1.

A hypothetical company browsed on different area and risk level their business
faced in the different countries. It shows that Vietnam has the lowest risk among
countries. Use the ANOVA and Welch’s ANOVA to determine if significant risk
differences existed among the countries. Are the results different?

Figure 1. Bartlett's test for homogeneity of Bartlett’s test is use to test the
variances
homogeneity of variances. It is the pre-test in

identifying which method will be used either

Kruskal-Wallis or Welch’s ANOVA. Based on

figure 1, it shows that the standard deviation

has an unequal variability and the data is

heteroscedastic, thus, Welch’s ANOVA is used

in comparing the risk level faced by Kenya,

Myanmar, Bangladesh and Vietnam.

Table 1. ANOVA and Welch’s ANOVA Methods

METHOD P-VALUE

ANOVA 0.011066

Welch’s ANOVA 0.09443625

In running the ANOVA and Welch’s ANOVA on the different area and risk

level of hypothetical company faced in different countries, the following results in

Table 1 were obtained. If the p-value is less than the significance level ɑ (alpha) =

0.05, the null hypothesis (H o) shows that there is a significant difference on the
risk exiting among the four (4) countries otherwise, no significant difference was

detected.

Coming from the four (4) Countries-Kenya, Myanmar, Bangladesh and

Vietnam on the risk level data of Hypothetical Company, results found in ANOVA.

The ANOVA test statistic p-value (p=0.011066) reveals that there is a significant

difference in the risk level of Kenya, Myanmar, Bangladesh and Vietnam. An

implication that there is a significant risk differences existed among the four (4)

Countries.

However, Welch’s ANOVA as the confirmatory test shows different results.

Based on the Welch’s ANOVA p-value (p=0.09443625), it is evident that the four

(4) countries by Hypothetical Company were not significantly different with each

other. It implies that the risk level faced in the different countries are just the

same.
 2. Create a matrix that describes the level of risk business confronts countries.

Risk Kenya Myanmar Bangladesh Vietnam

Myanmar rank 134th Vietnam rank 68th that fell

that fell behind 8 in the
Despite of being in the top most ASEAN countries in the
competitive in the East Africa, World Economic
1 Competition Kenya fell behind Ethiopia Forum. The country
according to International has a long way to go
Monetary Fund (IMF) and notwithstanding
improvements in most
measures.
behind 5 in the ASEAN
Based on the SEB Countries in the World
Merchant Banking, Economic Forum.
Bangladesh GDP
decrease by 0.01%

According to Prime
As stated in the World Bangladesh belongs to Minister Nguyen Xuan
Economic Forum, the group of countries Phuc Vietnam’s
According to the World Bank
Myanmar is one of the with the lowest infrastructure is improving
Kenya faces a significant
most pressing issues commercial energy with major projects but
infrastructure financing deficit
2 Infrastructure regarding consumption, flaws in planning and
estimated at $2.1 billion
infrastructure. Lack of underdeveloped slow progress in
annually which constrains
access to electricity, telecommunications construction projects
growth and development.
transportation and according to EIU Country remain bottlenecks to the
communication. Profile. country’s development.

3 Regulation Kenya’s economic freedom
score is 54.7, making its
economy the 129th freest in the
2018 Index with lower scores for
the Government Spending and
Fiscal Health.
Myanmar’s economic Bangladesh’s economic Vietnam’s economic
freedom score is 53.9 freedom score is 55.1, freedom score is 53.1
making its economy making its economy the making its economy the
the 135th freest in the 128th freest in the 2018 141st freest in the 2018
2018 Index with lower index with lower scores index with lower scores
scores for the for the property rights, for the property rights,

Kenya provides Operational
Risk Report that covers four (4)
areas: Labor Market Risk,
4 Operation
Logistics Risk, Trade and
Investment Risk and Crime and work is needed on
Security Risk.
trade, logistics and port
5 Laws Despite of Foreign Investments
Protection Act in Kenya, Foreign
investment in the country
remains relatively weak
considering the size of the
government and its level of
development according to FDI
labor freedom, monetary
government integrity,
Business freedom, labor freedom, government
labor freedom, fiscal
freedom, tax burden and spending and trade
health and investment
trade freedom. freedom.
freedom.
Senior World Bank Although the business in
operations officer said Vietnam is improving all
that Myanmar had Bangladesh is 173rd in the the time, obstacles still
made progress and World Bank’s ease of remain. It includes
become more doing business. There bureaucracy, shipping
transparent. But more were a lack of and custom tax issues,
transparency and have and an opaque legal
supporting foreign significant bureaucratic framework and the
burden slowness of Vietnam’s
operations judicial system.
Myanmar delay the Having sound law and The Law on Enterprise of
long-awaited reform order situation help Vietnam can be
that would open the flourish business. But the considered the first ever
door further to foreign situation in Bangladesh comprehensive set of
investment according has deteriorated over the legal framework that
to Yangon years. Recent drive to addresses corporate
improve the situation has governance in Vietnam
helped but it has done however, despites such
damage to the business efforts, problems always
communities’ confidence still exist when it comes
said Ashek Ishtiak Haq. down to a better and
workable legal framework
for corporate governance,
especially in light of well-
established international
standards.