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Conduits of Capital

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Price Levels<br />

UBS<br />

http://www.ubs.com/1/e/<br />

wealthmanagement/wealth_management_<br />

research/prices_earnings.html<br />

R 2 = 0.149 City Based Public Sector Influence = Medium Private Sector Influence = Low<br />

This survey compares purchasing power in the world’s major cities. It has three main measures – price levels and wage levels:<br />

The ‘Price levels’ measure ranks cities according to cost <strong>of</strong> living adjusted for exchange rates. It compares the prices <strong>of</strong> a standardised basket <strong>of</strong> goods<br />

and services, comprising 122 items based on a “common currency.”<br />

The ‘Wage levels’ measure compares the earnings <strong>of</strong> workers across cities. It provides a gross wage comparison (used for GFCI) and a net wage<br />

comparison, using New York as the base city. The index covers 14 occupations that represent a cross section <strong>of</strong> the work force in the industrial and<br />

service sectors.<br />

World Competitiveness Scoreboard<br />

IMD<br />

http://www.imd.ch/research/publications/<br />

wcy/competitiveness_scoreboard.cfmue<br />

R2 = 0.305 Country Based Public Sector Influence = Medium Private Sector Influence = Medium<br />

This scoreboard ranks 59 economies into a competitiveness scoreboard based on 331 various criteria divided into 4 broad sub-groups:<br />

Economic Performance measures size, growth, wealth and forecasts for the domestic economy, international trade, international investment,<br />

employment and price levels; Government Efficiency measures business legislation in terms <strong>of</strong> openness, competition and labour regulations, the<br />

institutional framework, fiscal policy, public finance and societal framework; Business Efficiency reflects business productivity, efficiency, management<br />

practices, attitudes and values, financial management, bank and stock market efficiency as well as costs, relations and availability <strong>of</strong> skills in the<br />

labour market; Infrastructure measures basic, scientific and technological infrastructure as well as health, environment and education. A more detailed<br />

look into the index’s constituent parts may help policymakers better understand where changes can be made to improve performance.<br />

FDI Confidence Index<br />

AT Kearney<br />

http://www.atkearney.com/research-studies/<br />

foreign-direct-investment-confidence-index<br />

R 2 = 0.247 Country Based Public Sector Influence = Medium Private Sector Influence = Medium<br />

This index is developed using data from an AT Kearney survey <strong>of</strong> senior executives. The respondents represent leading global corporations from 44<br />

different countries spanning 17 industry sectors across all continents that together account for over 75% <strong>of</strong> global FDI flows. The index is a weighted<br />

average <strong>of</strong> the number <strong>of</strong> high medium and low responses to questions about the likelihood <strong>of</strong> direct investment in a market over the next three years.<br />

Heightened confidence in a country implies more inflow <strong>of</strong> capital and with it better economic prospects, financial stability and lower interest rates—all<br />

good news for the financial industry.<br />

Global Intellectual Property Index Taylor Wessing http://www.taylorwessing.com/ipindex/<br />

R2 = 0.093 Country Based Public Sector Influence = Medium Private Sector Influence = Medium<br />

This index, calculated by Z/Yen, measure the competitiveness <strong>of</strong> 36 jurisdictions in the areas <strong>of</strong> trademarks, patents, copyrights, designs and personal<br />

data. Within each <strong>of</strong> these areas, it examines the practicability <strong>of</strong> obtaining, exploiting, enforcing and attacking intellectual property.<br />

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