If you are starting a business or looking to expand the existing one across the borders of your native country, then you should really pay attention to our list of the easiest countries to export to.
Trading has been here since the dawn of times. People always exchanged goods, giving something they had plenty in return for the things they lacked of. We can’t speak about the international trade before the emergence of the nation-states, but that doesn’t mean people didn’t trade on long distances. There were no borders to stop them or customs officials to give them trouble. Fast forward to the future and international trading is something that makes the world as we know it and has a great economic as well as political and social importance.
Important elements of international trade are export and import. Export is sending products or services of one country to another. On the opposite side, import is bringing products or services into the country. Every country wants to have a positive trade balance, which means that the value of exported goods is bigger than the value of imported goods.
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There are lots of advantages to export. The most important one is that exporting goods or services is the easiest way to expand your business internationally. Your products will be accessible to a larger market and if your product is any good, you will see an increase in sales, resulting in an increase in profits. Another appeal of exporting is that the risk is far smaller compared to establishing the same business in the particular country through foreign direct investment. Finally, as an exporter, your business will see increased reputation in the native country as well. There are, however, lots of disadvantages to exporting that could have bad consequences for your local business and the company in general. First, you would have to dedicate some serious resources to your exporting operations. This includes both financial and personnel resources which will in the short term have a negative impact on your local activities. There is a possibility that you would have to modify your product to fit the foreign market. There are lots of other complications that may arise from being unfamiliar with trade regulations of the foreign country, its language or culture. This is why you don’t see often small businesses and enterprises exploring the possibility of export. Even if that happens, it is focused on a neighboring country or a country with similar market and customer base. If exporting isn’t your final goal, but moving to another country with your family is, then check out our list of the Best Countries for Expats to Raise Children.
You must be curious about our methodology in figuring out the easiest countries to export to. After testing lots of different methods, we settled on combining the list of countries with the highest value in imports from The World Factbook and trading across the border data from the World Bank given in DTF (distance to frontier) measure. Countries that import lots of goods present a high demand and developed market and are more open to trade with other countries. The data from World Bank tells us how it’s easy to trade across the border of a particular country in terms of time and cost associated with border and documentary compliance as well as domestic transport for both export and import. Distance to the frontier measure of 100 represents the best performance while 0 represents the worst performance. We awarded points for the countries according to their performance on both lists and summed it all up into our IM Score. Note that the source for trade information about the countries was The Observatory of Economic Complexity. Shall we take a look at the list of easiest countries to export to?
10. South Korea
IM Score: 183
Import Value: $405 billion
Trading Across Border DTF: 92.52
Although South Korea is more turned to export, being the 5th largest export economy in the world, the country is also in the top 10 when it comes to the value of imports. Still, $405 billion of imported goods and services in 2016 represents a decrease when compared to the 2015 figure of $408 billion. Crude petroleum accounted for 12% of all goods imported to South Korea followed by integrated circuits at 7%. China, The United States, and Japan represent important trading partners to South Korea.
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9. Japan
IM Score: 183
Import Value: $629 billion
Trading Across Border DTF: 86.43
Last year, Japan imported $629 billion in value which represents a great jump compared to 2015 when the figure was $589 billion. In 2015 Japan exported mainly cars, integrated circuits and vehicle parts with the export value being at $670 billion. Top export destinations were China, The United States, and South Korea. The country’s main imports were petroleum gas and crude oil, while the main import sources were China, the United States, and Australia.
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8. Belgium
IM Score: 185
Import Value: $251 billion
Trading Across Border DTF: 100.00
Like almost all members of the European Union on our list of the easiest countries to export to, Belgium is highly efficient when it comes to both export and import, making the process easier for all the sides involved. Belgium mostly imports raw materials and machinery and equipment, with the Netherlands, Germany, and France being the country’s most important trade partners.
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7. Spain
IM Score: 187
Import Value: $287 billion
Trading Across Border DTF: 100.00
Spain has been importing less since 2015, but the import is still bigger than the country’s export, resulting in the negative trade balance. Cars make 12% of all Spain’s exports while the important imports are crude petroleum and cars. In terms of both export and import, France, Germany, and Italy are the country’s biggest trading partners.
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6. The United Kingdom
IM Score: 188
Import Value: $581 billion
Trading Across Border DTF: 93.76
Don’t believe us entirely on this one, since the things will surely change once the United Kingdom officially exits the European Union and maybe starts to lose some of its free trade perks. Cars and packaged medicaments represent both the country’s biggest imports and exports. Also, gold makes up to 10% of all exports. The United Kingdom mostly exports to the United States while Germany is the country’s largest import source.
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5. Italy
IM Score: 188
Import Value: $372 billion
Trading Across Border DTF: 100.00
Italy, next on the list of easiest countries to export to has been using the benefits of Europe Union free trade and managed to have a positive trade balance in 2015 of more than $40 billion. Italy imports mostly from Germany, France and China and exports to the United States and also Germany and China. Packaged medicaments, cars and refined petroleum are the country’s top exports while crude oil, petroleum gas, and cars stick out among the imports.
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4. Germany
IM Score: 189
Import Value: $987 billion
Trading Across Border DTF: 91.77
You have seen Germany plenty on our list of the easiest countries to export to as a trading partner, so you know you have good chances to enter Germany’s market. In terms of exports, the country is ranked 3rd in the world, holding the same position in terms of economic complexity. Although it imports close to $1 trillion, Germany still has a positive trade balance with a difference around $250 billion. Germany’s top trading partners are the United States, China, and France, while cars and vehicle parts being both the most exported and imported goods.
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3. The United States
IM Score: 192
Import Value: $2,2 trillion
Trading Across Border DTF: 92.01
At third spot on our list of easiest countries to export to we have the the United States that is officially the largest market for the rest of the world in terms of exports. The country has imported more than $2 trillion in 2016, substantially more than second-placed China. The United States is also the world’s second biggest exporter in the world, exporting refined petroleum, planes, helicopters, and spacecraft alongside cars. Cars also represent a great part of the country’s imports alongside the crude oil and computers. When it comes to trading partners, The United States mostly exports to and imports from Mexico, Canada, and China.
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2. Netherlands
IM Score: 193
Import Value: $422 billion
Trading Across Border DTF: 100.00
Although it may surprise some, the Netherlands climbed high on our list also thanks to having an efficient trade across the border. The country sits in the 8th place in the world in both export and import value. The Netherlands’ main exports are refined petroleum, crude petroleum, and computers with main export destinations being France, Germany, and the United Kingdom. When it comes to imports column, the country also imports the same goods that it exports with a similar trading partner on top of China.
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1. France
IM Score: 195
Import Value: $561 billion
Trading Across Border DTF: 100.00
France tops our list of the easiest countries to export to thanks to efficiency and $561 billion of imports. You will be happy to hear that the country imports more than it exports, but it is placed in 6th place in both import and export value when compared to the rest of the world. Planes, helicopters, and spacecraft alongside packaged medicaments and cars are France’s biggest exports. Cars, crude petroleum, and petroleum gas represent the country’s main targets for import. The most important trade partners for France in terms of export are Germany, the United States, and the United Kingdom. The country mostly imports from Germany, China, and Italy.
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