Taxonomy of Market Instit

Type of Market
Institution
Credibility Enhancers
Information Analyzers
and advisors

Aggregators and
distributors

Transaction facilitators
Regulators and other
public institutions
Adjudicators

Taxonomy of Market Institutional Infrastructure

Function that It Performs

Third-party certification of the claims by
suppliers or customers
Collect and analyze information on
producers and consumers in a given market
Provide low cost matching and other value
added services for suppliers and customers
through expertise and economies of scale
Provide a platform for exchange of
information, goods and services, provide
support functions for consummating
transactions
Create the appropriate regulatory and policy
framework, and enforce it
Resolve disputes regarding law and private
contracts

Examples in Capital
Markets

frastructure
Examples in
Goods/Product Markets

Examples in Talent
Markets

Sl. No.
I

Question
Political and Social System
Are the countrys politicians accountable to
1 people through democratic form of government?
Are there strong political groups that oppose the
2 ruling party?

3 Do elections take place regularly?

Are the roles of the legislative, executive, and
4 judiciary clearly defined?
Is there federal system(there is elected
5 government at central and state level)?
Are the subnational government allowed to levy
6 taxes?

7 Does the government itself own companies?

Is the CEO of government owned company a
8 government nominee?
Is the CEO of government owned company a
9 professional?
Do government own companies report to
10 ministers for day to day decision?
Do the laws articulate and protect private
11 property rights?
Are the countrys bureaucrats selected through
12 competition?

13 Is there a professional appraisial for bureaucrats?

14 Is the judiciary independent?

Do the courts adjudicate disputes and enforce
15 contracts in a timely and impartial manner?
Do religious, linguistic, regional, and ethnic
16 groups coexist peacefully?
Are there tensions between religious, linguistic,
17 regional, and ethnic groups?

18 Is the media independent?

19 Are newspapers and magazines neutral?

Do newspapers and magazines represent
20 sectarian interests?
Are nongovernmental organizations, civil rights
groups, and environmental groups active in the
21 country?
Do people tolerate corruption in business and
22 government?

23 Does family ties play a role in business?

II

Can strangers be trusted to honor a contract in

24 the country?
Openness
Are the countrys government, media, and people
1 receptive to foreign investment?
Do citizens trust companies and individuals from
2 some parts of the world more than others?
Does the government place restrictions on foreign
3 investment?
Are the restrictions on foreign investment in place
4 to facilitate the growth of domestic companies,

Are those restrictions on foreign investment in

5 place to protect state monopolies
Are those restrictions on foreign investment in
place because people are suspicious of
6 multinationals?
Can a company make greenfield investments and
7 acquire local companies?
Can company break into the market by entering
8 into joint ventures?
Will that company be free to choose partners
9 based purely on economic considerations?
Does the country allow the presence of foreign
intermediaries such as market research and
advertising firms, retailers, media companies,
banks, insurance companies, venture capital
firms, auditing firms, management consulting
10 firms, and educational institutions?
Does it take long time to start a new venture in
11 the country?
Are the governments procedures for permitting
the launch of a wholly foreign-owned business
12 cumbersome and lengthy?
Are there restrictions on portfolio investments by
overseas companies or on dividend repatriation
13 by multinationals?
Does the market drive exchange rates, or does
14 the government control them?
15 Does the government control exchange rates?
Does the government try to maintain a stable
16 exchange rate?
Does government try to favor domestic products
17 over imports by propping up the local currency?
Do the country have high import tariff as
18 compared to other emerging countries?
Would import duties affect that companys ability
to manufacture its products locally versus
19 exporting them from home?
Can a company set up its business anywhere in
20 the country?
If the government restricts the companys
21 location choices, are its motives political?

If the government restricts the companys

location choices, is government inspired by a
22 logical regional development strategy?
Has the country signed free-trade agreements
23 with other nations?
Do free-trade agreements favor investments by
companies from some parts of the world over
24 others?
Does the government allow foreign executives to
25 enter and leave the country freely?
Is it difficult to get work permits for managers and
26 engineers?
Does the country allow its citizens to travel
27 abroad freely?

III

28 Can ideas flow into the country unrestricted?

Are people permitted to debate and accept those
29 ideas?
Product Markets
Can companies easily obtain reliable data on
1 customer tastes and purchase behaviors?
2 Are there cultural barriers to market research?
Do world-class market research firms operate in
3 the country?
Can consumers easily obtain unbiased
information on the quality of the goods and
4 services they want to buy?
Are there independent consumer organizations
5 and publications that provide such information?
Can companies access raw materials and
6 components of good quality?
7 Is there a deep network of suppliers?
Are there firms that assess suppliers quality and
8 reliability?
9 Can companies enforce contracts with suppliers?
Is there good network of connectivity between
different parts(especially remote parts) of country
10 through rail, road and airlines?
Have global logistics companies set up local
11 operations?

12 Do large retail chains exist in the country?

13 Do large retail chains cover the entire country?
14 Do large retail chains cover only the major cities?
15 Do large retail chains reach all consumers?
16 Do large retail chains reach only wealthy ones?
Are there other types of distribution channels,
such as direct-to-consumer channels and discount
retail channels, that deliver products to
17 customers?
Is it difficult for multinationals to collect
18 receivables from local retailers?
19 Does cash dominate transactions?
20 Do consumers use credit cards
21 Can consumers get credit to make purchases?
22 Are data on customer creditworthiness available?
Do consumers have recourse against false claims
23 by companies or defective products and services?
Do companies deliver after-sales service to
24 consumers?
Is it possible to set up a nationwide service
25 network?
26 Are third party service providers reliable?
Are consumers willing to try new products and
27 services?
28 Do they trust goods from local companies?
29 Do they trust goods from foreign companies?
30 Are safety regulations in industries in place?
Are safety regulations are implemented by
31 companies?

IV

32 Are safety regulations enforced?

Labor Markets
Are there adequte number of institution for higher
1 and professional eductaion?
Does the country have a good elementary and
2 secondary education system as well?
3 Do people study and do business in English?
Do people study and do business in another
4 international language(other than english)?
Do people study and do business in a local
5 language?
Are data available to help sort out the quality of
6 the countrys educational institutions?
Can employees move easily from one company to
7 another?
Does the local culture support movement of
8 employee?
Do recruitment agencies facilitate executive
9 mobility?
Are there major postrecruitment-training needs of
10 the people that multinationals hire locally?
11 Is pay for performance a standard practice?
Do executives give more weight to seniority, as
12 opposed to merit, in making promotion decisions?
Would a company be able to enforce employment
13 contracts with senior executives?
Could a company protect itself against executives
14 who leave the firm and then compete against it?
Could a company stop employees from stealing
15 trade secrets and intellectual property?
16 Does the local culture accept foreign managers?
Do the laws allow a firm to transfer locally hired
17 people to another country?
18 Do managers want to stay or leave the nation?
19 Are the rights of workers protected?
20 Are the countrys trade unions strong?
21 Do trade unions defend workers interests?
22 Do trade unions advance a political agenda?

Can companies use stock options and stockbased compensation schemes to motivate
23 employees?
Do the laws and regulations limit a firms ability
24 to restructure, downsize, or shut down?

If a company were to adopt its local rivals or

suppliers business practices, such as the use of
25 child labor, would that tarnish its image overseas?
Capital Markets
Does the banking network extend to the remote
1 areas?
2 Are financial institutions managed well?
Is financial institutions decision making
3 transparent?
Do noneconomic considerations such as family
ties, influence financial institutions' investment
4 decisions?
Can companies raise large amounts of equity
5 capital in the stock market?
6 Is there a market for corporate debt?
7 Does a venture capital industry exist? If so,
Does venture capital industry allow individuals
8 with good ideas to raise funds?
Are sources of information on company
9 performance reliable?
Do the accounting standards and disclosure
regulations permit investors and creditors to
10 monitor company management?
Do independent financial analysts, rating
agencies, and the media offer unbiased
11 information on companies?
Are corporate governance norms and standards
12 at protecting shareholder interests effective?
Are corporate boards independent and
13 empowered?
14 Do corporate boards have independent directors?
Are regulators effective at monitoring the banking
15 industry and stock markets?

Do the courts deal with fraud in a fair (or well)

16 manner?
Do the laws permit companies to engage in
17 hostile takeovers?
Can shareholders organize themselves to remove
18 entrenched managers through proxy fights?
Is there an orderly bankruptcy process that
balances the interests of owners, creditors, and
19 other stakeholders?

Response(Indicate
Yes or No)

Source

Comments

Yes

Russian
Federation
website

Articles published on RFW

No

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

No

Russian
Federation
website

Articles published on RFW

No

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

No

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

No

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Russian
Federation
website

Articles published on RFW

Yes

Google

Companies and foreign

investment journals

Yes

Google

No

Google

Companies and foreign

investment journals
Companies and foreign
investment journals

Google

Companies and foreign

investment journals

No

Companies and foreign

investment journals

No

Google

No

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Companies and foreign

investment journals
Companies and foreign
investment journals

Yes

Google

Companies and foreign

investment journals

No

Google

Market

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Google
No

Google

Yes

Google

Companies and foreign

investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals

Companies and foreign

investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals

No

Google

No

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Yes

Google

Companies and foreign

investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals
Companies and foreign
investment journals

Yes

Euro Monitor International

Euro Monitor 2015
Euro Monitor International
Euro Monitor 2015
Euro Monitor International
Euro Monitor 2015

Yes

Euro Monitor International

Euro Monitor 2015

No
Yes

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes
Yes

Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015

International
International
International
International
International

Euro Monitor International

Euro Monitor 2015
Euro Monitor International
Euro Monitor 2015

Yes
No
Yes
No
No

Yes

Euro Monitor
Euro Monitor 2015
Euro Monitor
Euro Monitor 2015
Euro Monitor
Euro Monitor 2015
Euro Monitor
Euro Monitor 2015
Euro Monitor
Euro Monitor 2015

International

Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015

International

Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015
Euro Monitor
2015

International

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

No

Yes
Yes

Euro Monitor

Euro Monitor
Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes

Euro Monitor

Yes
Yes

Euro Monitor
Euro Monitor

International
International
International
International

International
International
International
International
International

International
International
International
International
International
International
International
International

Yes

Euro Monitor International

Euro Monitor 2015

Yes

NATLEX

Govt. funded institutions

Yes
Yes

NATLEX
NATLEX

Diversified education base

Yes

NATLEX

Russian and German

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

No
Yes

NATLEX
NATLEX

Labour law directives

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

Yes
Stay
Yes
Yes
Yes
No

NATLEX
NATLEX
NATLEX
NATLEX
NATLEX
NATLEX

Labour
Labour
Labour
Labour
Labour
Labour

law
law
law
law
law
law

directives
directives
directives
directives
directives
directives

No

NATLEX

Labour law directives

Yes

NATLEX

Labour law directives

No

NATLEX

Labour law directives

Yes

CNBC

Yes

CNBC

Yes

CNBC

No

CNBC

Yes

CNBC

Yes

CNBC

Capital Market development

report 2014
Capital Market development
report 2014
Capital Market development
report 2014

Yes

CNBC

Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014

Yes

CNBC

Capital Market development

report 2014

No

CNBC

Capital Market development

report 2014

Yes

CNBC

Yes
Yes

No
No
No

CNBC
CNBC

CNBC
CNBC
CNBC

Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014
Capital Market
report 2014

development
development
development
development
development
development

development
development
development
development

Yes

CNBC

No

CNBC

Capital Market development

report 2014
Capital Market development
report 2014

No

CNBC

Capital Market development

report 2014

Yes

CNBC

Capital Market development

report 2014

Statistics
No. of Question in Political and Social System
No. of Yes/Positive Response
Yes Percentage
No. of Question in Openness
No. of Yes/Positive Response
Yes Percentage
No. of Question in Product Market
No. of Yes/Positive Response
Yes Percentage
No. of Question in Labor market
No. of Yes/Positive Response
Yes Percentage
No. of Question in Capital Market
No. of Yes/Positive Response
Yes Percentage
Total No. of Question for Institutional Void
Total No. of Yes/Positive Response
Total Yes Percentage

Value
24
19
79.17%
28
19
67.86%
32
27
84.38%
25
20
80.00%
19
13
68.42%
128
98
76.56%