Top 10 Best Countries for International Expansion

US company expanding to the top 10 international expansion destinations for 2022

International Expansion. Where are Growing U.S. Companies Headed?

Whether companies are looking to see if a product will succeed in a new region, or they need large-scale workforce support beyond their immediate geography, more and more companies are considering international expansion. But where to?

A country’s economic stability, business environment, and market potential are critical factors to consider when evaluating the potential success of businesses in that location. Related: 5 benefits of expanding into new markets

Here are the top 10 best countries for international expansion in 2024:

1. Mexico

2. Canada

3. India

4. Philippines

5. China

6. Ireland

7. Singapore

8. Japan

9. United Kingdom

10. Brazil

International expansion to Mexico in 2022

1. Mexico

Why Expand to Mexico?

  • Proximity to the U.S.
  • Affordable and skilled manufacturing workforce
  • 30% corporate tax rate
  • Stable economy

Located close to the U.S., Mexico has recently become a popular international destination.. According to the World Bank, Mexico’s annual gross domestic product (GDP) was $1.47 trillion in 2022. Mexico is the United States’ largest trade partner, with around $462 billion worth of goods exchanged between the two countries in the past year.

The country’s manufacturing sector is growing, with a young workforce and government promoting foreign investment, offering exciting opportunities.. Mexico’s free trade agreements with the U.S., Canada, and 50 other countries make it good for business. Additionally, Mexico supports a variety of exports such as consumer electronics, vehicles, auto parts, petroleum, and agricultural products. Although Mexico has a highly qualified workforce, it also has a high corporate income tax of 30%.. However, the lower labor costs can balance out higher tax rates, especially in manufacturing.

Over the years, Mexico has become a strong manufacturing center for many U.S. businesses. Mexico’s free trade agreements with the U.S., Canada and 44 other countries make it an easy country to conduct business in. Additionally, Mexico supports a variety of exports such as consumer electronics, vehicles, auto parts, petroleum, and agricultural products.

Although Mexico does have a highly qualified workforce, it also has a high corporate tax rate of 30%. It’s important to keep in mind, however, that the lower labor costs, especially for manufacturing, can offset the higher tax rates.

International expansion to Canada in 2022

2. Canada

Why Expand to Canada?

  • Proximity to the U.S.
  • Highly educated workforce
  • 15% federal corporate tax rate
  • Social familiarity with the U.S.
  • Stable economic growth

Canada has had 10 years of steady economic growth, making it a popular place for businesses worldwide. As a neighboring country to the U.S., Canada provides ample convenience and growth opportunities. When doing business in Canada, it’s important to know that it is a bilingual country. Companies should understand French to avoid confusion when dealing with consumers or suppliers.

Canada ranked 2nd on the 2023 Best Countries ranking by U.S. News. According to the World Bank, Canada’s annual GDP was $2.14 trillion in 2022. This stability, in conjunction with a strong workforce, makes Canada an ideal destination for expansion.

The OECD says 62% of 25- to 34-year-olds in Canada have a high school education, the second highest rate globally. Although the country boasts a skilled workforce, the federal corporate tax rate for businesses is currently 15%. For these reasons, Canada is on our list of top 10 best countries for international expansion.

Related: Top 7 advantages of doing business in Canada

International expansion to India in 2022

3. India

Why Expand to India?

  • World’s largest market for manufactured goods and services
  • 5th largest economy
  • Skilled workforce with focus in technology
  • 25% corporate tax rate, depending on revenue

India is a fast-growing country with the world’s largest democracy, making it a top choice for international expansion.. According to the World Bank, India’s annual GDP was $3.42 trillion in 2022. India has become the fifth largest economy and an important international market for business operations worldwide in recent years.

India’s growth is partly because of relaxed restrictions on foreign investment. India ranks 40 out of 100 in the World Competitiveness Ranking.

Further, India has recently become a central hub for technology support and innovation. As U.S. companies in these industries continue to grow, the demand for fulfillment increases substantially. High-tech companies leverage India’s talent pool to support sectors like telecommunications, information technology, pharmaceuticals, textiles, and engineering.

International expansion to the Philippines in 2022

4. Philippines

Why Expand to the Philippines?

  • Fast-growing region within in ASEAN
  • 3rd largest English-speaking country
  • 95% literacy rate
  • 25% corporate tax rate
  • Highly educated and flexible workforce
  • Popular tourism destination

The Philippines is one of the fastest-growing regions in the Association of Southeast Asian Nations (ASEAN). With tourism fueling economic growth, it is the third-largest English-speaking country in the world. The Philippines, with 100 million people, could be a profitable market for U.S. companies looking to expand globally.

This country also has a highly trainable and well-educated workforce.. The nation has an educated adult population (aged 15 and over) of 96.29%. Additionally, the cost of living here is relatively low, which means employers can pay lower wages for top talent.

Under ASEAN Free Trade Area (AFTA), businesses in the Philippines can trade easily and receive support for manufacturing. The AFTA also facilitates economic integration with both regional and international allies. The corporate tax rate in the Philippines is currently 25%. All these considerations make the Philippines one of the best countries for international expansion.

International expansion to China in 2022

5. China

Why Expand to China?

  • 2nd largest economy in the world
  • Low-cost manufacturing
  • Prominent economic and technological success
  • Standard corporate tax rate of 25% with 13% VAT on most goods and services

China is a popular place for businesses, but its laws and regulations are complex. It can be overwhelming without enough knowledge. For this reason, many businesses open factories or branches in China. The country provides great opportunities for businesses to grow due to its reputation for offering low prices on manufactured goods.

According to the World Bank, China’s annual GDP was $2.14 trillion in 2022. Corporate tax rates in China are 25%, and VAT rates are 13% for most goods and services.

The nation has a stable and growing economy, rivaling the U.S. in GDP and other growth metrics. Their focus on driving STEM programs and creating innovative technology has nurtured a highly skilled working class for businesses. Despite the legal complexities, China is one of the best countries for international expansion today.

Related: Top 10 manufacturing countries in 2023

International expansion to Ireland in 2022

6. Ireland

Why Expand to Ireland?

  • One of the lowest corporate tax rates in Europe at 12.5%
  • World Economic Forum ranks Ireland in the top 15 countries with a skilled workforce
  • The only entirely English-speaking country in the EU
  • Economic flexibility due to Brexit
  • Stable economy

Ireland is a good place for companies to expand because of favorable tax environment, highly skilled labor force, and economic flexibility. According to a report by the American Chamber of Commerce Ireland, 950 American companies in Ireland employ 376,000 people.

The country has a low corporate tax rate of 12.5%. It also has a young and educated workforce. Additionally, it has shown strength during economic downturns.

After Brexit, Ireland is the only English-speaking country in the EU while being the hub of Europe and the U.S. This is another reason for companies to consider Ireland for expansion in 2024.

International expansion to Singapore in 2022

7. Singapore

Why Expand to Singapore?

  • Low corporate tax rate of 17%
  • Highly educated and skilled workforce
  • Almost half the country speaks English
  • Reliable economic growth year over year
  • Ranked 4th in the world as the most competitive economy

With its favorable tax code and consistent and reliable economic growth, Singapore is an ideal country for expansion. Singapore ranks second out of 190 countries on the World Bank’s ease of doing business rankings.

Singapore is a great place for international expansion due to its educated workforce, business-friendly environment, and stable economy. It can meet various needs for businesses looking to expand globally.

International expansion to Japan in 2022

8. Japan

Why Expand to Japan?

  • Highly advanced technological nation
  • Strong employment stability and highly qualified workforce
  • Affordable and skilled manufacturing workforce
  • Bracketed corporate tax rate from 15%-23%

Japan is world-renowned for its advanced technology, transit capabilities, and diligent workforce. When companies expand globally, they often seek Japan for its abundant, educated, hardworking, and skilled talent pool. This fact is significant for businesses to consider the best countries for international expansion.

Japan is one of the world’s largest economies and has a bracket corporate tax structure ranging from 15% to 23.2%. The country ranks 29 out of 190 by the World Bank for business ease. However, owing to the regulations starting a business here can be complicated.

Businesses looking to expand into Japan may require additional knowledge in hiring and establishing administrative procedures. However, this should not deter them from pursuing growth opportunities in this market.

International expansion to the UK in 2022

9. United Kingdom

Why Expand to the United Kingdom?

  • Strong relationship ties to the U.S.
  • 7th largest trading partner for the U.S.
  • The second-largest economy in Europe
  • 25% corporate tax rate

The United Kingdom is a popular destination for many U.S. companies to expand their business internationally. According to the World Bank, the U.K.’s annual GDP was $3.09 trillion in 2022. The U.K. is the second-largest economy among the European countries.

The U.S. Chamber of Commerce says that the U.K. is the seventh largest trading partner of the U.S. It is also the fifth largest export destination for American goods and services. Approximately 42,000 American firms export to the U.K. and over 7,500 have operations there.

The U.K. and the U.S. have a good business relationship, with $758 billion invested in the British market by the U.S.. The U.K. has the second largest workforce for hiring top talent among the European Union countries. However, the U.K. has a relatively high corporate tax rate of 25%.

With a stable economy and a strong, educated workforce, the U.K. is often a stepping stone for global expansion. Because the U.K. has easy access to the rest of Europe and Asia, growth opportunities are plentiful.

Related: Top 6 benefits of doing business in the U.K.

International expansion to Brazil in 2022

10. Brazil

Why Expand to Brazil?

  • 11th largest economy in the world and largest in South America
  • High growth potential for businesses
  • Affordable and skilled manufacturing workforce
  • 34% corporate tax rate
  • Business practices and cultural norms

Brazil is considered a developing country with high growth potential. However, this also means that many aspects of the economy are still developing. The nation’s regulatory environment and investment sphere are volatile, but the eCommerce and the automotive industry consumer market is booming.

Companies expanding to Brazil must understand the country’s tax system and compliance requirements, which can be complex . Brazil is not often included in the Top 10 lists. However, its potential and data indicate that it could become a top country for global business expansion.

Companies entering the Brazilian market should familiarize themselves with the country’s standard business practices and cultural norms. Brazilians believe in doing business with individuals, not companies. So, they like to create good relationships with partners, making business connections more comfortable with time. Understanding local customs can prevent surprises, lower stress, and improve your success in a new international market.

Related: Top 6 countries with the highest corporate tax rates

International Expansion with Global PEO Services

Are you considering the best countries for international expansion but not sure where to start? Have you wondered if setting up a legal entity or using a PEO would be better for your business? Global PEO Services, a Safeguard Global company, provides support throughout the entire business lifecycle, offering staffing, incorporation, PEO/EOR, accounting, HR, payroll, compliance, and M&A services in 170+ countries. For over two decades, we have supplied public, private, and nonprofit organizations of all sizes with integrated growth solutions.

Our experienced global teams understand the complexities of operating across multiple countries and help our clients effectively navigate the nuances of local laws and regulations in every jurisdiction of operation. The outsourcing services we provide simplify day-to-day operations for our clients so they can free up time and resources to focus on their core competencies. Although this post recommended the best countries for international expansion for 2024, we can assist with expanding into any country.