lOMoARcPSD|31356249
01 e LMS Quiz 1 - ARG The 2021 Kearney Foreign Direct
Investment Confidence Index
General Education (STI West Negros University)
Studocu is not sponsored or endorsed by any college or university
Downloaded by FA20-BBA-279 (MUHAMM Unknown (fa20-bba-279@cuilahore.edu.pk)
lOMoARcPSD|31356249
ELMS QUIZ
CASE: 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 Foreign
Direct Investment (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
a regular survey of global executives conducted by A.T. Kearney.
Instruction: Find this index and provide additional information regarding how the index is constructed.
Provide insights from the FDI Confidence Index. As a manager of an international business, how can you utilize this
information?
The 2021 Kearney Foreign Direct Investment Confidence Index
The Foreign Direct Investment Confidence Index is an indicator created by A.T. Kearney, a global
management consulting firm operating in 40 countries across the world. It an annual survey of global
business executives that rank the markets likely to attract the most investment in the next three years.
The FDI confidence Index provides insight for global investment. It was established in 1998 that
provides major contributions to the foreign investing countries by providing FDI potential and inflows of
various nations.
The index ranks countries on a scale from 0 to 3 based on their attractiveness for foreign direct
investments. A score of 3 represents the highest level of confidence. The index is constructed using data
from a survey capturing the opinions of senior executives and regional and business leaders from 25
countries with high FDI out word flows. Within the survey, the respondents are asked what is the
likelihood to make a direct investment in a given country over the next three years: high, medium, low or
"no interest". The individual responses are aggregated to produce a country score.
Developed markets maintain their highest share ever—for the third year in a row
The United States once again takes the top ranking—for the ninth consecutive year. Canada remains second, and
Germany maintains its third spot. And the United Kingdom rejoins the top five after ranking sixth last year. France
falls modestly—to sixth place after holding the fifth spot for three years in a row, a position now taken by Japan,
which dropped from fourth last year. It is noteworthy that the top 10 countries on the Index remain unchanged from
2020, apart from Spain joining the list and China falling out.
Downloaded by FA20-BBA-279 (MUHAMM Unknown (fa20-bba-279@cuilahore.edu.pk)
lOMoARcPSD|31356249
BM1917
The new findings show a clear predisposition for larger, more advanced markets insofar as the same six economies
were at the top of the rankings last year (see figure 2). In fact, this year marks the third time in the 23-year history
of the Index—and the third consecutive year—in which the top five spots are all held by developed economies. This
continued strong showing of advanced economies likely stems from conducive regulatory environments coupled
with skilled workforces, advanced tech infrastructure, and economic stability. When it comes to pinpointing the
factors that are most important for investment decisions, respondents indicated taxation as the top consideration,
but also important are technological and innovation capabilities as well as R&D capabilities—areas of strong
competitive advantage for most developed economies.
As a manager of an international business, how can you utilize this information?
The Foreign Direct Investment Confidence Index can be affirmed a helpful and powerful tool for
business leaders and entrepreneurs to assist them in the decision-making process. It is because, first, it is
valuable information that has been collected worldwide for experts, second, it is reliable and generally
objective since it uses mostly primary high-quality sources, and lastly, it encompasses industries from
different sectors. The FDICI can be utilize as the guide to further gather information about the top
countries in the index, use different reports and studies to support and validate the investment decisions
of the international business on where to look for new growing opportunities. As a manager working for a
company that is considering investing in a foreign country, I can use this tool to make good decisions
where certain country the company should start operating the business. This index can be also use for
studying and understanding a particular country situation over, at least, three years and the companies
feel more confident to invest their money.
Rubric for grading:
Criteria
Pts Grading scale
Organization
30
6
Poor
No main idea,
no details,
many
incomplete
sentences,
many
misspellings,
incorrect
grammar
12
Fair
Main idea not
clear, very few
details, some
incomplete/runon
sentences,
some
misspellings,
some problems
with subjectverb
agreement
18
Average
Main idea
presented,
details not
connected,
very
short/choppy
sentences, few
misspellings,
consistent
subject-verb
agreement but
with tense,
person, voice
shifts
24
Good
Ideas
expressed
clearly,
supported with
details,
consistent
sentence
structure, no
misspelled
words,
consistent but
simple
subjectverb
agreement,
tense, person,
voice shifts
01 eLMS Quiz 1
30
Excellent
Creative and
original ideas,
interesting
details, varied
sentences or
openers,
varied
vocabulary,
correct
grammar with
complex text
*Property of STI Page 1 of 1
Downloaded by FA20-BBA-279 (MUHAMM Unknown (fa20-bba-279@cuilahore.edu.pk)