Tuesday, October 18, 2005

CPI - As in Corruption Perceptions Index (Not Consumer Price Index)

In this time of globalization, international investing has become a familiar term. But where do you invest? I'm not going to lie and say that it's an easy task. Perhaps it's best that you consult your investment advisor if you plan to diversify globally. Or maybe you prefer managing your own money and taking your own risks. You could invest in country indexed exchange traded funds. But where do you start? That depends on your risk tolerance level and how much you value safety. For starters, you may want to look at the Corruption Perceptions Index, which is an index of surveys and studies conducted by Transparency International of Berlin, Germany. This CPI ranks countries according to corruption levels (1 to 10 with 10 being least corrupt). The following diagram is one of several sources issued by the organization.

Source: Transparency International


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