U.S. companies considering international expansion may want to look due north. The recently released annual Forbes Best Countries for Business report found Canada to be the best environment for businesses worldwide.
At HSP, this came as no surprise. Canada is one of the top 10 countries our clients expand to when considering international operations. The appeal is understandable, as the nation is faring much better than its southern neighbor. With huge concerns about a double-dip recession looming, the U.S. economy has not been as robust as in years past (though still breaking into the top 10 on the Forbes list). Canada also has the ninth-largest economy in the world, at $1.6 trillion, with the Royal Bank of Canada predicting its GDP to expand by 2.5% in 2012.
The Forbes report takes a look at a number of key factors for optimal business operations: property rights, innovation, taxes, technology, corruption, investor protection and more. Canada’s boost from last year’s fourth-place rank to this year’s top spot can be attributed to reduced corporate and employee tax rates, increased ease of starting a business and superior investor protections.