In recent years the welfare of the economy has been in turmoil, however we are currently in a state of recovery and the future of the economy looks bright. The factor that essentially determines the strength of a country’s economy is called Gross Domestic Product (GDP). This is essentially the value of each country’s economy based on export sales, cost of imports, consumer spending, government spending and FDI. When it comes to the promotion of a country, the major factor that can improve a country’s economy is FDI, which makes you wonder about the significance of a FDI ranking. It is important to increase the flow on money and investment in any country’s economy in order to build an economy and see it function effectively. The majority of FDI is based on confidence in the market and this level of confidence effect each country’s FDI ranking. In the current economic crisis it is important to maximise FDI in order to help to recover the state of the economy, however due to the risk of investments falling through at this point of economic recovery, businesses and investors are more cautious about how they invest and the amount of their investments. Whilst it is important for a country to rely on their domestic goods and sales it is just as important to receive FDI, as the potential for export sales and investment from abroad is far greater, meaning that a country’s position in an FDI ranking is very important. On the other hand, each country’s position in an FDI ranking doesn’t take into account the size of the country and the relative level of FDI compared to the potential for FDI. Therefore it’s important to look on a more broad scale and look at a Country Branding Ranking." (Tom)
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