How to Write a Country Analysis Term Papers
The following illustrates all the aspects that Paper Masters' believes should be in a good country analysis research paper.
I. Political/legal aspects:
- Government involvement in business regulation and ownership/planning as well as prices (Freedom from government and business freedom indeces in Heritage Foundation website) -Country’s trade policy (Trade freedom index in Heritage Foundation and Trading Across Borders indices on World Bank’s doingbusiness.org)
- Country’s laws regarding ownership (FDI): are foreign companies allowed to own 100%; are there restrictions in specific industries for FDI? (Investment freedom index in Heritage Foundation) -Protection of property rights (Property Rights index Heritage Foundation) -Enforcement of contracts (World Bank’s doingbusiness.org website) -Assessment of citizens’ freedom [civil and political freedom indices]…ratings for political and civil rights provided by Freedom House’s (website provided) -Corruption (Transparency International’s ratings and World Bank’s doingbusiness.org)
II. Economic aspects (much of this can be found in the CIA website)
-Structure of the economy (percentage agriculture, service, vs. manufacturing) -Standard of living (degree of poverty, distribution of income –if noting GINI index, explain whether rating means income is well distributed or not) -Purchasing power per capita income, country’s GDP and the percentage of economic growth (in previous year, and also try to find historical growth – past 3-5 years), -Inflation (previous year and past 3-5 years) -Balance of payments – current account (surplus/deficit) -Foreign exchange system: type of system (fixed, floating); restrictions on converting currency?
-Corporate tax structures (what % do companies pay in taxes?) (Available at Heritage Foundation’s website)
III. Socioeconomic and cultural aspects
-Population, growth of population
-Labor force (distribution of labor in different sectors of the economy) -Level of unemployment -Cultural values (www.geert-hofstede.com) -How difficult is it to hire and fire employees as well as change the number of working hours (Labor Freedom index in Heritage Foundation’s website and World Bank’s doingbusiness.org) -Ethnicity in population, issues with ethnic groups -Gender issues is any (participation of women in workforce)
-Unions: are they allowed, are they powerful, do they strike a lot, what percentage of the workforce is unionized (some info in Freedom House)
IV. Conclusion of Country Analysis
Discuss the pros and cons of the information you found regarding the political, legal, economic and cultural environment of the country you are studying. Given your analysis of the information what level of political and legal risk would a company run if investing in this country? Would you invest? Given your analysis of the information what level of economic risk would a company run if investing in this country? Would you invest? Given the socioeconomic and cultural aspects of the country, do you have any serious concerns regarding investing in the country?