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The Corruption Perceptions Index (CPI) is the indicator to reflect the level of corruption among countries or territories. The ranks and scores are widely used to evaluate the abuse of the public power. The index is measured by numerous institutions from a variety of assessment and surveys of corruption. The scale of scores is from 0 to 100, to be specific, 0 means a country has a high level of corruption and 100 means a country is very clean. Both Australia and Chile have a steady ranking between 2010 and 2012. In 2012, Australia scores 85 and ranks 7th; Chile scores 72 and ranks 20th. The two countries both have a higher CPI; however, the CPI of Australia is higher than that of Chile obviously.

There are some reasons related to the different ranking. The Australian government provides essential and adequate training to officers and officials about the severe consequences of corruption, which is an effective measure to prevent corruption. In addition, Australia established Corruption and Crime Commission (CCC) which is the leading anti-corruption body in Australia. CCC supervises public sector agencies and officials to comply rules and laws, thus avoid corruption. Chile has a better reputation of transparency and higher CPI than any other countries in Latin America. This because Chilean government attempts to improve anti-corruption and transparency. In 2009, Chilean transparency law goes into effect, and it requires all public sectors to publish information on incomes and expenditures timely. However, it still needs to strength and complete the related laws and regulations. The lower CPI may cause lower long-term economic growth and reduce FDI. Besides, corruptions could weak performance of public sector and increase the abuse of public power or resources.

According to the AMB Country Risk Report (2013), the political risk of Australia is very low and the

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