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150P3.5.2 - Please don't just copy and paste something random from the internet. Run through all the bullet points, and guarantee yourself an upvote! While

150P3.5.2 - Please don't just copy and paste something random from the internet. Run through all the bullet points, and guarantee yourself an upvote!

While making a decision about investing abroad a company has to consider a wide range of factors comprising the investment climate of the recipient state. Estimation of the business climate is important since it provides investors with information on potential opportunities and benefits with conducting economic activities in a certain jurisdiction, but also barriers and threats.

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  1. Assume a U.S. company producing womens clothes has an intention to open a manufacturing center abroad. Identify a country that, in your opinion, would be the best choice for this purpose, and design an investment climate profile of this country.

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Exhibit 16.9

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Exhibit 16.10

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Please don't just copy and paste something random from the internet. Run through all the bullet points, and guarantee yourself an upvote!

Sovereign Rating: Moody's: B1, Outlook: Stable; S&P: BB-, Outlook: Stable Political Strengths Economic Strengths Political stability with Communist Party in government Transformation to market oriented economy since since end of the country's civil war in 1975 late 1980s Widespread support for the CPV (Vietnam Communist High GDP growth facilitated by foreign investment Party) reflects its success in raising living standards Well educated and cheap labor force and creating and maintaining security Sizable natural resources and advantageous location Membership in TPP trade agreement Political Weaknesses Economic Weaknesses Inconsistent and evolving regulations Large fiscal deficits and weak banking system Unreliable legal system and corruption Plethora of state-owned enterprises and less A lack of financial transparency, insufficient diversification protection for minority owners, and poor corporate Industry and credit policies favor state-owned governance enterprises Lack of infrastructure Political & Governance Indicators Economic Indicators World Bank Ranking-Ease of doing GDP ($US bn) business 68th/190 GDP per capita ($US) Freedom HousePolitical rights and Real GDP growth (15-year average, %) civil liberties Not Free Fiscal balance (% of GDP) Transparency International Ranking- Public debt % of GDP) Corruption Perception Index 117th/180 Foreign direct investment (% of GDP) OECD country risk rating 5 Current account % of GDP) (Scale: 0-7,0 is least risk, 7 is highest risk) External debt (% of GDP) Foreign reserves (% of GDP) 241 2,482 6.8 -4.7 57.8 7.3 2.2 49.7 26.3 Sovereign Rating: Moody's: Ba3, Outlook: Negative; S&P:B+, Outlook: Negative Political Strengths Economic Strengths Transition to democracy at the end of 1970s Key dimensions of economic performance on par with Significant liberalization and stabilization by a drive central and eastern European countries to join European Union Was able to weather the recent global economic crisis Rapid decline in poverty incidence Debt is highly sought after by foreign investors Healthy growth forecast Political Weaknesses Economic Weaknesses Instability fuelled by conflict between the army and Mounting macroeconomic imbalances and major the civilian government reliance on foreign financing Strained relations between religious conservatives Widening current account deficit, surging credit growth and secular modernists and building inflation pressures Proximity to war-torn Syria High business cycle and currency risk Lira is a volatile emerging market currency Political & Governance Indicators Economic Indicators World Bank RankingEase of doing GDP ($US bn) business 43rd/190 GDP per capita ($US) Freedom House-Political rights and civil Real GDP growth (15-year average, %) liberties Partly Free Fiscal balance % of GDP) Transparency International Ranking- Public debt (% of GDP) Corruption Perception Index 78th/180 Foreign direct investment (% of GDP) OECD country risk rating 5 Current account (% of GDP) (Scale: 07,0 is least risk, 7 is highest risk) External debt % of GDP) Foreign reserves (% of GDP) 769 9,445 2.6 -1.9 30.4 1.7 -5.7 56.7 12.0 Sovereign Rating: Moody's: B1, Outlook: Stable; S&P: BB-, Outlook: Stable Political Strengths Economic Strengths Political stability with Communist Party in government Transformation to market oriented economy since since end of the country's civil war in 1975 late 1980s Widespread support for the CPV (Vietnam Communist High GDP growth facilitated by foreign investment Party) reflects its success in raising living standards Well educated and cheap labor force and creating and maintaining security Sizable natural resources and advantageous location Membership in TPP trade agreement Political Weaknesses Economic Weaknesses Inconsistent and evolving regulations Large fiscal deficits and weak banking system Unreliable legal system and corruption Plethora of state-owned enterprises and less A lack of financial transparency, insufficient diversification protection for minority owners, and poor corporate Industry and credit policies favor state-owned governance enterprises Lack of infrastructure Political & Governance Indicators Economic Indicators World Bank Ranking-Ease of doing GDP ($US bn) business 68th/190 GDP per capita ($US) Freedom HousePolitical rights and Real GDP growth (15-year average, %) civil liberties Not Free Fiscal balance (% of GDP) Transparency International Ranking- Public debt % of GDP) Corruption Perception Index 117th/180 Foreign direct investment (% of GDP) OECD country risk rating 5 Current account % of GDP) (Scale: 0-7,0 is least risk, 7 is highest risk) External debt (% of GDP) Foreign reserves (% of GDP) 241 2,482 6.8 -4.7 57.8 7.3 2.2 49.7 26.3 Sovereign Rating: Moody's: Ba3, Outlook: Negative; S&P:B+, Outlook: Negative Political Strengths Economic Strengths Transition to democracy at the end of 1970s Key dimensions of economic performance on par with Significant liberalization and stabilization by a drive central and eastern European countries to join European Union Was able to weather the recent global economic crisis Rapid decline in poverty incidence Debt is highly sought after by foreign investors Healthy growth forecast Political Weaknesses Economic Weaknesses Instability fuelled by conflict between the army and Mounting macroeconomic imbalances and major the civilian government reliance on foreign financing Strained relations between religious conservatives Widening current account deficit, surging credit growth and secular modernists and building inflation pressures Proximity to war-torn Syria High business cycle and currency risk Lira is a volatile emerging market currency Political & Governance Indicators Economic Indicators World Bank RankingEase of doing GDP ($US bn) business 43rd/190 GDP per capita ($US) Freedom House-Political rights and civil Real GDP growth (15-year average, %) liberties Partly Free Fiscal balance % of GDP) Transparency International Ranking- Public debt (% of GDP) Corruption Perception Index 78th/180 Foreign direct investment (% of GDP) OECD country risk rating 5 Current account (% of GDP) (Scale: 07,0 is least risk, 7 is highest risk) External debt % of GDP) Foreign reserves (% of GDP) 769 9,445 2.6 -1.9 30.4 1.7 -5.7 56.7 12.0

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