Economic+Analysis

__Comparative Analysis of Two National Economies__

 * Country analysis** involves the examination and interpretation of a nation’s economic, social and political environment. The analysis offers a comprehensive overview of a country. Country analysis is useful for:
 * Investors in the financial market
 * Companies intending to set up a subsidiary
 * Companies wishing to enter a new market
 * People wishing to reside in the country

__Factors Considered in a Country Analysis__
A country analysis is often conducted through country reports researched by professional government or independent firms, such as the Economist Intelligence Unit, World Bank and Organization for Economic Cooperation and Development (OECD). Some of the data points considered in a country analysis are: > > > **__Project Requirements: Your tasks:__** > > 1. Read and then read some more. > 2. Choose two countries that you think are good choices for global investors and FDI. > 3. Identify and research at least ten economic indicators for each country. (You will type your information as a table with most accurate and up-to-date data.) > 4. Research the economic and political trendsd for each country. > 5. Write good answers to the following questions:
 * Economic Indicators: Indicators such as gross domestic product (GDP), consumer price index (CPI), inflation rate and producer price index (PPI) help in gauging a country’s economic health. High GDP growth, low inflation and high CPI are favorable for companies and investors. These indicators also reflect job availability and standard of living in the country.
 * Government Policy: Governments often introduce policies and programs to promote the growth of certain industries. Favorable government policies (such as subsidies and tax rebates) attract multinational and domestic companies.
 * Industry Association Support: An industry association not only works towards enhancing opportunities, but also lobbies the government for easing regulations.
 * Financial Markets: The extent of regulations, liquidity and volatility determine how reliable the financial markets in a country are. The efficiency of the financial market is a critical determinant of the risks faced by companies and investors.
 * Trading Conditions: Poor trading conditions adversely impact the profit generating capabilities of businesses.
 * Human Capital: The availability of skilled human resource and the salaries drawn by them reflects the heath of a country.
 * Infrastructure: This includes data points such as condition of roads, number of ports, educational institutions, penetration of the Internet and availability of support services.
 * Political Scenario: Political stability offers a favorable backdrop for businesses to thrive. The political climate and risks and the future developments form critical data points for decision making.

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 * What is the health of each nation's economy?
 * What are the biggest economic challenges each nation is facing?
 * Which nation is the best one in which to invest? Explain why you made this determination.
 * Type and print your answers.
 * Type and print your answers.