Country Analysis for International Business Expansion

INB301: International Business, Section 03

Submitted by

Name ID
Abdus Sakib 1710194
Alan Talukder 1821949
Tasneem Kashem 1711131
Mohammad Abrar Ahmed 1710416
Abdullah Sheikh Mohammad 1710748
Mohammad Alvin Imran Haque 1830141

Submitted to

Mr Hasan Md. Mahmood Ul Haque

Lecturer, Department of International Business

School of Business, IUB

Submitted on

Tuesday, 7th April, 2020

Acknowledgement
This assignment is due for the course coded INB301 and named “International Businees”. We
would, first and foremost, like to thank our course instructor, Mr. Hasan Md. Mahmood Ul
Haque Sir, for firstly, teaching us the know-how of the science behind International Business and
how its application is widespread in the world of corporations, and secondly, giving us the
opportunity to work on this specific assignment to examine our take-away from this course. We
would also like to thank the course instructor for taking his time to go through our report and
giving his valuable feedback about it in advance. It has been a privilege to be learning from him.
We would also like to thank each and everyone who has put an effort behind this assignment’s
completion. We would also like to thank you, the reader and we sincerely hope that this report
offers what you are looking for.

Attestation
We understand the nature of plagiarism, and we are aware of the University’s policy on this. We
certify that this is an original work done by our group with help from sources referenced in-text
and later on in an APA format thus following an internationally accepted academic guideline of
using others work, research, and / or software etc.

Regards,

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Table of Contents

Acknowledgement............................................................................................................................i
Attestation.........................................................................................................................................i
Table of Contents............................................................................................................................ii
Introduction......................................................................................................................................1
International Business Expansion................................................................................................1
Country Analysis.............................................................................................................................2
Singapore.....................................................................................................................................2
Global Investment Ranking.....................................................................................................2
Corporate Tax Rate..................................................................................................................3
GDP Forecasts.........................................................................................................................3
Number of days required to start a Business...........................................................................4
FDI Confidence Index.............................................................................................................4
Contextual Factors...................................................................................................................5
Strategic & Policy Factors.......................................................................................................5
New Zealand................................................................................................................................7
Global Investment Ranking.....................................................................................................7
Corporate Tax Rate..................................................................................................................7
GDP Forecast...........................................................................................................................8
Number of days required to start a business............................................................................8
FDI Confidence Index.............................................................................................................9
Contextual Factors...................................................................................................................9
Strategic & Policy Factors.....................................................................................................10
Canada.......................................................................................................................................11
Global Investments Ranking..................................................................................................11
Corporate Tax Rate................................................................................................................11
GDP Forecasts.......................................................................................................................12
FDI Competitive Index..........................................................................................................12

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 Contextual Factors.................................................................................................................13
Strategic & Policy Factors.....................................................................................................14
Switzerland................................................................................................................................15
Global Investment Ranking...................................................................................................15
Corporate Tax Rate................................................................................................................15
GDP Forecasts.......................................................................................................................15
Number of Days required to start a Business........................................................................15
FDI Confidence Index...........................................................................................................16
Contextual Factors.................................................................................................................16
Strategic & Policy Factors.....................................................................................................17
Brazil..........................................................................................................................................19
Global Investment Ranking...................................................................................................19
Corporate Tax Rate................................................................................................................19
GDP Forecasts.......................................................................................................................19
Number of Days to start a Business.......................................................................................20
FDI Confidence Index...........................................................................................................20
Contextual Factors.................................................................................................................20
Strategic & Policy Factors.....................................................................................................22
Comparative Competitive Advantages..........................................................................................23
Singapore...................................................................................................................................23
Geographic Location.............................................................................................................23
Quality Leadership.................................................................................................................23
Talent Management...............................................................................................................24
New Zealand..............................................................................................................................24
Location Demography...........................................................................................................24
Ease of Entry..........................................................................................................................24
Good Governance & Legal Systems......................................................................................24
Canada.......................................................................................................................................25
Skilled Workforce..................................................................................................................25
Affluent Economy.................................................................................................................25
Big Consumer Base...............................................................................................................25

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 Rich in Resources..................................................................................................................25
Free Trade..............................................................................................................................25
Switzerland................................................................................................................................26
Pro-Business Governance and Law Enforcement.................................................................26
Central European Location....................................................................................................26
Skilled and Flexible Workforce.............................................................................................26
Developed Business Fields....................................................................................................26
Brazil..........................................................................................................................................26
Very Big Market....................................................................................................................26
Rich in Resources..................................................................................................................26
Huge Workforce....................................................................................................................26
Conclusion.....................................................................................................................................27
References and Citations...............................................................................................................28

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Introduction
This report is a comparative analysis of five different countries from five different continents in
terms of international business expansion. The countries in comparison are Singapore, New
Zealand, Canada, Switzerland, and Brazil. They were analyzed on a few key grounds such as
their respective positions in the Global Investment Ranking, the Global Competitiveness Index,
their respective tax rates, GDP forecasts, number of days required to start a business, FDI
confidence index, and other contextual and strategic factors.

International Business Expansion

International Business Expansion or Internationalization is referred to the process of expanding a
business from the domestic market into international markets across the world. In an increasingly
globalized world, capturing markets overseas is easier than ever and the benefits as appealing as
it can be. For starters, companies get to operate in foreign markets and generate more revenue
and increase overall brand value, which in very simple terms, increase the consolidated size of
the business and profit margin. Additionally, companies get to be closer to their customers,
which allow them to understand the market without a third party intervention.
Internationalization helps with cost reductions due to economies of scale and the availability of
comparative advantages in production in some countries compared to others. These expansions
often create jobs in the markets they are entering, and help with overall growth of the economy.
This is why governments often compete to attract more investors and business to expand into
their economy.

However, critics claim that there are several disadvantages to this rapidly increasing
phenomenon as well. Often times, while expanding to other markets, there is an amount of job
losses in the domestic markets as well. Also, multinational enterprises (hereinafter referred to as
MNEs) are in nature hard to compete with for smaller local companies, which often leads to
liquidity of competing local small and medium enterprises (hereinafter referred to as SMEs).

Common barriers to international expansion include the cultural and language barrier which is
often hard to cope with and costs and the hassle involving in international expansion. It has been
estimated that if two countries have a common language, trade between them will be 42 percent
greater than between two countries that do not (The Economist, 2012a). Even though there are
varieties of other factors affecting strategies revolving international expansion, for example the
current ongoing outbreak of the virus Covid-19, companies when coming up with these
strategies, think of a few common information as factors to consider. This report is an example
of such practices. We consider five countries, analyze aforementioned important factors and rank
the top three countries we choose to expand internationally.

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Country Analysis
Singapore

The Republic of Singapore is a sovereign city-state and island country located in maritime
Southeast Asia. The capital of Singapore is Singapore city, and their official languages are
English, Malay, Chinese and Tamil. The currency of Singapore is Singapore Dollar (S$) SGD.
They have parliamentary constitutional republic government.

Global Investment Ranking

Singapore is ranks first in the entire world in the Index of Economic Freedom with an overall
score of 89.4. Its overall score is well above both the regional and world averages. In Singapore,
Property rights are recognized and enforced effectively. Judicial processes are procedurally
competent, fair, and reliable. Singapore is considered one of the world’s least corrupt countries.
The standard personal income tax rate is 15 percent, and the top corporate tax is 16.5 percent.
The tax system is simple and efficient. The overall tax burden equals 14.1 percent of total
domestic income. Government spending has amounted to 17.2 percent of the country’s output
(GDP) over the past three years, and the budget surplus have averaged 4.7 percent of GDP.
Singapore is ranked as one of the world’s most business friendly country. In 2019, the
government introduced measure to decrease the ratio of foreign workers to local employees,
threatening labor supply in the service sector. The government funds generous housing,
transport, and health care subsidy programs and influences other prices through regulation and
state-linked enterprises. The total value of exports and imports of goods and services equals
326.2 percent of GDP. The average applied tariff rate is 0.1 percent, and 182 non-tariff measures
are in force. Foreign and domestic businesses are treated equally under the law, and nearly all
sectors are open to 100 percent foreign ownership.

Additionally, Singapore ranked first in the Global Competitive Index 2019 with an overall score
of 84.8.

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Corporate Tax Rate

Singapore’s current headline tax rate is capped at 17%. However, with the tax exemption and
incentive programs offered by Singapore government, the effective tax rate for companies can be
significantly lower.

GDP Forecasts

The Gross Domestic Product (GDP) in Singapore contracted 10.60% in the first quarter of 2020
over the previous quarter. Singapore’s economy shrank 2.2 percent year on year in the first
quarter of 2020, reversing the 1.0 percent growth in the previous period and compared with
market expectations of a 1.5 percent decline preliminary data showed.

The GDP in Singapore was worth 382 billion US dollar in 2019 according to official data from
the World Bank. And the GDP value of Singapore represents 0.32 percent of the world economy.
GDP in Singapore is expected to reach 370.00 USD Billion by the end of 2020, according to
Trading Economics global macro models.

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Number of days required to start a Business

Time required to start a business in Singapore will take 1.5 days according to World Bank of
collection of development indicators. Which is one of the smallest time in the entire world.

FDI Confidence Index

According to the FDI Confidence Index from A.T. Kearney, the latest value from 2019 is 1.65
index points which ranks it at number 10. Investors are very optimistic about Singapore’s
economic outlook, which may have propelled the country regaining its place in the top 10 after a
one year hiatus.

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Contextual Factors

1. Population- 5.6 million

2. Natural Resources- Singapore is based on mainly renewable resources like Biomass
which includes woods, leaves, animal waste, crops, bones, and scales. Biomass is stored
solar energy that can convert electricity or fuel.
3. Geography- Singapore is a very small, heavily urbanized, island city-state in Southeast
Asia, located at the end of Malayan Peninsula between Malaysia and Indonesia.
4. Topography- Singapore’s main territory is a diamond-shaped island, although its
territory includes surrounding smaller islands. The farthest outlying island is Pedra
Branca.
5. Climate- Singapore is one and a half degrees north of the equator. Singapore’s climate is
classified as Tropical rainforest climate, with no true distinct seasons.
6. Culture- Culture of Singapore is a combination of Asian and European cultures.
Influenced by Malay, South Asian, East Asian and Eurasian cultures. Their official
language is English, Malay, Chinese and Tamil.
7. Legal framework- The legal system of Singapore is based on the English common law
system. Major areas of laws- particularly administrative law, contract law, equity and
trust law, property law and tort law.
8. State of Technological Preparedness- Singapore ranks as one of the top Asian location
for technological readiness.
9. Ethics & Governance-Singapore has published a draft AI governance framework that is
non sector-specific. And formed an Advisory Council on the ethical use of AI and data to
provide guidance to industry.
10. International & Regional integration- Singapore is among the top performers in Asia-
Pacific Regional Cooperation and Integration index, a new measure of progress of
regional cooperation and integration in the region.
11. Modes of Entry available-Licensing, Franchising, Joint ventures.

Strategic & Policy Factors

1. GNP- in Singapore is expected to reach 465332.00 SGD Million by the end of 2020,
GNP 460724.70 SGD Million in 2019. GDP Growth- 10.6 percent. Monetary and
Fiscal policy-Monetary policy in Singapore is centered on the exchange rate and
Singapore practices a prudent fiscal policy.
2. Consumer Price Index- CPI in Singapore is increased to 100.30 points in February from
100.20 points in January of 2020.
3. Inflation Rate- Singapore’s annual inflation rate fell to 0.3% in February 2020 from
0.8% in the prior month. This was the lowest inflation rate since July last year.

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4. Unemployment-Singapore’s unemployment rate 2.3% in 2019 and expected to 2.6% by
the end of this quarter. Literacy- for adult male population is 98.66% and for adult
female population is 95.09%.
5. Income Distribution-income for the bulk of household rose by up to 5.6% while the top
10% saw their income grow just 0.4%.
6. Exchange Rate-1.56 Singapore dollar to US dollar. Balance of payment- 3530.8 million
Singapore dollar.
7. Tariffs & Quotas- more than 99% of all imports in Singapore enter the country duty
free. Singapore levies 7% tax on goods and service. For dutiable goods, the taxable value
for GST is calculated based on CIF (Cost, Insurance and freight) value plus all duties and
other charges. In the case of non-dutiable goods, GST will be based on CIF value plus
any commission.

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New Zealand
New Zealand is a sovereign island country is in the southwestern Pacific Ocean. The capital of
New Zealand is Wellington, and their official languages are Maori and English. The currency of
New Zealand is New Zealand Dollar.

Global Investment Ranking

New Zealand ranks third in the index of economic freedom with an overall score of 84.1. It has
the most recognized and enforced property rights. New Zealand is one of the lowest level of
corruption in the whole world. New Zealand’s top personal tax rate is 33% for those who earns
more than $70000NZ. Companies and corporate tax are fixed at 28% and there is another tax
(GST). Goods and services which has a flat tax rate of 15%. New Zealand ranks among to the
top five in the world for ease of doing business. New Zealand has laid out a welcome mat for
FDI offering incentive, reward, and a stable business environment. The value of export and
import equals 28.13% of GDP. The average tariff rate is 2.2%.Most businesses require no
government approval. Overseas companies carrying on business in New Zealand and large New
Zealand companies that have 25% or greater foreign ownership must register and file audited
accounts with the Registrar of Companies. These accounts are filed on public record

According to the Global Competitiveness Index 2019, New Zealand has a score of 76.7 which
ranks it at number 19.

Corporate Tax Rate

New Zealand local companies are taxed on their worldwide income and foreign companies are
taxed on their New Zealand’s income. New Zealand corporate income tax rate is 28%.

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GDP Forecast

The Gross Domestic Product in New Zealand was worth of 215 billion US in year of 2019.The
value of GDP in New Zealand is 0.18% of the world economy. It’s expected to reach 219 billion
US Dollar by the end of 2020. The new projected trend of GDP is around 225 billion US Dollar
with in 2021 and within 2022 it will be 230 billion US Dollar. New Zealand’s economy
advanced 1.8 percent year-on-year in fourth quarter of 2019, easing from a 2.3 percent expansion
in the previous period and matching market expectations.

Number of days required to start a business

It takes approximately one day to start a business in New Zealand making it one of the easiest
countries to expand into.

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FDI Confidence Index

According to the FDI Confidence Index from A.T. Kearney, the latest value from 2019 is 1.52
index points which ranks it at number 20.

Contextual Factors

1. Population: New Zealand population is 4.8 million.

2. Natural resources: are gold, silver, natural gas, iron ore, coal, limestone .
3. Geography: New Zealand is mostly mountainous or steep hills and volcanic peaks in the
central North Island and fiords in the far south west.
4. Culture: New Zealand is basically a western culture influenced by the unique
environment and geographic isolation of the island and the culture input of the
indigenous Maori people and various waves of multi ethnic migration which followed the
British colonization of New Zealand.
5. Legal framework: New Zealand is based on three related principles: parliamentary
sovereignty; the rule of law and the separation of powers. As a former British colony, the
New Zealand legal system is heavily based on the English law, and remains similar in
many respects.

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 6. State of Technological Preparedness: New Zealand's tech sector is diverse
and advanced. It's a breeding ground for innovation and competes successfully on the
world stage. The industry is a major and growing business for New Zealand growing
12% last year.
7. Ethics and Governance: For the government legal system the steak holder have to
maintain the ethics of business.
8. International and Regional integration: New Zealand has a deep intelligence alliance
with Australia, the UK, the USA, and Canada.
9. Modes of Entry available: Licensing, Franchising, Joint venture.

Strategic & Policy Factors

1. GNP: New Zealand’s Gross National Product was reported at 54.005 USD billion in Dec
2019. This records an increase from the previous number of 51.148 billion USD for Sep
2019. New Zealand’s Gross National Product data is updated quarterly, averaging 20.456
billion USD from Jun 1987 to Dec 2019,with 131 observations. The data reached an all
time high of 54.005billion USD in Dec 2019 and a record low of 8.799 Billion USD in
Jun 1987.
2. Consumer Price Index: Consumer Price Index CPI in New Zealand increased to 1044
points in the fourth quarter of 2019 from 1039 points in the third quarter of 2019.
3. Inflation Rate: New Zealand is expected to be 2.10 percent by the end of this quarter,
according to Trading Economics global macro models and analyst expectations. Looking
forward, we estimate Inflation Rate in New Zealand to stand at 1.70 in 12 month time.
4. Unemployment-New Zealand's unemployment rate fell to 4 percent in the last quarter of
2019 from 4.2 percent in the previous period and below market expectations of 4.2
percent. The number of unemployed people dropped by 3 thousand to 111 thousand,
driven by 3,000 fewer unemployed women. The jobless rate for women declined to 4.3
percent from 4.5 percent in the prior period; while for men was steady at 3.8 percent.
Meantime, the underutilization rate went down to 10 percent from 10.4 percent in the
third quarter, its lowest level since the June 2008 quarter; and the labor force
participation rate decreased to 70.1 percent from 70.4 percent.
5. Exchange Rate-1.70 New Zealand dollar is equivalent to one US dollar.
6. Tariffs and Quotas- imported goods will attract no tariff duty at all as most goods in the
Tariff are duty free although GST will still remain payable. But a 5% and 10% tariff duty
applies to some goods.

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Canada
Canada is one of the world’s top trading nations which follows British pattern of parliamentary
democracy. The capital of Canada is Ottawa. The major languages of Canada are English &
French, and both are their official language. Their monetary unit is Canadian Dollars.

Global Investments Ranking

According to Index of Economic Freedom, Canada is ranked 9th with a freedom score of 78.2.
Canada is ranked first among 32 countries in the America region and its overall score is well
above the regional and world averages.

Moreover, according to the Competitiveness Index, Canada is ranked 14 th in the world. This is
based on 98 variables, organized in 12 pillars with the most important including institutions,
infrastructure, ICT adoption, macroeconomic stability, health, labor market, financial system,
market size, business dynamism and innovation capability.

Corporate Tax Rate

Corporate Tax Rate in Canada is expected to reach 26.50 percent by the end of 2020, according
to Trading Economics global macro models and analysts expectations.

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GDP Forecasts

The GDP of Canada expanded by 1.5% in December 2019, following a growth of 1.6% in the
previous quarter. Real GDP growth data in Canada is updated quarterly. The GDP in Canada was
worth 1740 Billion USD in 2019 according to World Bank. The GDP is expected to reach
US$1832.49 Billion by the end of 2020 according to the IMF.

FDI Competitive Index

According to the FDI Confidence Index from A.T. Kearney, the latest value from 2019 is 1.87
index points which ranks Canada at number 3.

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Contextual Factors

1. Population: 37.66 Million

2. Natural Resources: Canada hold vast oil reserves and is also a major exporter of energy,
food and minerals.
3. Geography: Canada is a country in the northern part of North America. Its ten provinces
and three territories extend from the Atlantic to the Pacific and northward into the Arctic
Ocean, covering 9.98 million square kilometers making it the world's second-largest
country by total area. Its southern border with the United States, stretching 8,891
kilometers, is the world's longest bi-national land border.
4. Topography: Canada’s topography is dominated by the Canadian Shield, an ice-scoured
area of Precambrian rocks surrounding Hudson Bay and covering half the country.
5. Climate: Due to great latitudinal extent, Canada has a wide variety of climates. Ocean
currents play an important role, with both the warm waters of the Gulf Stream in the
Atlantic and the Alaska current in the Pacific.
6. Culture: Canadian culture is quite enriched with a mixture of British, French and
American influences. Since the mid-20th century, economic growth has provided
Canadians with greater means for practicing and enjoying the arts. Canada is so diverse
historically & ethnically that there is no single national culture.
7. Legal framework: The legal framework related to Government of Canada is comprised
of policies & directives, Statutes & regulations, trade agreements and a challenge
process. The code of conduct for procurement reflects basic principal & expectations
with respect to federal procurement in Canada.

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 8. State of Technological Preparedness: Canada is technologically advanced and
continues to innovate in terms of Technology.
9. Ethics & Governance: Their ethics code and governance for the public comprises of
five core values which are: Respect for Democracy, Respect for People, Integrity,
Stewardship, Excellence
10. International & Regional integration: Canada has also undergone a fundamental shift
in its economic and foreign policy priorities since the late 1980s that has brought it closer
to the hemisphere. Canada has become one of the most active and prominent countries in
promoting a Free Trade Area of the Americas (FTAA).(Government of Canada, 2020)
11. Modes of Entry available: Exporting, Licensing, Franchising, Strategic Alliance,
Acquisition, Greenfield Ventures, & FDI.

Strategic & Policy Factors

1. GNP- in Singapore is expected to reach 465332.00 SGD Million by the end of 2020,
GNP 460724.70 SGD Million in 2019. GDP Growth- 10.6 percent. Monetary and
Fiscal policy-Monetary policy in Singapore is centered on the exchange rate and
Singapore practices a prudent fiscal policy.
2. Consumer Price Index- CPI in Singapore is increased to 100.30 points in February from
100.20 points in January of 2020.
3. Inflation Rate- Singapore’s annual inflation rate fell to 0.3% in February 2020 from
0.8% in the prior month. This was the lowest inflation rate since July last year.
4. Unemployment-Singapore’s unemployment rate 2.3% in 2019 and expected to 2.6% by
the end of this quarter. Literacy- for adult male population is 98.66% and for adult
female population is 95.09%.
5. Income Distribution-income for the bulk of household rose by up to 5.6% while the top
10% saw their income grow just 0.4%.
6. Exchange Rate-1.56 Singapore dollar to US dollar. Balance of payment- 3530.8 million
Singapore dollar.
7. Tariffs & Quotas- more than 99% of all imports in Singapore enter the country duty
free. Singapore levies 7% tax on goods and service. For dutiable goods, the taxable value
for GST is calculated based on CIF (Cost, Insurance and freight) value plus all duties and
other charges. In the case of non-dutiable goods, GST will be based on CIF value plus
any commission.

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Switzerland
Officially, the Swiss Confederation is one of the most developed countries in the world, with the
highest nominal wealth per adult  and the eighth-highest per capita gross domestic product. The
country does not have an official capital but the de facto capital city is Bern. The official
languages include German, French, Italian, and Romansh.

Global Investment Ranking

According to Index of Economic Freedom, Switzerland is ranked 5th with a freedom score of
82.0. Switzerland is ranked first among all countries in the European continent and its overall
score is well above the regional and world averages.

Moreover, in the Global Competitiveness Index, Switzerland is ranked 5th in the world with an
overall score of 82.3. This is based on 98 variables, organized in 12 pillars with the most
important including institutions, infrastructure, ICT adoption, macroeconomic stability, health,
labor market, financial system, market size, business dynamism and innovation capability

Corporate Tax Rate

The Corporate Tax Rate in Switzerland stands at 18 percent in 2020.

GDP Forecasts

The Switzerland GDP Growth Rate is projected to trend around 0.60 percent in 2021 and 0.50
percent in 2022, according to the econometric models (Switzerland GDP Growth Rate| Calendar,
2020).

Number of Days required to start a Business

The minimum days required to start a business in Switzerland is estimated to be around 10-20
days (The World Bank, 2020). This is much more than countries of this type of ranking.

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FDI Confidence Index

Switzerland has a 1.59/3 in the FDI confidence index according to the Kearney FDI Confidence
Index 2019. However, they have moved down from 7th place to 13th in 2019 as there’s political
and economic instability (Stephens et al., 2020).

Contextual Factors

1. Population: 8.57 million (Switzerland Worldometer, 2020)

2. Natural Resources: Natural resources include hydropower potential, timber, salt. Water
power is the chief natural resource of Switzerland Mineral resources is not plentiful in
Switzerland. Granite, limestone, other building stones, and salt are the only abundant
mineral resources with commercial value. Small deposits of iron and manganese ores also
are found. About 11 percent of Switzerland’s land is used for agriculture, while another
30 percent is covered by forests. Central to the country’s famous tourism industry, one of
Switzerland’s most important revenue sources (Natural Resources, Land and Resources,
Switzerland, n.d.).
3. Geography: Switzerland is a landlocked country bordered by Italy to the south, France to
the west, Germany to the north, and Austria and Liechtenstein to the east. It is
geographically divided among the Swiss Plateau, the Alps, and the Jura, spanning a total
area of 41,285 km2, and land area of 39,997 km2.
4. Topography: Switzerland is divided into three natural topographical regions: the Jura
Mountains in the northwest, rising between Switzerland and eastern France; the Alps in
the south, covering three-fifths of the country's total area; and the central Swiss plateau.
Switzerland has 1,484 lakes, more than 12,900 smaller bodies of water, and many
waterfalls (Topography - Switzerland - area, farming, 2016).

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 5. Climate: Switzerland is located within a temperate climatic zone. At latitude of 47
North, the climate is moderate and generally agreeable. Temperatures depend largely on
altitude, with averages 5°C lower for each additional 300 m of elevation (Climate of the
World: Switzerland | weatheronline.co.uk, 2020).
6. Culture: Swiss culture is characterized by diversity, which is reflected in a wide range of
traditional customs. Three of Europe’s main languages are its official language.
7. Legal framework: The main source of the law is the Constitution of 1848, amended
completely in 1874 and 2000.The legal framework in Switzerland's economic field is
governed by the Constitution which monitors fundamental rights such as property rights,
the right to pursue gainful activities, trade freedom, and it establishes how competencies
are shared between the Federal Council, cantonal and municipal administrations (The
Swiss Company Act, 2010). Business development is governed and regulated by the
Company Act in Switzerland. The formation of a company in Switzerland falls under the
Civil Code, specifically the Swiss Code of Obligations.
8. State of Technological Preparedness: Switzerland consistently holds a leading position
in international comparisons of innovation performance. Historical, economic, and
political circumstances have shaped the country's unique innovation system. Recent and
future controversial aspects of Swiss innovation policy are discussed, and changes in
innovation policy that might become necessary are explored (J.M. Bauer, 2017).
Switzerland has ranked number one in the Change Readiness Index (CRI) compiled by
consulting firm KPMG (Szilvana Spett, 2020).
9. Ethics & Governance: In 2018 Transparency International ranked Switzerland as the
3rd least corrupt country in the world (Corruption in Switzerland, 2020). Switzerland is a
semi-direct democratic federal republic. The federal legislative power is vested in the two
chambers of the Federal Assembly, the National Council and the Council of States
(Corporate Governance in Switzerland, 2020)
10. International & Regional integration: Switzerland is part of the European Union, and
has been in healthy trade relations with most countries of the world thanks to its specialty
products.
11. Modes of Entry available: Most preferred way is by working directly with Swiss
importers. Other ways are Exporting, Licensing, Franchising, Strategic Alliance,
Acquisition, Greenfield Ventures, & FDI.

Strategic & Policy Factors

1. GNP: Switzerland's Gross National Product was reported at 177.350 USD bn in Dec
2019. This records an increase from the previous number of 175.141 USD bn for Sep
2019 (Switzerland Gross National Product, 2020).
2. GDP Growth: 0.9 percent. (2019)
3. Monetary and Fiscal policy: The primary objective of Swiss monetary policy is price
stability. Their intermediate target is the monetary base, which is composed of banknotes

17
 in circulation and giro deposits (demand deposits held with the SNB by commercial
banks). The primary operating target is the level of giro deposits
4. Consumer Price Index (CPI): CPI in Switzerland now stands at 101.59.
5. Inflation Rate: The inflation rate, average consumer prices of Switzerland stands at
0.6% (Switzerland and the IMF, 2020).
6. Unemployment: 4.87 percent (Switzerland -Statista, 2019).
7. Literacy: The adult literacy rate is the percentage of people ages 15 and above who can
both read and write with understanding a short simple statement about their everyday life.
Switzerland’s literacy rate for 2019 was 99.00% (Switzerland Literacy Rate 1990-2020,
2019).
8. Income Distribution: Switzerland has a GINI index of 29.5%. The GDP per capita of
Switzerland in 2019 was $82,294, $231 higher than in 2018, it was $82,525 (Product,
2020)
9. Exchange Rate: 1 Swiss Franc equals to 1.02 US dollar.
10. Balance of payment: Credit $27.7 billion and Debit $15.3 billion.
11. Tariffs & Quotas: Switzerland’s tariff rates for 2017 were 1.68%, a 0.37% increase
from 2016 (Switzerland Tariff Rates 1990-2020, 2018).

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Brazil
The country of Brazil, most famous for its role in FIFA and in the football world, is not as caught
up to international trade as the other countries in this list. The capital city of the country is
Brasilia. The currency is Brazilian Real since 1994. The official language of Brazil is
Portuguese.

Global Investment Ranking

According to Index of Economic Freedom 2020, Brazil ranks 144 th with a freedom score of 53.7.
Brazil is ranked 25th among 32 countries in the Americas region, and its overall score remains
well below the regional and world averages. Brazil’s score this year marks an encouraging
turnaround after 15 years of steadily declining Index scores. It means that Brazilians can begin to
hope cautiously that their economy will continue on an upward trajectory and escape eventually
from the mostly un-free category.

Moreover, according to the Global Competitiveness Index, Brazil is ranked as the 71st most
competitive country in the world with a score of 60.9. This is based on 98 variables, organized in
12 pillars with the most important including institutions, infrastructure, ICT adoption,
macroeconomic stability, health, labor market, financial system, market size, business dynamism
and innovation capability.

Corporate Tax Rate

Brazil has a corporate tax rate of 15 percent. However, this figure increases much more as the
taxation system in Brazil is highly complex with other taxes such as federal, state, and municipal
taxes.

GDP Forecasts

Brazil’s real GDP growth is forecasted to be 2.167% in December 2020 according to IMF. This
means the country is expected to reach USD 2150 Billion by the end of 2020.

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Number of Days to start a Business

According to the International Finance Corporation, which serves as the private equity arm of the
World Bank, it takes approximately 130 days, $900 and 43 documents to launch a new business
in Brazil. Enlist the required help, including the services of a Brazilian attorney if you wish to
incorporate in the country.

FDI Confidence Index

According to the FDI Confidence Index from A.T. Kearney, the latest value for Brazil in 2019 is
1.37. This is a decrease from the last year’s 1.52

Contextual Factors

1. Population: 210 million (Brazil Worldometer, 2020)

2. Natural Resources: Bauxite, Gold, Iron ore, Manganese, Nickel, Phosphates, Platinum,
Tin, Clay, Rare earth elements, Uranium, Petroleum, Hydropower and Timber
3. Geography: Switzerland is a landlocked country bordered by Italy to the south, France to
the west, Germany to the north, and Austria and Liechtenstein to the east. It is
geographically divided among the Swiss Plateau, the Alps, and the Jura, spanning a total
area of 41,285 km2, and land area of 39,997 km2. Brazil is bordered by
Argentina, Bolivia, Colombia, Guyana, Paraguay, Peru, Suriname, Uruguay, Venezuela,
and France (overseas department of France, French Guiana

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4. Topography: The country of Brazil occupies roughly half of South America, bordering
the Atlantic Ocean. Brazil covers a total area of 8,514,215 km2 (3,287,357 sq mi) which
includes 8,456,510 km2 (3,265,080 sq mi) of land and 55,455 km2 (21,411 sq mi) of
water. The highest point in Brazil is Pico da Neblina at 2,994 m (9,823 ft).
5. Climate: In general, Brazil is a year-round destination with temperatures rarely dips
below 20°C (68°F), apart from in the mountains and southern regions. The climate varies
from hot and dry in the arid interior to humid and sticky in the tropical rainforests of the
Amazon jungle.
6. Culture: The culture of Brazil is primarily Western, but presents a very diverse nature
showing that an ethnic and cultural mixing occurred in the colonial period involving
mostly Indigenous people of the coastal and most accessible riverine areas, Portuguese
people and African people. In the late 19th and early 20th centuries, together with further
waves of Portuguese colonization, Italians, Spaniards, Germans, Austrians, Levantine
Arabs (Syrians and Lebanese), Armenians, Japanese, Chinese, Koreans, Greeks, Poles,
Helvetians, Ukrainians and Russian Brazilians or Russians settled in Brazil, playing an
important role in its culture as it started to shape a multicultural and multiethnic society.
7. Legal framework: Each Brazilian province has its own legal system, and there is a
system of courts to settle disputes between provinces. The legal system is based on
Roman codes. The civil code, inspired previously by the Napoleonic code, is nowadays
closer to the Italian code.
8. State of Technological Preparedness: Brazil is not very advanced in terms of
technology in most cases and lacks readiness similar to most of its neighboring countries.
9. Ethics & Governance: Corruption is common problem for Brazil as it is not (despite
different levels) in other developing countries – even the most developed ones. However,
the proportion and the broad impact of recent corruption scandals have given a boost to
major reforms in the landscape of corporate governance. Maybe it is too early to predict
any concrete results, but there are clear signs that misconduct is becoming less and less
tolerated.
10. International & Regional integration: In the last few years, analyses regarding regional
integration have varied ranging from open optimism to deep pessimism. These
considerations have been influenced by the ongoing political and economic crisis of the
European Union model and the setbacks endured by other arrangements worldwide. As
well, these evaluations are influenced by the deadlock of multilateral talks in general,
either in the trade or in the diplomatic arena, as represented by the lack of progress and
reform of known institutions such as the United Nations (UN), the International
Monetary Fund (IMF) and the World Trade Organization (WTO). In addition, most
countries are choosing bilateral agreements over multilateral ones due to the low political
costs involved in talks and to the more limited scope of these pacts. Nevertheless, these
crossroads cannot be considered as representative of general trends regarding regional
integration, either of their success or of dilemmas.
11. Modes of Entry available: Licensing, Franchising, Joint ventures.
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Strategic & Policy Factors

1. GNP: $1915.28 billion (2018)

2. GDP Growth: 1.0 percent. (2017)
3. Monetary and Fiscal policy: Monetary and fiscal institutions have played a decisive role
in the stabilization of the Brazilian economy since the mid-1990s. In Brazil institutional
reforms were predominantly made in response to a succession of internal and,
particularly, external crises. Brazil's experience of designing and managing institutions to
this end is likely to be of interest to other emerging and low- or middle-income
economies.
4. Consumer Price Index (CPI): Brazil's Consumer Price Index (CPI) growth was
measured at 4.2 % YoY in Jan 2020, compared with a rate of 4.3 % in the previous
month. Brazil's Consumer Price Index growth data is updated monthly, available from
Dec 1980 to Jan 2020, with an average number of 8.1 % YoY.
5. Inflation Rate: The annual inflation rate in Brazil fell to 4.0 percent in February 2020
from 4.19 percent in January but above market expectations of 3.9 percent. Prices slowed
for food & beverages (5.12% vs. 5.83% in January); housing (3.41% vs. 4.21%) and
clothing (1.01% vs. 1.42%). In contrast, cost advanced further for transport (4% vs.
3.88%); personal expenses (4.53% vs. 4.4%); health (5.05% vs. 4.81%); education
(4.96% vs. 4.79%); and communication (1.36% vs. 1.15%).
6. Unemployment: Brazil unemployment rate for 2018 was 12.54%, a 0.28% decline from
2017. Brazil unemployment rate for 2017 was 12.83%, a 1.22% increase from 2016.
Brazil unemployment rate for 2016 was 11.61%, a 3.17% increase from 2015. Brazil
unemployment rate for 2015 was 8.44%, a 1.77% increase from 2014.
7. Exchange Rate: 1 Brazilian Real is equal to 0.19 USD.
8. Balance of payment: Credit $27.7 billion and Debit $15.3 billion.
9. Tariffs & Quotas: Brazilian import duty rates depends regionally and range from 10
percent to 35 percent.

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Comparative Competitive Advantages
Singapore
When you think about Singapore, one thing that comes to your mind is its transformation from a
third world country to a first world developed nation. When Singapore gained independence, it
had little or nothing to develop. The time saw the city-state with minimal natural resources, little
space to accommodate the immigrant population, and no support from neighboring nations.
Today, Singapore has a great economy and has turned into a developed nation. Singapore stands
on the pinnacle of the world along with top-tier cities like New York and London. Its economy
dwarfs many Asian, African and European economies.

Those who know the nation well can say that there’s much more to Singapore’s competitive
advantage than these metrics. Several qualities, right from its geographical advantage and
leadership quality to strategic abilities, make Singapore stand at par with world leaders.

Geographic Location
Singapore’s location played an important role in its transformation from the third world country
to first world economy. As mentioned above, the city-state had little to go on with during
independence. A city state with a harbor has the advantage of marine trade. Singapore is located
right in the middle of the trade route between Europe and the Far East. The excellent harbor not
only allowed ships to anchor safely but also posed a convenient centre for supply and exchange
of good and information.

Singapore took advantage of these opportunities and encouraged free trade with the nations.
Today, the nation’s port is the busiest and also acts beneficial for new age businesses like e-
commerce. It contributes a great portion (7% as of 2015) to the nation’s GDP and acts as a
competitive advantage.

Quality Leadership
The credit for Singapore’s success undoubtedly goes to the nation’s government. When it had
nothing Singapore was blessed with a leader like Lee Kuan Yew. He was Singapore’s first prime
minister and is credited with the engineering of city-state’s economy. He took globalization as an
approach to bring Singapore out of bad times.

Singapore’s economy is based on strong morals of pragmatism, meritocracy, and honesty. The
city has practiced equality and put the nation in the hands of the one who deserves it and not
riling the class or heirs only. The government is non-corrupt and practices a fair system. This
bought stability to Singapore’s economy and attracted various businesses to the nations.

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Talent Management
One of the biggest advantages is human talent. Singapore has long recognized the importance of
developing and nurturing talent. A 2017 Global Talent Competitive Index compiled by INSEAD
saw Singapore on the 2nd position for attracting and retaining talent. Talent management has been
a problem for businesses around the world.

It welcomes talent from all around the world and believes in cooperation of government and
organizations with education systems to remain competitive. This mindset can bring in positive
changes within industries and the economy. Additionally, it can help leaders look at competitors
as partners and turn perceived threats into opportunities..

New Zealand
Location Demography

New Zealand's regions exhibit marked spatial variations in firm formation, with the urban areas
being less entrepreneurial than the rest of the country, when the analysis controls for the varying
sizes of regions. With a greater presence of firm births in manufacturing industries and business
services in more peripheral and less urbanized areas, especially on the South Island of New
Zealand, the country has huge opportunities for new businesses.

Ease of Entry

The approximate time to start a business in New Zealand is 1 day. This makes it one of the
easiest countries to start a business in. It also has very relaxed attitudes towards foreign
investments and welcomes investors from almost all countries of the world.

Good Governance & Legal Systems

New Zealand is officially the least corrupt country in the world (The Business Insider, 2020).
The Government is one of the most corruption-free, and property rights are properly maintained
and enforced. This makes New Zealand a haven for businesses that like to innovate.

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Canada
Skilled Workforce

Canada has one of the most advanced and skilled workforce with a very high literacy rate, and
countless MNEs operating there. Along with being skilled and well trained,, the workforce is
quite big as well, compared to New Zealand, Hong Kong, or Switzerland.

Affluent Economy

The Canadian economy is one of the more stable economies therefore, reducing risks in most
types of investments or business expansion. The huge service and manufacturing industries
assures that the economy is experienced and seasoned compared to many others.

Big Consumer Base

With a population of 37+ million, an unemployment rate of record low sitting at 5.8% the lowest
its been since 1976, the country has a very appealing consumer base. The minimum wage is
increasing and more and more consumers in Canada are financially stable. Goods exports are up
due to Canada’s large size, natural resources are plentiful and a great bolster to the economy.
Companies expanding to Canada are likely to have access to a welcoming consumer base.

Rich in Resources

Like Human Resources, Canada is also rich in natural resources, making it especially attractive
form manufacturing companies.

Free Trade

Companies expanding to Canada will also be able to avail the benefits of free trade agreements
between NAFTA, European Union, and the twelve-nation Trans-Pacific Partnership.

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Switzerland
Pro-Business Governance and Law Enforcement

Switzerland is one of the freest economies of the world with a government and regime that
encourages business and investments. Other than being pro-business, the government is very
stable and sound which makes it an attractive country to expand into.

Central European Location

Expanding in Switzerland will give you access to a very Multicultural and Multilingual market.
Which means, no matter what your product is, chances are, you have scope for that in
Switzerland

Skilled and Flexible Workforce

The workforce in Switzerland is very skilled but not very big in number. Switzerland has great
educational systems with workers being able to access institutes all around Europe to build skills.

Developed Business Fields

Switzerland is well known for specialty products like luxury watches etc. However, efforts from
the governing body make it an attractive place for fields such as R&D and IT.

Brazil
Very Big Market

With the biggest population in our list of compared countries, Brazil has one of the biggest
potential for consumers in the world. Brazil also is the 9 th largest economy in terms of purchasing
power, which makes this market attractive.

Rich in Resources

Brazil’s vast amount of natural and human resources make it a prime country that can help
companies reduce cost.

Huge Workforce

With one of the biggest workforces, Brazil is a fruitful economy for manufacturing industries.

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Conclusion
As we come to the end of this report, we conclude with our top three choices for international
expansion. Even though there are multiple factors yet to be considered, such as what type of
product or service we are willing to expand, or whether the goods or services need skilled
workers etc, we chose our top options considering a general viewpoint.

Our choices, in orderly manner, are Singapore, Canada, and Switzerland. The reasons for
choosing these countries are given in the previous section of the report.

However, the reason for not choosing New Zealand and Brazil are as follows.

We did not choose New Zealand even though it has a lot of similarities with Switzerland is
because of the location and population. Even though it is much easier to start or expand a
business in New Zealand, we went with Switzerland as it is located centrally in Europe, and
having operations there leads up to approaching potentially, all of Europe.

Brazil on the other hand was an easy drop, even though the abundance of natural and human
resources was attractive. The country has a corrupt governing system, and very long and hard
procedure of starting or expanding a business, which makes expanding there a pretty big risk.
Additionally, even though the purchasing power in Brazil is high, this calculation does not regard
the income disparity and so, the market simply is not attractive enough when compared to other
options.

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References and Citations
1. Piekkari, R., Welch, D., & Welch, L. S. (2014). Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
2. Heritage Foundation (Washington, D.C.), & Wall Street Journal (Firm). (2020). The
index of economic freedom. Washington, D.C: Heritage Foundation.
3. Singapore Corporate Tax - 2020 Guide: Taxable Income, Tax Rates, Incentives. (2020,
March 23). Retrieved from https://www.corporateservices.com/singapore/corporate-tax-
in-singapore/

4. Stephens, Misicka, Page, F., News, L., democracy, D., Geneva, I., Affairs, F., Tech, S.,
Depth, I., reports, S. and To, S., 2020. Switzerland Falls In Foreign Investment Ranking.
[online] SWI swissinfo.ch. [Accessed 2 April 2020].
5. Szilvana Spett, G., 2020. Switzerland Is Top In The World For Change Readiness.
[online] S-GE. [Accessed 3 April 2020].
6. Stephens, Misicka, Page, F., News, L., democracy, D., Geneva, I., Affairs, F., Tech, S.,
Depth, I., reports, S. and To, S., 2020. Switzerland Falls In Foreign Investment Ranking.
[online] SWI swissinfo.ch. [Accessed 2 April 2020].
7. Lopes, H, (2019), Brazil: Corporate Tax Comparative Guide, Mondaq
8. Tamasy, C., & Heron, R. L. (2008). The geography of firm formation in New
Zealand. Tijdschrift voor economische en sociale geografie, 99(1), 37-52.

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