In: Economics
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. 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 Foreign Direct Investment (FDI) Confidence Index. The FDI Confidence Index and provide additional information regarding how the index is constructed.
AT Kearney, a global consultancy firm publish this FDI confidence index each year. FDI confidence index is basically the analysis or impact of social, economic and regulatory changes on FDI and the preferences of CEOs and CFOs of the Global 1000 companies. In other words, this eport depicts the detailed commentary on markets and the impact of global trade issues have on their FDI attractiveness as well as ranking of top 25 countries. It is contructed through from the survey administered to top management of the world's leading corporations. The companies which take part in survey have annual turnover of 500 million or more annual revenue. My country india has 1.54 FDI confidence index in the year 2019. According to FDI confidence index, USA has a maximum score of 2.26 followed by Canada having a score of 2.20. Third one is Germany having a score of 2.15 followed by Japan and france having a score of 2.14 and 2.09 respectively.