Question

Country Profile

Choose a country.

This assignment will be completed on your own. The object of this assignment is to analyze the economic health and productivity of a country. You will need to gather data and then analyze the data and supply a recommendation as to whether your fictional boss should open a business in this country. Begin by gathering economic data, a list of where to start is below (these are only some, you should think of other data points that will aid your analysis:

GDP

Population

Inflation rate

Unemployment rate

Worker productivity (there are a number of calculations for this)

Exchange rate

Total debt – government and individual

Government deficits

Mean or median population age

Labour force participation rate

Exports

Imports

Once you have gathered sufficient data please analyze that data to determine if this country would be a good country to open a business in.

This paper should be 2-3 pages long and use proper APA citations.

Answer 1

Answer:

Brief Outline:

• For any country you choose, there are few major factors that you need to consider when deciding whether a country or a region is a good place to manage a successful business. For instance, consider India as a country.
• To understand or to analyze whether India is a good country to invest in or to open a business, you have to evaluate the economic and human development indicators as well as look into the demographic dividend. This will not only give you a concrete idea about the economic status of the country but also help you to understand how well endowed are the people of this nation.
• While looking into GDP is important, by itself it is a futile measure because it is in absolute terms. Two countries can have more or less the same GDP but if the GDP per capita is largely different, then it suggests that one country is relatively poor than the other. Thus the GDP per capita will help you to evaluate how well off are the individuals in a country. Now India is a densely populated nation with an estimated population of 1.366 billion and a GDP per capita of $2009 USD. But this is not sufficient to understand whether it is a good country to open a business in.
• Let us take a look at the unemployment rate, India has an UR of 8.87% as of 2020, and in fact, this statistic has only increased in 2020. It seems, that this country has a high rate of unemployed workers and thus this may not be a good factor for your business. You can also look into a country's purchasing power parity, it helps to understand how many goods/basket of goods can a country buy. India is the third-largest economy in terms of PPP, and thus it seems that opening a business in India will be beneficial from a sales point of view.
• Few other external factors to consider is to evaluate India's net foreign assets, this helps you to see how much do foreign nations invest in a country's assets (stocks) relative to how much India borrows from other countries. You can also look into India's debt to GDP ratio. This will help you to understand how much of its GDP does the country owe as debt. The reason why Government factors are important because it will help you to evaluate whether a country is capable of managing its own earnings or is dependent on external borrowing. The higher the debt to GDP ratio for a country, the more reliant on debt that country is. India's debt to GDP ratio is almost 72% of its GDP. That does not look so good!
• Lastly, you can evaluate how volatile is the country's exchange rate. Why is this a crucial factor? Well if exchange rates fluctuate a lot, it can affect your business' earnings.