Trade and Investment

  1. Using the website http://globaledge.msu.edu (Links to an external site.), or other web resources, research the trade statistics of both of your countries. Provide the tables and a brief explanation of the trade statistics for each country.

Directions:

  1. Go to http://globaledge.msu.edu (Links to an external site.).
  2. Click on the “Global Insights” tab.
  • Select “By Country”
  1. Click on “Global Comparator.”
  2. Click on “Next” under “Latest data available.”
  3. Click on “Trade and Investment.”
  • Click for the following 5 data observations:
    1. Foreign direct investment, net (BoP, current US$)
    2. Exports of goods and services (current US$)
    3. Imports of goods and services (current US$)
    4. Merchandise imports (current US$)
    5. Merchandise exports (current US$)
  • Click “Next” and then select your two countries (not the US).
  1. Click “Compare”
  2. Please copy the table that appears and place it in your assignment.

Directions continued:

  1. Using the above directions, explain Country 1 (10 points or 2 points per data point) and
  2. Using the above directions, explain Country 2 (10 points or 2 points per data point).
  3. Using the countries you chose in Part A, perform a Google search and site a national comparative advantage each of those countries in the global market. Please reference your work!
    1. Country 1 (5 points) and
    2. Country 2 (5 points).
  4. Explain the firms and the industry that create that comparative advantage.
    1. Country 1 (5 points) and
    2. Country 2 (5 points).

Political Risk (34 points)

  1. Follow the directions below.
    1. Go to the following World Bank webpage, http://info.worldbank.org/governance/wgi/index.aspx#countryReports (Links to an external site.),
    2. Click on “Interactive data access”
    3. Click the tab “GRAPH View”
    4. Select your two countries and read the political risk report for your countries.
    5. Copy and paste the entire table into your project. (If your country is not available, choose another country.) 
    6. Explain the six factors of the World Bank’s Worldwide Governance Indicators. (12 points)
  2. Control of Corruption
  3. Government Effectiveness
  4. Political Stability and Absence of Violence
  5. Rule of Law
  6. Regulatory Quality
  7. Voice and Accountability
  8. Compare and contrast the primary sources of political and legal risk for your countries.
  9. Explain Country 1’s scores (5 points) and
  10. Explain Country 2’s scores (5 points).

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