Asia-Pacific top destination for global business expansion
When it comes to global business expansion, the Asia-Pacific region remains an attractive proposition for many businesses around the world.
In a new CFO survey presented by Globalization Partners and CFO Research, 65% of respondents identified the Asia-Pacific region (excluding China) as their choice of destination for expanding or adding operations.
This was second only to North America (71%), with capturing market share cited as the top reason for expansion into these regions. Expanding sales, diversifying investment and acquiring top talent were the other reasons cited by the 166 senior finance executives polled in the survey.
Overall, 45% of the survey respondents said that they are either currently expanding globally or only slightly delaying their expansion and will do it within one year. Another 9% intend to expand internationally but remain in a year-long holding pattern.
Nicole Sahin, CEO and founder of Globalization Partners, said, “This research offers grounds for optimism that the economic crisis caused by COVID-19 has not derailed international expansion plans for most businesses who were already on this path.
“However, the operational challenges, particularly around local legal rules, recruitment and compliance, can take months to navigate.”
Other key findings from the survey point to a majority (83%) of businesses considering a remote global workforce model as a response to COVID-19. In relation to global expansion, employee health and safety is a top concern ahead of other issues such as new business strategies, increasing sales pipeline and revenue, as well as reducing organisational costs.