How much control does government exercise over the economy

Imagine that you are an executive with a multinational corporation that wants to open a manufacturing facility in an underdeveloped country. You have been assigned the responsibility of preparing a report on the suitability of a particular country for investment. Your company is concerned with the investment climate in this country, but is equally interested in the political stability, social and cultural environment since it will be making a substantial financial commitment. Your corporation views this is not only an opportunity to make a profit, but also as a humanitarian effort to help improve the standard of living in a lesser-developed country.

Country: Afghanistan

Prepare a detailed report for your Board of Directors that includes the following information:

General Information:

Population of the country (see 1 below for more information.)

Important ethnic or racial groups and divisions

Per capita gross domestic product (see 2 below for more information.)

UN Human Development Index rankings (see 2 below for more information.)

Freedom House scores for political rights and civil liberties (see 3 below for more information.)

The economic position of your country compared to other countries (wealthy, poor, or middle income)

Classification and Structure of Government:

Liberal democracy, illiberal democracy, or authoritarian regime?

Philosophers or thinkers who have influenced the political history and development of the system of government?

Presidential, parliamentary, or other system?

Who is the head of government?

Electoral system: How are legislators selected? How is the executive elected or chosen? How is the bureaucracy staffed?

What is the highest level of the judiciary? Does judicial review exist?

Is your country a federal or unitary system? How are policies administered in your country?

Is there a written constitution? How old is it? Is it considered to be effective? Does it have the support of the people?

How much control does government exercise over the economy?

Competition, Stability, and Civil Society:

Number and strength of political parties?

Major conflicts between parties (liberal, conservative, left-right, or ethnicity, for example)?

Voting behavior—if your country is a democracy, what is the turnout for elections? Is voting compulsory? (See 4 below for more information.)

What are the results of the most recent election? When is the next national election?

Are there any recent political changes?

Major social movements?

Economic Environment:

Suitability of the country for foreign investment?

Government policy toward foreign investment?

Challenges and potential obstacles?

Advantages to foreign investment in this country?