• For investment, either portfolio or foreign direct investment (FDI) in each country, what index component(s) score or ranking in either of the two indices would
  • most encourage you to do business there?
  • most discourage you from doing business there?
  • Considering the risk and return and the data collected above and in the prior assignment, how likely would you be to invest in both countries? Explain.

Countries- SOUTH KOREA and CHINA

Part I: Heritage Foundation 2019 (or later year) Index of Economic Freedom High Income County: Low and Medium Income Country: South Korea China Overall Score 74.6 48.0 World Ranking 19 158 Rule of Law Properties Rights 90.5 43.7 Government Integrity 69.2 39.3 Judicial Effectiveness |77.1 37.4 Government Size Government Spending 84.5 64.2 Tax Burden 60.4 71.2 Fiscal Health 195.3 11.1 Open Markets Trade Freedom 73.0 73.2 Investment Freedom 60.0 20.0 Financial Freedom 60.0 20.0 Regulatory Efficiency Business Freedom 84.8 68.8 Labor Freedom 55.6 57.2 Monetary Freedom 85.2 70.0Part II: Cato Institute Economic Freedom Ratings Last Year for Which data High Income County: Low and Medium Presented: 2020 South Korea Income Country: China Summary Rating 7.43 6.27 Summary Rank 43 116 Size of Government 6.43 4.97 Legal System and Property 6.65 5.12 Rights Sound Money 9.65 8.44 Freedom To Trade 7.16 6.56 Internationally Regulation 7.32 6.24