can be evaluated by estimating the annual income earned per citizen. The WorldBank, which lends money for improvements in underdeveloped nations, dividescountries into four income categories:World Bank Group, “Country Classification,”Data: Country and Lending Groups,-classifications/country-and-lending-groups(accessed August 22, 2011).•High income—$12,276 or higher (United States, Germany, Japan)•Upper-middle income—$3,976 to $12,275 (China, South Africa, Mexico)•Lower-middle income—$1,006 to $3,975 (Vietnam, Philippines, India)•Low income—$1,005 or less (Kenya, Bangladesh, Haiti)Note that that even though a country has a low annual income per citizen, it canstill be an attractive place for doing business. India, for example, is a lower-middle-income country, yet it has a population of a billion, and a segment of thatpopulation is well educated—an appealing feature for many business initiatives.The long-term goal of many countries is to move up the economic developmentladder. Some factors conducive to economic growth include a reliable bankingsystem, a strong stock market, and government policies to encourage investmentand competition while discouraging corruption. It’s also important that a countryhave a stronginfrastructure—its systems of communications (telephone, Internet,television, newspapers), transportation (roads, railways, airports), energy (gas andelectricity, power plants), and social facilities (schools, hospitals). These basicsystems will help countries attract foreign investors, which can be crucial toeconomic development.Currency Valuations and Exchange RatesIf every nation used the same currency, international trade and travel would be alot easier. Unfortunately, this is not the case. There are about 175 currencies in theworld: Some you’ve heard of, such as the British pound; others are likely unknownto you, such as themanat, the official currency of Azerbaijan, a small nation inSouthwest Asia. Let’s pretend you suddenly find yourself in Azerbaijan and all youhave with you is a credit card (which none of the restaurants or hotels will take)and U.S. dollars (which no one wants either). How can you get some Azerbaijanimanats so you can buy a good meal and check into a hotel? If it’s during the day,you’re in luck. Head to the closest bank and ask someone there who speaks Englishto exchange your dollars for Azerbaijan manats. If you give the bank clerk $300 (allof your travel money), don’t expect to get back 300 manats; the two currencies arenot equal. To determine how much Azerbaijan money you’ll get in exchange foryour $300, the bank clerk will look up the day’s foreignexchange rate22—whichtells you how much one currency is worthrelative to another currency. If today were22. Value of one currency relativeto another.