Bloomberg identified the best countries for business based on their overall business, commerce and trade climate. Countries and sovereigns were ranked on the following six weighted factors for a combined score from zero to 100:
1. Degree of economic integration (weighting of 10%)
Includes membership in the World Trade Organization, most-favored nation tariffs, co-dependence with the global market, market concentration and reach of global market research.
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 & material (20%)
Includes cost of labor (productivity, compensation, health expenditures 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, various taxation concerns 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 each factor were calculated using a percentage of the maximum for index-based and qualitative criteria and a percentage rank for the quantitative criteria. Of the 214 countries and sovereigns evaluated, 157 had sufficient data to be ranked. The top 50 are displayed.
SOURCES: Bloomberg, CIA World Factbook, Eurostat, Heritage Foundation, International Monetary Fund, International Labor Organization, Organisation for Economic Co-operation and Development, Transparency International, World Bank, World Health Organization and others.