The 2015 International Business Indicator is a survey of 253 executives from U.S. companies with $50 million or more in annual revenue that conduct business internationally. Conducted by GfK for the International Group of Wells Fargo & Company, the score represents the average of responses for two questions regarding the level of importance and activity that U.S. companies expect from their international business in the next 12 months.
This year’s score is 63, down five points from 2014 due to dampened expectations regarding the global economy. Fewer companies this year than in 2014 expect their international business to increase in the coming months. Despite that, roughly half of the companies believe that business outside the U.S. will be increasingly important to their company’s overall financial success. 80% of businesses agree that expanding internationally is important for long-term revenue growth and as a result, 60% of businesses are looking to step up their developing planning in the next 12 months.
Canada and China at 23% top the list as the most important countries for the expansion of U.S. businesses. Mexico at 20% and Western Europe at 19% follow close behind. Brazil and India are also being eyed for future growth.
When it comes to assessing new international markets to enter, U.S. companies cite political stability, core infrastructure, favorable tariffs and/or trade regulations, ability to enforce contracts quickly, ease of trading across borders, and skilled labor force as the top important factors.
What other countries should U.S. companies be eyeing for future growth?
Read the full report here: https://www.wellsfargo.com/com/focus/international-business-indicator