5 Crucial Factors to Help You Determine the Viability of a Foreign Business Location

Setting up a business in a foreign location carries with it multiple advantages. The expansion opportunity, for instance, or diversification of reach, not to mention, growth and a global footprint.

However, actually figuring out the most appropriate foreign location for your business can be quite overwhelming and you must take into account a lot of factors.

To start you on your journey to figuring out the ideal investment location; here are five crucial factors to keep in mind.

1. People

Arguably, the most vital factor. The success of a business depends on its people; their level of professional skills, adequate language skills, and creativity.

If you chose to invest in a country but you end up lacking a skilled workforce to help you drive success, then chances of failure are high. Note that this skilled labor force must be able to cater to all levels of your business—from managerial to technical.

Take, for example, Switzerland. The country’s education system makes a point of incorporating apprenticeship in as many fields as possible. That way, there is a constant flow of highly skilled professionals.

Moreover, Switzerland is multilingual. Consequently, it gives a company aiming to operate at global level a distinct advantage.

2. High Level of Innovation

This is the age of fast-moving markets which means for a country to be conducive for foreign investment, it must provide top-level infrastructure, efficient institutions, partnership opportunities, and human capital.

However, another very important provision is innovation. An existing innovation ecosystem will give your company a chance to compete competitively thanks to new products or services.

According to the World Intellectual Property Organization (WIPO), Switzerland has consistently occupied the top position with regards to innovation. In particular, Switzerland excels in technology, knowledge and creative outputs such as patents.

Consequently, Switzerland is one of those countries that is rather conducive for foreign investment.

3. Favorable Government Regulations

Regarding government regulations, aspects such taxation laws, registration laws for foreign companies, an effort to avoid double taxation and level of ownership play a great role in determining how viable the country is for foreign investment.

If on the other hand, a country has inconvenient labor laws, foreign investors might shy away. Ultimately, any investor will look for a country that will offer the fastest path to success while mitigating the level of risk.

4. Availability of Experienced Consultants

Anytime you are in a new country, chances are high you will need a bit of help navigating the various frameworks, for instance, the legal framework in the country.

Moreover, with regards to factors such as finances and real estate, you will need advice and help to determine the best location for setting up your business and how to manage your finances for the best results.

Again, Switzerland is home to reputable professionals who will make the transition smooth. Case in point, cosmos values. Cosmos Values boasts of a team of experts in all manner of fields ready to provide support.

5. Underlying or True Costs

The success of an investment is not only dependent on the direct cost of personnel and real estate, but also the indirect costs that will certainly affect your profit margin.

Some indirect costs to take into account include, the rates of taxation for both individuals and enterprises, available tax breaks, government incentives, social costs, local labor laws such as minimum wage and the hours employees can work.

If you do not take these indirect costs into account before investing, then chances are high you will end up hemorrhaging money and experience loss. Therefore, find a country where the indirect costs are minimal.


There is so much more to consider when determining how conducive a certain country is for foreign investment. For instance, you should also take into account the cost of living, how well both and your family will adapt to the weather and also ease of travel.

However, the above five factors are crucial and should be at the top of your list when deciding on the merits and demerits of a certain country.


News Reporter