Coursera: Managerial Economics and Business Analysis Capstone

Country Ranking Analysis Template

Please see instructions below before working on this document!

(A) Indicator >>> Indicator 1: GDP per Capita, Current US$ Indicator 2: Corruption
(B) Source The World Bank Transparency International CPI
(C) Data Year 2018 2018
(D) Weight >>> 0.3 0.2
(E) Country Variable Normalized Weighted Variable Normalized Weighted
Ireland $ 78,806.43 1.0000 0.3000 73 0.7321 0.1464
Denmark $ 61,350.35 0.7727 0.2318 88 1.0000 0.2000
Canada $ 46,232.99 0.5758 0.1728 81 0.8750 0.1750
Qatar $ 68,793.78 0.8696 0.2609 62 0.5357 0.1071
Germany $ 47,603.03 0.5937 0.1781 80 0.8571 0.1714
Jordan $ 4,241.79 0.0291 0.0087 49 0.3036 0.0607
Ukraine $ 3,095.17 0.0141 0.0042 32 0.0000 0.0000
Indonesia $ 3,893.60 0.0245 0.0074 38 0.1071 0.0214
India $ 2,009.98 0.0000 0.0000 41 0.1607 0.0321
Trinidad and Tobago $ 17,129.91 0.1969 0.0591 41 0.1607 0.0321

(G) Data checks: Do the total weights of the five variables add up to 1.000 or 100%? Yes
Is each variable's weight at least 10% of the total index value? Yes
Is the final index value for each country between 0.000 and 1.000? Yes

Instructions:

You should fill in only the areas highlighted in blue. Areas filled in with other colors should not be overwritten.

(A) Indicators: You are required to use a total of 5 (five) indicators. Three are pre-selected for you (GDP per Capital; Corruptio
two more indicators that should be relevant to your choice of company and product. Here are the short descriptions of the in

Indicator 1: GDP per Capita, Current US$. Source: World Bank Data (https://data.worldbank.org/indicator/NY.GDP.PCAP.CD). P
product divided by midyear population. GDP is the sum of gross value added by all resident producers in the economy plus a
included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for d
Data are in current U.S. dollars." This indicator typically matters because it serves as an easy-to-obtain proxy of both a countr
purchasing power.
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the in
by the difference between maximum and minimum values of the variables. The formula is pre-filled for you.

Indicator 2: Corruption. Source: Transparency International, Corruption Perceptions Index 2018 (CPI-2018), or the most upda
(https://www.transparency.org/cpi2018). Per Transparency International, "The index, which ranks 180 countries and territori
corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.
on this year’s [2018] CPI, with an average score of just 43." This indicator typically matters, because it is risky and expensive t
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the in
by the difference between maximum and minimum values of the variables. The formula is pre-filled for you.

Indicator 3: Trade Openness (Trade, % of GDP). Source: World Bank Data (https://data.worldbank.org/indicator/NE.TRD.GNFS
and imports of goods and services measured as a share of gross domestic product.". We will use trade expressed as percenta
trade. This indicator matters because countries that are more open to trade are generally more hospitable to foreign direct in
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the in
by the difference between maximum and minimum values of the variables. The formula is pre-filled for you.

Indicators 4 and 5: You will choose these indicators. You must choose indicators that are relevant to your company and your p
narrative that you will provide. You must also document their sources, including web address of the data source.
For some indicators, a lower number will be better. For example, if you select a variable that indicates average distance fro
Indicator 3: Trade Openness (Trade, % of GDP). Source: World Bank Data (https://data.worldbank.org/indicator/NE.TRD.GNFS
and imports of goods and services measured as a share of gross domestic product.". We will use trade expressed as percenta
trade. This indicator matters because countries that are more open to trade are generally more hospitable to foreign direct in
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the in
by the difference between maximum and minimum values of the variables. The formula is pre-filled for you.

Indicators 4 and 5: You will choose these indicators. You must choose indicators that are relevant to your company and your p
narrative that you will provide. You must also document their sources, including web address of the data source.
For some indicators, a lower number will be better. For example, if you select a variable that indicates average distance fro
case, you will normalize this variable differently: (1) take the highest (maximum) value and subtract your individual variable v
between maximum and minimum values of the variables.

Data Normalization: In the process of creating the country ranking, we transform our individual variables in two ways: (1) we
we can remove the units of measurement from our individual data and transform it into values on a zero to one scale; and (2
normalized variables into a single ranking (or index).

(B) Source: For Indicators 1 through 3, the source of data that you should be using is linked. For your custom variables (Indica
sources of your data.

(C) Data Year: Please indicate the year for which your data is pulled. You should use the same year for all ten data points.

(D) Weight: This is a weighted index, and you have to assign a weight to each of the five variables. You must use your judgme
using specific weights in your paper. For example, if you believe that the demand for your product is highly driven by consum
weight (such as 30%) to GDP per capital, and consequently lower weights to other variables. Please note that the weights as
exactly 100% or 1.000; and that the minimum weight for each variable should be 10%.

(E) Country: You will select ten countries that do not belong to the High-Income Economies group as classified by the World
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups for more infor
Economies, Lower-Middle Income Economies, or Upper-Middle-Income Economies as your candidates for investment.

(F) Final Ranking: You will rank your ten candidate countries 1 (highest) through 10 (lowest) based on the results of your Fina
the subject of further study in the macroeconomic and macroeconomic analyses component of the capstone.

(G) Data Checks: These formulas in Excel help you check whether you've correctly completed some of the tasks in this docum
up to 100% and that are a minimum of 10% each; and obtaining final index values that are between 0 and 1 (values that are l
error). However, keep in mind that these are just basic data checks designed to eliminate some of the most obvious errors.
 Indicator 3: Trade Openness (Trade, % GDP)
Indicator 4: Ease of doing business score
Indicator 5: Profit tax (% of commercial profits)
The World Bank
https://data.worldbank.org/indicator/IC.BUS.DFRN.XQ?view=map
https://data.worldbank.org/indicator/IC.TAX.PRFT.CP.ZS?end=2019&name_desc=
2018 2018 2018
0.2 0.2 0.1
Variable Normalized Weighted Variable Normalized Weighted Variable Normalized
211.51 1.0000 0.2000 79.58 0.7621 0.1524 12.4 0.5194
105.24 0.4976 0.0995 85.29 1.0000 0.2000 17.1 0.3372
66.22 0.3131 0.0626 79.64 0.7646 0.1529 8 0.6899
87.99 0.4160 0.0832 68.67 0.3075 0.0615 0 1.0000
88.67 0.4192 0.0838 79.71 0.7675 0.1535 23.2 0.1008
90.2 0.4265 0.0853 68.97 0.3200 0.0640 10.5 0.5930
99.02 0.4682 0.0936 70.21 0.3717 0.0743 10.2 0.6047
43.02 0.2034 0.0407 69.58 0.3454 0.0691 18.1 0.2984
43.38 0.2051 0.0410 71.05 0.4067 0.0813 21.6 0.1628
0 0.0000 0.0000 61.29 0.0000 0.0000 25.8 0.0000

be overwritten.

(GDP per Capital; Corruption; and Trade Openness, % of GDP). You will select
short descriptions of the indicators that have been chosen:

ndicator/NY.GDP.PCAP.CD). Per World Bank, "GDP per capita is gross domestic

ucers in the economy plus any product taxes and minus any subsidies not
of fabricated assets or for depletion and degradation of natural resources.
btain proxy of both a country's economic development and its consumers'
of the ten values from the individual variable value; and (2) divide the result
ed for you.

CPI-2018), or the most updated version of the index

180 countries and territories by their perceived levels of public sector
rrupt and 100 is very clean. More than two-thirds of countries score below 50
se it is risky and expensive to do business in corrupt countries.
of the ten values from the individual variable value; and (2) divide the result
ed for you.

org/indicator/NE.TRD.GNFS.ZS). Per World Bank, "Trade is the sum of exports

rade expressed as percentage of GDP as a proxy for country's openness to
ospitable to foreign direct investment.
of the ten values from the individual variable value; and (2) divide the result
ed for you.

to your company and your product, and you must explain their choice in the
he data source.
dicates average distance from key markets, a lower distance is better. In this
org/indicator/NE.TRD.GNFS.ZS). Per World Bank, "Trade is the sum of exports
rade expressed as percentage of GDP as a proxy for country's openness to
ospitable to foreign direct investment.
of the ten values from the individual variable value; and (2) divide the result
ed for you.

to your company and your product, and you must explain their choice in the
he data source.
dicates average distance from key markets, a lower distance is better. In this
ct your individual variable value; and (2) divide the result by the difference

ariables in two ways: (1) we normalize them through feature scaling so that
n a zero to one scale; and (2) we use weighted averages to combine multiple

our custom variables (Indicators 4 and 5), please provide a web link to the

r for all ten data points.

. You must use your judgment to do so, and you will explain the reasons for
t is highly driven by consumer income, you may decide to assign a higher
se note that the weights assigned to the five variables must add up to

p as classified by the World Bank (see

nding-groups for more information). Thus, you may use any Low-Income
dates for investment.

d on the results of your Final Index Value. The top two countries will become
he capstone.

me of the tasks in this document, such as assigning variable weights that add
en 0 and 1 (values that are less than zero or greater than one indicate an
the most obvious errors.
t tax (% of commercial profits)
T.CP.ZS?end=2019&name_desc=false&start=2005&view=chart

Final
0.1 Index (F) Final
Weighted Value Ranking
0.0519 0.8508 1
0.0337 0.7650 2
0.0690 0.6323 3
0.1000 0.6127 4
0.0101 0.5970 5
0.0593 0.2780 6
0.0605 0.2327 7
0.0298 0.1684 8
0.0163 0.1708 9
0.0000 0.0912 10