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I remember from the old CM games that the relative strength of countries was weighted from 20-1. I assume that the PA of regens is pegged to their country weighting, and hence, you never see a world-class centre-back emerging from Bhutan.
My questions is whether a country's weighting changes after international results. If, for example, I manage China and take them to successive quarter-finals. Will China's rating improve? Will their next crop of regens be better? Will their league become more attractive to a better class of players? Or will the game assume that the improvement of the national side is an aberration, and leave the weighting as is?
Can a country improve? 
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