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 2019 2019
(D) Weight >>> 0.2 0.2
(E) Country Variable Normalized Weighted Variable Normalized
Singapore $ 65,233.3 1.0000 0.2000 85 1.0000
Japan $ 40,246.9 0.6085 0.1217 73 0.8154
Brinei Darussalam $ 31,086.8 0.4650 0.0930 60 0.6154
Malaysia $ 11,414.8 0.1568 0.0314 53 0.5077
Indonesia $ 4,135.6 0.0427 0.0085 40 0.3077
Philippines $ 3,485.1 0.0325 0.0065 34 0.2154
Viet Nam $ 2,715.3 0.0205 0.0041 37 0.2615
Lao PDR $ 2,534.9 0.0177 0.0035 29 0.1385
Cambodia $ 1,643.1 0.0037 0.0007 20 0.0000
Myanmar $ 1,407.8 0.0000 0.0000 29 0.1385

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

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; Corrupti
relevant to your choice of company and product. Here are the short descriptions of the indicators that have been chosen:

Indicator 1: GDP per Capita, Current US$. Source: World Bank Data (https://data.worldbank.org/indicator/NY.GDP.PCAP.CD).
population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes
without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resou
serves as an easy-to-obtain proxy of both a country's economic development and its consumers' purchasing powe
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the
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 upd
International, "The index, which ranks 180 countries and territories by their perceived levels of public sector corruption acco
100 is very clean. More than two-thirds of countries score below 50 on this year’s [2018] CPI, with an average score of just 4
corrupt countries.
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the
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.GNF
measured as a share of gross domestic product.". We will use trade expressed as percentage of GDP as a proxy for coun
trade are generally more hospitable to foreign direct investment.
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the
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
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 fr
differently: (1) take the highest (maximum) value and subtract your individual variable value; and (2) divide the result by the

Data Normalization: In the process of creating the country ranking, we transform our individual variables in two ways: (1) w
measured as a share of gross domestic product.". We will use trade expressed as percentage of GDP as a proxy for coun
trade are generally more hospitable to foreign direct investment.
A higher number is better; thus, it is normalized as follows: (1) subtract the lowest (minimum) of the ten values from the
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
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 fr
differently: (1) take the highest (maximum) value and subtract your individual variable value; and (2) divide the result by the

Data Normalization: In the process of creating the country ranking, we transform our individual variables in two ways: (1) w
from our individual data and transform it into values on a zero to one scale; and (2) we use weighted averages to combine m
(B) Source: For Indicators 1 through 3, the source of data that you should be using is linked. For your custom variables (Indic

(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 judgm
example, if you believe that the demand for your product is highly driven by consumer income, you may decide to assign a h
variables. Please note that the weights assigned to the five variables must add up to exactly 100% or 1.000; and that the m

(E) Country: You will select ten countries that do not belong to the High-Income Economies group as classified by the World
bank-country-and-lending-groups for more information). Thus, you may use any Low-Income Economies, Lower-Middle Inco

(F) Final Ranking: You will rank your ten candidate countries 1 (highest) through 10 (lowest) based on the results of your Fin
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 docu
10% each; and obtaining final index values that are between 0 and 1 (values that are less than zero or greater than one indic
eliminate some of the most obvious errors.
 2: Corruption Indicator 3: Trade Openness (Trade, % GDP)Indicator 4: Access to electricity (% of populatio
y International CPI The World Bank The World Bank
2019 2016, 2017, 2018 2018
0.2 0.2 0.2
Weighted Variable Normalized Weighted Variable Normalized
0.2000 326.00% 1.0000 0.2000 100 1.0000
0.1631 37.00% 0.0000 0.0000 100 1.0000
0.1231 94.00% 0.1972 0.0394 100 1.0000
0.1015 131.00% 0.3253 0.0651 100 1.0000
0.0615 43.00% 0.0208 0.0042 98.5 0.9555
0.0431 76.00% 0.1349 0.0270 94.9 0.8487
0.0523 208.00% 0.5917 0.1183 100 1.0000
0.0277 75.00% 0.1315 0.0263 97.9 0.9377
0.0000 125.00% 0.3045 0.0609 91.6 0.7507
0.0277 48.00% 0.0381 0.0076 66.3 0.0000

Yes
Yes
Yes

be overwritten.

(GDP per Capital; Corruption; and Trade Openness, % of GDP). You will select two more indicators that should be
that have been chosen:

ndicator/NY.GDP.PCAP.CD). Per World Bank, " GDP per capita is gross domestic product divided by midyear
y plus any product taxes and minus any subsidies not included in the value of the products. It is calculated
radation of natural resources. Data are in current U.S. dollars." This indicator typically matters because it
umers' purchasing power.
of the ten values from the individual variable value; and (2) divide the result by the difference between maximum and

CPI-2018), or the most updated version of the index (https://www.transparency.org/cpi2018). Per Transparency
ublic sector corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and
h an average score of just 43." This indicator typically matters, because it is risky and expensive to do business in

of the ten values from the individual variable value; and (2) divide the result by the difference between maximum and

org/indicator/NE.TRD.GNFS.ZS). Per World Bank, " Trade is the sum of exports and imports of goods and services
of GDP as a proxy for country's openness to trade. This indicator matters because countries that are more open to

of the ten values from the individual variable value; and (2) divide the result by the difference between maximum and

to your company and your product, and you must explain their choice in the narrative that you will provide. You must
dicates average distance from key markets, a lower distance is better. In this case, you will normalize this variable
(2) divide the result by the difference between maximum and minimum values of the variables.

ariables in two ways: (1) we normalize them through feature scaling so that we can remove the units of measurement
 of GDP as a proxy for country's openness to trade. This indicator matters because countries that are more open to

of the ten values from the individual variable value; and (2) divide the result by the difference between maximum and

to your company and your product, and you must explain their choice in the narrative that you will provide. You must

dicates average distance from key markets, a lower distance is better. In this case, you will normalize this variable
(2) divide the result by the difference between maximum and minimum values of the variables.

ariables in two ways: (1) we normalize them through feature scaling so that we can remove the units of measurement
ted averages to combine multiple normalized variables into a single ranking (or index).
our custom variables (Indicators 4 and 5), please provide a web link to the sources of your data.

r for all ten data points.

. You must use your judgment to do so, and you will explain the reasons for using specific weights in your paper. For
ou may decide to assign a higher weight (such as 30%) to GDP per capital, and consequently lower weights to other
0% or 1.000; and that the minimum weight for each variable should be 10%.

p as classified by the World Bank (see https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-

nomies, Lower-Middle Income Economies, or Upper-Middle-Income Economies as your candidates for investment.

d on the results of your Final Index Value. The top two countries will become the subject of further study in the

me of the tasks in this document, such as assigning variable weights that add up to 100% and that are a minimum of
o or greater than one indicate an error). However, keep in mind that these are just basic data checks designed to
 electricity (% of population)
Indicator 5: Electricity production from oil sources (% of total)
World Bank Final
2015 Index (F) Final
0.2 0.2 Value Ranking
Weighted Variable Normalized Weighted
0.2000 0.7 0.0833 0.0167 0.8167 1
0.2000 7.5 0.8929 0.1786 0.6634 2
0.2000 1.0 0.1190 0.0238 0.4793 3
0.2000 1.2 0.1429 0.0286 0.4265 4
0.1911 8.4 1.0000 0.2000 0.4653 5
0.1697 7.1 0.8452 0.1690 0.4154 6
0.2000 0.5 0.0595 0.0119 0.3866 7
0.1875 0.0 0.0000 0.0000 0.2451 8
0.1501 5.2 0.6190 0.1238 0.3356 9
0.0000 0.3 0.0357 0.0071 0.0424 10

d be

ar
ated
se it
mum and

y
rupt and
in

mum and

services
en to

mum and

ou must
ble

urement
en to

mum and

ou must

ble

urement

er. For
other

orld-
ment.

um of
to