It comes as no surprise that the United States has lost some of its economic prowess on the global field. But it’s also not struggling as bad as some might imagine. Grant Thornton’s 2013 Global Dynamism Index, which ranks the potential of worldwide economies for business growth, ranked the U.S. as number 11 in 2013, down one spot from 2012. Though America still outranks countries like Japan and the United Kingdom, it cannot compete with the massive growth in Asia or the business-friendly laws of Scandinavian countries. The country still has a long way to go to recover from the recession, but these are the best places for investment abroad and where business owners are likely to make a profit.
Australia and New Zealand
Making a huge jump from number seven in 2012, Australia is now the most dynamic economy in the world. While the rest of the world was steeped in economic downturn, the country has had over two decades of unbroken economic growth. It has a skilled labor force and values development, and it owes its success to everything from the boom in mining to the globally-embraced surfer brands like Billabong. But while economists whisper the potential for a 2014 recession due to sky-high property rates and a growth in demand from China, nearby New Zealand has jumped all the way from 13th to fourth best economy in the world. Their export-driven economy makes for a great place to do business, and their growth-friendly tax laws appeal to corporations across the board.
International business leaders have loved Chile for a long time, and their economy just keeps growing. Now, they have the second-best economic outlook in the world. The country is rich in natural resources – their copper industry accounts for 45 percent of the national revenue. They also have a host of other thriving industries like salmon fishing, red wine, and a growing foothold in clothing and accessories. Plus, they’re home to LAN airlines, the largest airline owned by Latin America. Even though some industries have struggled in the face of global economic issues, it’s hard to find any part of Chilean imports or exports that hasn’t experiences some growth in the past year. It remains an exciting place for global investors.
The biggest growth in economic dynamism comes in the form of the Chinese economy, which surged ahead from 20th place to third place. China has been growing at a rate of 10 percent per year for over 30 years, and now it is a prime destination for luxury retailers as well as a leader in industry. While it’s still one of the best places in the world for international business, China is facing problems with debt, manufacturing, and lower wages for workers will success benefits the wealthy and elite. All of that equals a greater reliance on international trade than ever, especially because many economists see China as the largest indicator of economic success worldwide. In the United States, China is often blamed for manufacturing job losses and the trade deficit, simply because its appeal to investors is hard to ignore.
International business is in a period of transition as some countries recover from serious recessions and others grapple with slower growth than normal. Some of the most powerful nations in the world are finding their financial niche in the global economy is being redefined, and the United States is no exception. The real question seems to be who will expand and how far will this expansion really go.
Brett Harris is an international businessman who likes to blog. The 10 Best Online International Business Schools can help you start a career that can take you worldwide.