Chat with AI
International Business 9th Edition by Charles Hill
Edition 9ISBN: 978-0078029240International Business 9th Edition by Charles Hill
Edition 9ISBN: 978-0078029240 Exercise 1
You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company'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 " FDI Confidence Index " which is updated periodically. Find this index and provide additional information regarding how the index is constructed.
top 25 countries in terms of FDI attractiveness is a crucial ingredient for your report. A colleague mentioned a potentially useful tool called the " FDI Confidence Index " which is updated periodically. Find this index and provide additional information regarding how the index is constructed.
Explanation
Verified
Verified
The FDI confidence index first appeared in 1998 which assessed the impact of political, economic and regulatory changes on the FDI based on the intention and preferences of top company's leaders.
FDI confidence index is a tool that offers an in-depth view for future global investment. It illustrates the attractive and ugly part of each company. Thereby, it helps individuals to understand the sectors that are facing recession or boom. A detailed analysis of this report enables an individual to make an investment in a profitable company or sector. The index rates each country on the basis of their attractiveness and the potential growth ratio.
FDI confidence index is constructed using primary data. Therefore, a proprietary survey is conducted from senior executives-level executives, regional and business heads of world's leading companies. The report includes all industrial sectors of those countries whose global revenue is more than $500 million. Hence, at present, there are 27 participating countries.
The index indicates a high, medium and low likelihood of FDI based on the weighted average response of the respondent. Therefore, the index values don't include the response of the source country. For example, the index value for U.S is calculated without including the responses from U.S based corporate investors. The main motto of this survey is to remove the chance of biasness and favoritism. Report is mainly prepared at the interval of three years. Attractiveness to invest run from top to bottom hence, country at the top of index represents attractive investment targets.
FDI confidence index is a tool that offers an in-depth view for future global investment. It illustrates the attractive and ugly part of each company. Thereby, it helps individuals to understand the sectors that are facing recession or boom. A detailed analysis of this report enables an individual to make an investment in a profitable company or sector. The index rates each country on the basis of their attractiveness and the potential growth ratio.
FDI confidence index is constructed using primary data. Therefore, a proprietary survey is conducted from senior executives-level executives, regional and business heads of world's leading companies. The report includes all industrial sectors of those countries whose global revenue is more than $500 million. Hence, at present, there are 27 participating countries.
The index indicates a high, medium and low likelihood of FDI based on the weighted average response of the respondent. Therefore, the index values don't include the response of the source country. For example, the index value for U.S is calculated without including the responses from U.S based corporate investors. The main motto of this survey is to remove the chance of biasness and favoritism. Report is mainly prepared at the interval of three years. Attractiveness to invest run from top to bottom hence, country at the top of index represents attractive investment targets.
International Business 9th Edition by Charles Hill
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
