also provides flow figures. These statistics are extracted from UNCTAD (United Nations Conference on trade and Development). Comment

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Global Business Today 10th Edition Chapter 1 Pdf

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