BY : Kiran.s.s Roll.

No: 31

Question:1 FDI

 Introduction
The Foreign Direct Investment Confidence Index is a regular survey of global executives conducted by A.T. Kearney. The Index provides a unique look at the present and future prospects for international investment flows.

FDI CONFIDENCE INDEX :

Rank 2007 1 5 6 3 10 11 7 4 21 16 2010 1 3 4 2 5 7 24 10 20 21 2012 1 2 3 4 5 6 7 8 9 10 Country China India Brazil United States Germany Australia Singapore United Kingdom Indonesia Malaysia FDI Confidence Index 1.87 1.73 1.60 1.52 1.52 1.52 1.47 1.47 1.45 1.41

MOST COMPETITIVE COUNTRY IN THE WORLD

Country Singapore Hong Kong USA Switzerland Australia Sweden Canada Taiwan Norway Malaysia Ranking 2011 1 2 3 4 5 6 7 8 9 10 2010 3 2 1 4 7 6 8 23 11 18 2011 Score 100 99.357 99.091 96.126 92.172 90.893 90.459 90.441 89.987 87.228

MOST COMPETITIVE COUNTRY IN THE WORLD

The IMD World Competitiveness Yearbook (WCY) is the world s most renowned and comprehensive annual report on the competitiveness of nations, ranking and analysis of how a nation s environment creates and sustains the competitiveness of enterprises. IMD analyze the countries based on four main criteria namely Economic Performance, Government Efficiency, Business Efficiency and Infrastructure.

Global Competitiveness Index 2011-12

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Switzerland Singapore Sweden Finland United States Germany Netherlands Denmark Japan United Kingdom 5.74 ( ) 5.63 (+1) 5.61 ( 1) 5.47 (+3) 5.43 ( 1) 5.41 ( 1) 5.41 (+1) 5.40 (+1) 5.40 ( 3) 5.39 (+2)

Exercise 1 in Chapter 2
y The Freedom in the World survey evaluates the state of

political rights and civil liberties around the world. Provide a description of this survey and a ranking (in terms of freedom ) of the leaders and laggards of the world. What factors are taken into consideration in this survey when forming the rankings?

View
y The survey provides ratings and narrative reports for 193 countries and 15

related territories.
y The survey examines press laws, political and economic constraints on news

reporting, and cases of press freedom violations. y The Nations in Transit is a comprehensive annual progress report on the status of the political and economic reforms in the emerging democracies and transitional countries of Eastern Europe and the former Soviet Union.
y This survey Considering factors like free(F) 0-30 ,Partly free(PF) 31-60,Not

free(NF)61-100 score respectively. y A= Laws and regulations that influence media content. Legal environment ("A" category): 0-30 B= Political pressures and controls on media content (including harassment or violence against journalists or facilities, censorship, self-censorship etc) Political environment ("B" category): 0-40 C= Economic influences over media content. Economic environment ("C" category): 0-30

Press Freedom Edition Year(s) Covered Afghanistan Australia Bangladesh Bhutan Brunei Burma (Myanmar) Cambodia China East Timor Fiji Hong Kong India Indonesia Japan Kiribati Laos Malaysia Maldives Marshall Islands Micronesia Mongolia Nauru Nepal New Zealand North Korea Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands South Korea Sri Lanka Taiwan Thailand Tonga Tuvalu Vanuatu Vietnam

2010 2009 SCORE STATUS 76 NF 22 F 56 PF 57 PF 75 NF 95 NF 61 NF 84 NF 35 PF 54 PF 33 PF 33 PF 52 PF 21 F 27 F 84 NF 64 NF 50 PF 17 F 21 F 39 PF 28 F 59 PF 14 F 99 NF 61 NF 14 F 24 F 48 PF 29 F 68 NF 29 F 30 F 72 NF 24 F 58 PF 32 PF 26 F 23 F 82 NF

2011 2010 SCORE STATUS 75 NF 21 F 54 PF 57 PF 75 NF 94 NF 63 NF 85 NF 35 PF 57 PF 32 PF 35 PF 53 PF 21 F 27 F 85 NF 64 NF 50 PF 17 F 21 F 39 PF 28 F 59 PF 15 F 97 NF 61 NF 14 F 25 F 46 PF 30 F 68 NF 29 F 32 PF 71 NF 25 F 62 NF 31 PF 26 F 25 F 83 NF

2011
2010 A 22 5 17 18 28 30 21 29 11 18 11 9 18 2 6 26 24 17 2 2 14 4 16 3 30 18 1 4 13 7 24 6 9 23 7 19 11 3 6 28 B 33 9 21 20 25 37 23 34 11 27 12 17 20 13 8 33 23 17 6 8 13 11 28 6 38 27 5 11 22 14 23 12 14 30 9 28 10 11 11 33 C 20 7 16 19 22 27 19 22 13 12 9 9 15 6 13 26 17 16 9 11 12 13 15 6 29 16 8 10 11 9 21 11 9 18 9 15 10 12 8 22 SCORE 75 21 54 57 75 94 63 85 35 57 32 35 53 21 27 85 64 50 17 21 39 28 59 15 97 61 14 25 46 30 68 29 32 71 25 62 31 26 25 83 STATUS NF F PF PF NF NF NF NF PF PF PF PF PF F F NF NF PF F F PF F PF F NF NF F F PF F NF F PF NF F NF PF F F NF

Exercise 2 in chapter 2
y Market Potential Indicators (MPI) is an indexing study

conducted by the Michigan State University Center for International Business Education and Research (MSUCIBER) to compare emerging markets on a variety of dimensions. Provide a description of the indicators used in the indexing procedure. Which of the indicators would have greater importance for a company that markets laptop computers? Considering the MPI rankings, which developing countries would you advise this company to enter first?

Dimension

Weight Measures Market Potential for 2010 Dimensions and Measures ofUsed 10/50
y y

Market Size

Urban population (million) -20091

Electricity consumption (billion kwh) - 20072 Average annual growth rate of primary energy use (%) - between years 200320072 Real GDP growth rate (%) - 20091 GNI per capita estimates using PPP (US Dollars) - 20091 Private consumption as a percentage of GDP (%) - 20081 Percentage share of middle-class in consumption/income (2009)1 Main Telephone lines (per 100 habitants) - 20093 Cellular mobile subscribers (per 100 habitants) - 20093 Number of PC's (per 1000 habitants) - 20094 Paved road density (km per million people) - 20094 Internet users (per 100 habitants) - 20093 Population per retail outlet - 20094 Percentage of Households with TV - 20094 Economic Freedom Index - 20105 Political Freedom Index - 20106 Per capita imports from US (US Dollars) - 20097 Trade as a percentage of GDP (%) - 20091 Country risk rating - 20108

Market Growth Rate

6/50

Market Intensity

7/50

y y

Market Consumption Capacity Commercial Infrastructure

5/50 7/50

y y y y y y y

Economic Freedom

5/50

y y

Market Receptivity

6/50

y y

Country Risk

4/50

Overall Rank

Country

Market Size 1 100 1 10 1 4 1 1 38 6 21 11 10 3 2 4 4 4 4 2 24 6 5 6 3 3

Market Growth Rate 45 100 25 31 13 33 22 1 78 36 36 53 18 19 13 45 49 33 43 41 1 58 24 24 32 34

Market Intensity 100 1 81 64 51 60 70 71 26 67 47 41 61 29 50 58 17 36 52 50 40 61 62 46 48 40

Market Consumption Capacity 48 60 57 100 94 78 74 90 60 65 20 63 27 73 24 75

Commercial Infrastructure 100 33 89 85 91 79 72 82 9 48 52 33 46 59 50 39 54 52 45 36 49 79 48 1 9 60 54 57 33 65 1 31 12 45 43

Economic Freedom 93 2 77 83 88 77 79 82 47 58 55 50 70 49 100 25 22 43 48 69 11 29 41 67 55 1

Market Receptivity 81 2 100 15 13 5 19 17 3 10 1 1 17 28 11 4 12 16 3 3 2 1 5 29 2 4

Country Risk 100 64 98 73 78 63 66 60 50 40 50 33 51 37 71 34 71 38 14 41 44 1 26 48 39 6

Overall Score 100 92 90 71 56 51 51 49 48 36 28 27 27 26 26 25 23 21 19 17 17 14 12 8 7 1

1 Hong Kong 2 China 3 Singapore 4 South Korea 5 Czech Republic 6 Poland 7 Israel 8 Hungary 9 India 10 Turkey 11 Brazil 12 Indonesia 13 Mexico 14 Malaysia 15 Chile 16 Egypt 17 Saudi Arabia 18 Thailand 19 Argentina 20 Peru 21 Russia 22 Pakistan 23 Philippines 24 South Africa 25 Colombia 26 Venezuela

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y According to me, my India is the best choice to enter

first to market regarding laptops y Because the market size, growth shows is far better to other country s even though lacking in commercial infrastructure in the country like INDIA y The country risk is also in moderate position, so the developing nation like India is the best choice to root here.

SOURCE
y http://globalEDGE.msu.edu y http://globalEDGE.msu.edu/knowledge-tools/mpi/

THANK U!!