Country Analysis Project: Part C With the countries you analyzed for Parts A and B, please answer the questions below and turn in to Canvas by Saturday, August 17th, 2019 by 11:59EST. PLEASE NOTE: The countries you choose for Part A will be the countries you refer to through Parts A, B, and C. If, for some reason, information is not available for your country at the websites cited by a particular question, please choose another country to answer that question, and NOTIFY ME and MAKE NOTE in the Project of the CHANGE. This Project is worth 70 points. I will run the submissions through an anti-plagiarism software. Failure to reference the websites or any other research will result in a grade reduction of 8 points in your project score. Please include the tables provided by the websites! Failure to do so will result in half the points being subtracted from your grade. Last but not least, please place your name as a header in the file. This makes it easier for me to grade and causes less confusion for you in the future. Failure to do this may result in points (-5) being subtracted from your grade. Economy (20 points) Using the two countries from Part A, go to globaledge.msu.edu You may also go to cia.gov Factbook pages to research your countries. Please make sure you include tables from your research for each country. 1. Describe the Economy. a. Describe the economy (using the CIA Factbook) for Country 1 (5 points) and provide table for the following economic indicators: (5 points) i. Current Account Balance ii. Inflation iii. Manufacturing Value Added iv. GDP Growth v. GDP per capita, PPP b. Describe the economy (using the CIA Factbook) for Country 2 (5 points) and provide table for the following economic indicators: (5 points) i. Current Account Balance ii. Inflation iii. Manufacturing Value Added iv. GDP Growth v. GDP per capita, PPP Infrastructure (20 points) 2. For each country, look up the following Infrastructure determinants – http://globaledge.msu.edu/ https://www.cia.gov/library/publications/the-world-factbook/ https://www.cia.gov/library/publications/the-world-factbook/ a. mobile cellular subscriptions; b. Roads, total network; c. Rail lines; d. Transport; and e. Internet Users. Do not just supply this information in the form of tables, also explain why infrastructure is important to FDI. a. Country 1 – why is infrastructure important (5 points) and indicators tables and or graphs (5 points) b. Country 2 why is infrastructure important (5 points) and indicators tables and or graphs (5 points) HINT: In order to properly compare these numbers, you may want to scale these numbers per capital - divide each infrastructure indicator by population. The population is on the CIA Factbook. Investment Potential (30 points) 3. Overall, what is your group’s informed opinion as to how receptive your countries are to FDI? a. Which country, of the pair,.

1. Country Analysis Project: Part C
With the countries you analyzed for Parts A and B, please
answer the questions below and
turn in to Canvas by Saturday, August 17th, 2019 by 11:59EST.
PLEASE NOTE: The countries you choose for Part A will be the
countries you refer to through
Parts A, B, and C. If, for some reason, information is not
available for your country at the
websites cited by a particular question, please choose another
country to answer that question,
and NOTIFY ME and MAKE NOTE in the Project of the
CHANGE.
This Project is worth 70 points. I will run the submissions
through an anti-plagiarism software.
Failure to reference the websites or any other research will
result in a grade reduction of 8 points
in your project score.
Please include the tables provided by the websites! Failure to
do so will result in half the points
being subtracted from your grade.
Last but not least, please place your name as a header in the
file. This makes it easier for me to
grade and causes less confusion for you in the future. Failure to
do this may result in points (-5)
being subtracted from your grade.
Economy (20 points)

2. Using the two countries from Part A, go to globaledge.msu.edu
You may also go to cia.gov
Factbook pages to research your countries. Please make sure
you include tables from your
research for each country.
1. Describe the Economy.
a. Describe the economy (using the CIA Factbook) for Country
1 (5 points) and
provide table for the following economic indicators: (5 points)
i. Current Account Balance
ii. Inflation
iii. Manufacturing Value Added
iv. GDP Growth
v. GDP per capita, PPP
b. Describe the economy (using the CIA Factbook) for Country
2 (5 points) and
provide table for the following economic indicators: (5 points)
i. Current Account Balance
ii. Inflation
iii. Manufacturing Value Added
iv. GDP Growth
v. GDP per capita, PPP
Infrastructure (20 points)
2. For each country, look up the following Infrastructure
determinants –
http://globaledge.msu.edu/

3. https://www.cia.gov/library/publications/the-world-factbook/
https://www.cia.gov/library/publications/the-world-factbook/
a. mobile cellular subscriptions;
b. Roads, total network;
c. Rail lines;
d. Transport; and
e. Internet Users.
Do not just supply this information in the form of tables, also
explain why infrastructure is
important to FDI.
a. Country 1 – why is infrastructure important (5 points) and
indicators tables and or
graphs (5 points)
b. Country 2 why is infrastructure important (5 points) and
indicators tables and or
graphs (5 points)
HINT: In order to properly compare these numbers, you may
want to scale these
numbers per capital - divide each infrastructure indicator by
population. The
population is on the CIA Factbook.
Investment Potential (30 points)
3. Overall, what is your group’s informed opinion as to how
receptive your countries are to
FDI?
a. Which country, of the pair, is the most receptive? Provide a
well-reasoned
argument using the evidence presented in Projects Part A, Part

4. B, the
Economics and the Infrastructure parts of this project.
b. Country 1 – well-reasoned argument (4 points), and data from
Part A (2 points),
Part B (2 points), and Part C (2 points)
c. Country 2 well-reasoned argument (4 points), and data from
Part A (2 points),
Part B (2 points), and Part C (2 points)
d. Compare and contrast corruption in both countries and their
opportunities for FDI
(10 points)
Country Project Part C Rubric
Names:
Countries:
1. Economy
Possible
Points
Describe Country 1 5
include tables 5
Current Account Balance
Inflation
Manufacturing, Value Added
GDP Growth
GDP per capita, PPP
Describe Country 2 5
include tables 5

5. Current Account Balance
Inflation
Manufacturing, Value Added
GDP Growth
GDP per capita, PPP
Total Economy 20
2. Infrastructure
Country 1
Why is infrastructure important? 5
Indicators: include tables 5
Mobile: Cellular Subscriptions
Roads: total network
Rail lines
Air Transport
Internet Users
Country 2
Why is infrastructure important? 5
Indicators: include tables 5
Mobile: Cellular Subscriptions
Roads: total network
Rail lines
Air Transport
Internet Users
Total Infrastructure 20
3. Investment Potential
Country 1
Investment Potential Continued:
Well-reasoned argument pro or con using data from 4
Part A 2
Part B 2
Part C 2

6. Country 2
Well-reasoned argument pro or con using data from 4
Part A 2
Part B 2
Part C 2
Compare and contrast corruption in both countries and their
opportunities
for FDI 10
Total Investment Potential 30
Failure to reference -8
Failure to insert tables -31
Up to one week late -7
After one week late -31
Failure to place names in the digital file -5
Total Part C 70
Running head: TRADE AND INVESTMENTS 1
TRADE AND INVESTMENTS 7
Trade and Investments
Angela Diaz
MBA-646
07/28/2019

7. Trade and Investments
TRADE AND INVESTMENT
Country explanation
Saudi Arabia
Saudi Arabia is a country located in the Middle East. It is
the leading economy in the Middle East region. The region
mainly relies on oil, which makes it the backbone of the
country’s economy. The country is made up of mostly deserts.
Some of the neighboring countries include the UAE, Qatar,
Oman, Jordan, and Kuwait. It has a monarchial system of
governance, and the head of government is the prime minister
and the King. The general; set up of the country plays an
effectual role in promoting the economic development of the
country (Sharpe, 2018). Since the country has readily available
labor that facilitates it to boost its economy in a positive way. It
is a key member of the Arab league which enables it to
participate in major economic activities in the region.
Argentina
Argentina is a South American country found in the
southern part of the Atlantic Ocean. The country is
economically stable and has a positive GDP as it can correctly
utilize its economic resources. The neighboring countries
include Brazil, Bolivia, Uruguay, and Paraguay. It is a republic
meaning that it observes democracy. The mixed economy
system of the country perfectly plays an essential role in the
development of the nation. It has developing private freedom
that has a centralized economic planning system (Sharpe, 2018).
The fact that it is a member of the South American common
market is a common factor that creates a broader on the way it
applies. It is a positive factor that has played an essential part

8. in boosting the economic skeptic of the country. Therefore, it is
a key economy in South America.
Comparative Advantage
Saudi Arabia
The production of oil makes Saudi Arabia have an existing
comparative advantage over its competitors. The action enables
it to export its oil to finance its major imports. It allows the
country to participate freely in world trade without any
difficulties that may seem to hinder its operations. It is a
significant contributor to its overall wealth. The cheap
production of oil has positively contributed to the economic
development of the country.
Argentina
Agriculture is the main factor that makes the country has a
comparative advantage in global trade. Agriculture makes up
54% of the exports that the country makes on a global basis.
Today, it makes up the 5th largest exporter of wheat in different
parts of the world. The utilization of the exports enables the
country to be a significant importer of the basic commodities
that it requires to promote economic development.
Firms and Industry
Saudi Arabia
Firms in Saudi Arabia play a huge part in the creation of
comparative advantage to the country. Top companies such as
SMH industrial Services plays an essential role in the cheap
production of oil, which has created a positive advantage for the
industry. Other companies such as Vallourec has played a
fundamental role in the creation of positive operational skeptics
within the industry (Sharpe, 2018). Ideally, the positive
contributions of the firms enable the country to earn revenue in
a required manner.
Argentina
The agricultural sector in Saudi Arabia has played an
essential in the economic development of the country. The firms
ensure that the comparative advantage that they have is

9. maintained in a positive way which contributes to the
emergence of the country as a global exporter. Some of the
companies include Al Este, Aluar, and America 24.
COUNTRY RISK
6 factors world bank
Voice and accountability is a major governance indicator
that aids in the provision of better performance in a country. It
aids in the identification of key economic issues that positively
contributes to the growth of the country. It is a major issue that
positively contributes to the growth of the country. Political
stability is a clear indicator that the country is making progress
in terms of security. A stable country reflects on the ability of
the country to relate with the political dynamics in a perfect
manner positively. Government effectiveness aids in the
analysis on the country in terms of governance and
implementation of order which important. The regulation of
quality is a key indicator that ensures that the country
progresses in a positive manner. Quality regulation plays an
important role in ensuring that the existence of counterfeit
products in the country is completely eliminated (Brink, 2014).
This is a practice that the government needs to ensure that it is
perfectly controlled based on the complication involved in the
whole set of activity. A look at key factors such as the rule of
law. The control of corruption is a factor that is used to assess
the level of integrity in the country. A control of corruption
indicates the ability of the country to progress economic wise
without any form of hindrance that might affect its progress in a
positive manner.
Compare and Contrast the primary sources of political risk in
both countries
Social instability is a major primary political risk factors
that affects both countries. The issue relates to fundamental
problems such as the political structures of the country. A look
at Saudi Arabia provides a broader understanding of how the
matter needs to be approached when it comes to top main issues
that involve the political interests of the country. This is a basic

10. matter of concern that involves a social understanding of how
specific issues need to be handled. The political structures in
Saudi Arabia are more stable since they rely on the Islamic
system to create them. The structures of Argentina are also
stable, making both countries to experience a high level of
political stability in the required manner. A look at the political
violence as a primary source of political risk provides a broader
illustration of how the matter could be effectively handled in
this case (Brink, 2014). This is an important practice as it
would lead to a perfect social understanding of how specified
issues need to be handled when it comes to addressing the
interests. The political violence in both countries is quite low,
creating a competitive advantage for both countries in this case.
Lastly, government incapability is also another source that can
be used to assess the level of political stability. In this case,
both governments are capable of dealing with all its duties in a
perfect manner.
Country Score Explanation
Saudi Arabia
Voice and accountability in Saudi Arabia increased in
2017. Political stability has reduced over the past three years in
the country. The level of government effectiveness risen in
2017 to 62.50. The regulatory quality reduced compared from
the year 2012 and 2017. The effectiveness of the rule of law
was also the same. Lastly, the level of corruption in the country
has increased.
Argentina
In terms of the voice of accountability, Argentina is quite
high, which is a clear and key factor. The level of political
stability in Argentina is high compared to India. Government
effectiveness is quite lower in Argentina compared to Saudi
Arabia. The regulatory quality in Argentina is quite lower. The
level of the rule of law is high in Argentina.
References

11. Sharpe, W. F. (2018). Investors and markets: Portfolio choices,
asset prices, and investment advice. Princeton, N.J: Princeton
University Press.
Brink, C. H. (2014). Measuring political risk: Risks to foreign
investment. Aldershot: Ashgate.
6
Country Analysis Project Part A
Angela Diaz
MBA 603: International Business
7/12/2019
A: CULTURE
a) Cultural Dimensions
1. Power Distance
This dimension addresses the detail that all societies are not
identical. Power distance refers to the level to which the
slightly strong individuals of organizations and institutions
anticipate and approve the unbalanced placement of power. If
the value of power distance is high for a country, it means
power is distributed on the basis of ranking (Hofstede Insights,
n.d.).
2. Individualism
Individualism makes a reference to the level of interdependence
which a society conserves between its residents. A high score of
individualism on Hofstede indicates the higher focus of the
individuals upon themselves and their individual families.
3. Masculinity
Masculinity indicates the degree of competition and success
propelling a society. A high score on this dimension means a

12. society is propelled by the success as compared to affection. A
low score shows that the society links greater significance to
the love and care as compared to the success (Hofstede Insights,
n.d.).
4. Uncertainty Avoidance
It deals with the manner a society addresses the prediction of
the future. A higher score for uncertainty avoidance on
Hofstede shows that the members of a society depend upon the
current rules and laws to prevent an uncertain situation in the
future.
b. Comparison of the two countries among Hofstede’s
dimensions (Saudi Arabia and Argentina)
Figure 1: Comparison of Saudi Arabia and Argentina
I. How Power Distance applies to Saudi Arabia
The score of power distance for Saudi Arabia is 95. This score
shows that in Saudi Arabia power distribution is linked with the
ranking. It also shows that in Saudi Arabia social status is given
high priority. Power is centralized in the organizations in Saudi
Arabia and the subordinates act upon the orders of their bosses
(Hofstede Insights, n.d.).
II. How Power Distance applies to Argentina
The score on this dimension for Argentina is 49. This core is
quite low as compared to Saudi Arabia. It shows that power is
not centralized in the organizations in Argentina and the
subordinates possess certain degree of authority in making
decisions. In Argentina, European way of leadership is more
prevalent.
III. How Individualism applies to Saudi Arabia
The score on individualism for Saudi Arabia is 25. It means that
in Saudi Arabia collectivism is more common as compared to
individualism. People in Saudi Arabia do not emphasize upon
themselves (Hofstede Insights, n.d.). Instead a greater focus is
placed on collective happiness of the groups. Loyalty towards

13. the groups is given more significance than individual happiness.
IV. How Individualism applies to Argentina
The score on individualism for Argentina is 46 which is quite
high as compared to Saudi Arabia. It represents that Argentina
is an individualist country. Individual happiness is more
important for the people of Argentina as compared to collective
happiness of the groups.
V. How Masculinity applies to Saudi Arabia
The score for masculinity for Saudi Arabia is 60 which is a
quite high score. It indicates that the society is driven by the
success and competition. Saudi Arabia is more inclined towards
assertiveness and achievement. In short, there are more
masculine characteristics in Saudi Arabia (Hofstede Insights,
n.d.).
VI. How Masculinity applies to Argentina
The score on this dimension for Argentina is 56 which is almost
equal to that of Saudi Arabia. It shows that both Argentina and
Saudi Arabia are driven by competition and success. The
conduct of politicians and female managers is masculine. There
exists a strong need to shine and protrude.
VII. How Uncertainty Avoidance applies to Saudi Arabia
The score for uncertainty avoidance for Saudi Arabia is 80.
People like to stick to the existing rules and laws to avoid
uncertainty in the succeeding time. In Saudi Arabia, greater
importance is associated to the traditions and culture. People
are resistance to revolutionary reasoning (Hofstede Insights,
n.d.).
VIII. How Uncertainty Avoidance applies to Argentina
The score on this dimension is high for Argentina, i.e. 86 which
is higher than the score for Saudi Arabia. The rate of corruption
is high in Argentina and people’s need to obey these rules is
low. In addition, the black market is substantial.
B. ETHICS
a. A brief explanation of corruption index
The corruption perception index ranks the countries on the basis
of existence of corruption in their economies. The current

14. accessible ranking is up to 2018. The corruption perception
index is developed through the opinion assessments/surveys of
the business people and experts. This index classifies 180
nations. A total of 13 surveys and experts evaluations were used
to determine public division corruption in these countries
(Transparency International, n.d.). The scores that are assigned
to these nations range from 0 to 100. A higher score on the
index shows lower degree of corruption and a low score on the
index represents higher degree of corruption. An absolute score
of 100 shows there is no existence of corruption in the
particular country.
b. Saudi Arabia’s score compared with the USA’s score
The score for the United States of America on the Corruption
Perception Index is 71 in 2018 (as shown in the figure 2). This
score shows lower level of corruption in the USA. The score for
Saudi Arabia on the index is 49 which is a lower score as
compared to the score of the USA (Transparency International,
n.d.). The lower score exhibits increased level of corruption in
the country.
Figure 2: Corruption Perception Index
c. Argentina’s score compared to the USA’s score
The score for Argentina in 2018 was 40. This score is lower in
comparison to the USA’s score. The lower score of Argentina
shows that there is a higher level of corruption in Argentina.
d. Why are Saudi Arabia and Argentina’s scores different from
USA’s score?
The score for Argentina is different from the USA’s score
because in Argentina, people are less likely to obey the law. As
a result, the level of corruption is high in Argentina. Likewise,
in Saudi Arabia the laws devised for corruption are not
adequately implemented (Transparency International, n.d.).
There is an existence of monarchy in Saudi Arabia that makes it
defenseless against corruption. In the United States, it is quite
opposite to Argentina and Saudi Arabia.

15. e. Comparison with the Hofstede score
The Hofstede’s scores for uncertainty avoidance for Saudi
Arabia and Argentina are 80 and 86 respectively. These scores
show higher levels of corruption in both these countries. It is
identical to the ranking of the two countries on the Corruption
Perception Index.
References
Hofstede Insights. (n.d.). Country comparison. Retrieved from
https://www.hofstede-insights.com/country-
comparison/argentina,saudi-arabia/
Transparency International. (n.d.). Corruption Perceptions Index
2018. Retrieved from https://www.transparency.org/cpi2018