How to Choose the Right Country for Global Business Expansion

Expanding overseas can be difficult and complex. But this is part of what makes it worthwhile: if it were easy, all of your competitors would be doing it. By embracing the challenge, you might be able to put yourself at a considerable advantage. But before getting started, you’ll want to be sure that you’re choosing the right country.

But on what basis might you make this decision? There are a few factors to consider.

Market Demand and Fit

If you’re going to try and sell a product or service in a new country, then you’ll want to be reasonably sure that there’s untapped demand for it there. Think about how much local competition there is, and whether local consumers might be drawn to your offering.

It might be that there’s a specific local problem that can only be solved by your business. Or, the market in question might be saturated. If you’re going to try and sell, say, olive oil in Italy, then you’ll want to be reasonably sure that your product offers something truly new and worthwhile.

Economic and Political Stability

Some countries are stable, politically and economically. Others might be prone to severe disruption. In the latter case, international trade can present a serious risk. If your supply chain runs through an unreliable state, then local political events might disrupt your operation considerably. Consumer spending also tends to be higher, and more sustainable, in stable economies.

Ease of Doing Business and Legal Environment

In different jurisdictions, the cost of doing business can vary markedly. You’ll need to think about what special permissions you’ll need to obtain, and what labour laws you’ll need to abide by.

In this sense, your choice of country might be influenced by the nature of your business. If you’re a tech firm looking to set up a research lab, for example, then laws around IP protection might be of particular concern.

Logistics, Infrastructure, and Language

When you have different parts of your business situated in different territories, you’ll need to be sure that they can interact with one another frictionlessly. Think about time zone disparities, and the reliability of local internet services. The local language might also make a difference, which gives English-speaking countries a natural advantage.

Certain businesses might also benefit from clear shipping channels, and reduced financial barriers. This is where money transfer for business might be a special concern. Fortunately, there are specialised services designed to ease transactions for foreign business.

Costs and Taxation

In different countries, you’ll face different costs. These might come from taxes and operational costs; they might be mitigated by subsidies designed to attract foreign investment. Make sure that you’ve weighed these costs carefully. In some cases, the UK’s trade agreements might help to make a given country more attractive. For example, the recently signed deal with India might draw firms to that part of the world.

Local Partnerships and Cultural Alignment

If you’re doing business in an unfamiliar culture, then you might find it difficult to win the trust of the locals, and get your brand recognised. Partnering with local consultants and distributors can help you benefit from their familiarity, and help you to avoid costly misteps.