Countries are ranked on a scale from 0 to 100 percent on six factors.
1. Degree of economic integration (weighting of 10%)
Includes membership in the World Trade Organization, most-favored nation tariffs, correlation to the global market, market concentration, reach of global market research and country risk.
2. Cost of setting up a business (20%)
Includes the costs, steps and time required, as well as financing a business and foreign direct investment.
3. Cost of labor and material (20%)
Includes cost of labor (productivity, compensation, health expenditures, firing costs, minimum wage and size of labor force) and cost of material (natural resource rate of depletion and natural resource rent).
4. Cost of moving goods (20%)
Includes import and export efficiencies, transportation efficiency, logistics performance, liner shipping connectivity and quality of port infrastructure.
5. Less tangible costs (20%)
Includes corruption perception index, international property rights index, inflation, taxes and accounting adaptability.
6. Readiness of the local consumer base (10%)
Includes size of middle class, household consumption, tariff on imports and GDP per capita.
Scores for individual factors were calculated by using the percentage of the maximum for index-based and qualitative criteria. In the 2011 ranking, scores were calculated on a percent-rank basis.
Sources: Bloomberg, CIA World Factbook, Conference Board, Heritage Foundation, International Monetary Fund, International Labor Organization, Transparency International, United Nations, World Bank, World Health Organization and World Trade Organization.<br><br>To see the full ranking as a PDF, click here.
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