Sample Term Paper
Pakistan Business Freedom:
The liberty to conduct a business is relatively well protected in Pakistan under the regulatory environment. It takes almost 24 days to start a business as compared to the 38 days of the world average. The cost related to licensing a business is comparatively high (The Heritage Foundation, 2009).
Czech Republic Financial Freedom:
The financial sector of Czech Republic is one of the most advanced setup in Europe. Restrictions on foreign banks are very low and major insurance companies are very competitive which helps in developing the financial sector of the country (The Heritage Foundation, 2009).
South Africa Tourism:
Tourism is South Africa’s most important tool of generating revenues. Tourists from different parts of the world come to South Africa to plan their trip and a major reason for selecting this region is because of its affordability natural beauty and adventure (The Heritage Foundation, 2009).
Key features in ranking index:
The key features in ranking index include business freedom, investment freedom and trade freedom.
- Business freedom:
The methodology that is used to calculate business freedom is a quantitative measure. This indicator takes into account the ability to start a business, operate a business and close a business. It also shows the efficiency of a government towards the regulation of these business processes. The factors on which the ranking is based on includes starting a business in terms of procedures, time, cost, minimum capital, operating a license, number of days to obtain license and finally closing a business. All these factors are kept in mind while preparing a score for that particular country. The score lies between 0-100 where 0 represents the minimum amount of business freedom and 100 represents the most convincing business environment. Each of these factors is considered before providing a final score. All these factors are computed individually after which an average is taken which represents that country’s freedom in business (Doing Business, 2009).
- Investment freedom:
This factor inspects the policy that particular country has towards the free flow of investment. The investment includes both the foreign investment FDI’s as well as the country’s internal capital flow. The investment freedom factor shows impact that investment has over that country’s economics. The things that are examined very closely are the country’s investment laws and procedures, the governments’ interest towards foreign investments, treatment towards the investors, access to foreign exchange, equitable treatment with the foreign investment against the domestic investors etc. The criterion which is used in this regard also ranges between 0-100 where 100 is the highest point in which the host country treats the foreign investment same as domestic investment and no restrictions are implied over the foreign investor. Similarly the ranking goes down with restrictions getting more intense.
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