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» Personal Loan No Credit Check, Online Economics » Management economics » Topics begins with B » BERI index


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The BERI index is provided by the Businesses Environment Risk Intelligence S.A. This enterprise exists since 1966 and has its head office in Friday Harbor, State OF Washington, the USA. The BERI S.A. analyzes meanwhile 140 countries on risks. The analysis is accomplished by experts from different industries. The BERI S.A. possesses besides still another firm committee, which examines the estimates and which actual BERI index arranges. The BERI index is to be seen as a kind hit list of the Investmentfreundlichkeit of different countries. The index is used particularly in view to globalization and internationalization as aid for management decisions. The BERI index is unfortunately not publicly accessible, but must be acquired.

Method

It becomes the arithmetic means from a point system of evaluation (0=nicht acceptable; 4=sehr well) with the Delphi method in such a way specified by expert questionings from different industries (banks, industry) as well as of research institutes calculates. In detail the BERI index consists of the value of the POR index (profit Opportunity Recommendation). This POR index develops again from the sum ORI index (operation Risk index); PRI index (Political Risk index) and R-factor

The ORI index

"… is e.g. a weighted means from (for the moment) 15 different criteria, like political stability; restaurant growth and the From their total evaluation then the results can be read off as follows:

  • 100-71 points: sturdy country, outstanding business climate
  • 70-56 points: moderate risk, some complications in the daily enterprise
  • 55-41 points: high risk, bad business climate for foreign investors
  • 0-40 points: not acceptable

The PRI index

The PRI index is the evaluation of the political risk to evaluate this is with difficulty to objektivieren. The index consists in such a way of the opinions of experts from internal causes political risk, like Fraktionalisierung of political power as well as by languages or groups of peoples. As well as the external causes like the influencing control of great powers and negative influences of regional political groups. As symptoms for political risk social conflicts, terrorism and political murders are seen.

R-factor

The repayment factor in such a way specified represents the repayment risk of a country concerning debt interest, repayment opposite etc. foreign investors in hard currency, e.g. to dollar. These are evaluated in the classes 1-4. Criteria thereby are for example balances of payments, currency reserves, foreign debts.

The POR index

The total evaluation of a country from the sum of the three partial indices is ORI, PRI and R-factor. It is divided into four classes:

1. Country for investments suitably

2. Country suitably for long-term activities with small own capital funds employment

3. Country only suitably for foreign trade

4. Country not for economic suitably

The actual BERI index develops from the order of rank of the examined countries.

Criticism

The BERI index examines only global factors and no industry-specific. Besides it contains subjective judgements, even if these estimates are made by experts. The BERI index is past-oriented and possesses thus only conditioned prognosis strength.

More externally left:

Business Environmental Risk Intelligence S.A.


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