This article will reveal the most respected country in the world. Check out our full list of Most Respected Countries in the World.
The Role of Political Values, Brand Awareness, Culture, and Foreign Policy
The first question to ask when considering the most respected countries in the world is what it means to be respected by other countries. Is this an economic or political question? In today’s world, politics plays an important role in determining a country’s esteem. However, it is only the tip of the iceberg in this study. A country’s reputation is impacted by numerous factors such as its political stability, economic performance, social policies, cultural influence, international relations, environmental stewardship, media portrayal, human rights record, safety, and technological advancements. A stable government, strong economy, and commitment to social welfare bolster positive perceptions, while diplomatic standing, environmental responsibility, and respect for human rights also significantly contribute.
Some surveys base their findings on a country’s global dominance. As the notion of soft power evolved, Joseph Nye, the concept’s inventor, identified three key sources: political values, culture, and foreign policy. However, within these three categories, the individual sources of soft power are numerous and diverse. In this context, the annual Anholt-Ipsos Nation Brands Index (NBI) research has also examined for more than 15 years perceptions of nations around the world. The Anholt-Ipsos Nation Brands Index (NBI) provides a comprehensive measure of global perceptions of different countries. It assesses the reputations of nations based on various dimensions, offering insights into how countries are viewed worldwide. Based on it’s 2023 study, Japan ranks 1st on the Nation Brands Index, thanks to its rising global popularity. It’s the first non-western country to secure this title. The country has also ranked first in our list of m0st respected countries in Asia. On the other hand, France experienced its lowest rank yet due to the weaknesses in the People and Governance Indices. The decline in 2023 in perceptions of fair treatment and respect for citizens’ rights, responsible behavior in peace and security, and overall welcoming nature has contributed to the overall drop in rank.
The popularity of a brand also influences the level of respect that countries have. In that sense, some corporations have lost their reputation, resulting in a lack of respect in the country where they are situated. Sometimes the contrary is true; a country’s lack of respect can have a negative impact on the brand’s business. However, this should not always be the case. According to one study, many South Korean automakers have been working hard to offset the halo effect caused by the country’s unfavorable reputation. However, South Korea is regarded as one of the leading countries at the forefront of electromobility, and the role of Hyundai Motor Company, the country’s major player, will be closely watched in the coming years, particularly given its ambitions for fuel cell vehicles (FCEVs). The company’s market capitalization or net worth is $50.13 billion, with an enterprise value of $119.99 billion. The domestic auto market accounts for 43.2% of the total, while the global car market makes up 4.5%.
When assessing the most respected countries in the world, we must evaluate the level of interest that the country generates among travelers and tourists as well. Tourism significantly impacts a country’s reputation as well. The worldwide luxury travel market was worth $1,946.1 billion in 2021. Looking ahead, the market is estimated to reach $2,616.5 billion by 2027, with a CAGR of 5.06% from 2021 to 2027. Following Covid-19, the number of travelers has steadily increased, benefiting both adventure tourism and luxury accommodations. One of the most prominent services is Booking Holdings Inc. (NASDAQ: BKNG), a supplier of travel and restaurant online reservations and related services, with a market capitalization of $132.89 billion. Booking Holdings made $76.6 billion in gross travel bookings in 2021, including bookings made through Booking.com. This represents a 116% increase from 2020. As of December 2022, Booking.com remains the online travel company with the largest market capitalization, at $78.2 billion.
Expedia Group Inc. (NASDAQ: EXPE), founded in 1996 as a Microsoft division, has established itself as a market leader in the online travel industry. After Covid-19, the company’s earnings improved significantly and eventually approached pre-pandemic levels in 2023, reaching slightly over 13 billion US dollars. Since the pandemic, Expedia Group’s net income has reached over 800 million US dollars in 2023. The United States is an important market for Expedia Group, accounting for more than 60% of the company’s global earnings in 2023. A substantial presence in the country is reflected in a high level of brand awareness. According to their survey, people in China, Hong Kong, Japan, South Korea, Taiwan, and Thailand are responding positively to the relaxation of travel restrictions. Travelers are yearning for warm weather across these regions, with New York, Las Vegas, and London remaining at the top, while Orlando and Cancun rose in popularity in 2023, and Miami surpassed Boston for tenth position on the list. Tokyo was a new addition to the list that same year.
Moreover, foreign policy decisions significantly influence a country’s global reputation. Prioritizing human rights and ethical behavior can enhance a nation’s image. Conversely, involvement in conflicts or controversial alliances can damage its standing. For example, Canada’s reputation as a peacekeeping nation is bolstered by its commitment to human rights and international cooperation. In contrast, Russia’s involvement in the Ukraine conflict has led to widespread condemnation and a damaged global image. Similarly, Sweden’s policies on neutrality and humanitarian aid have strengthened its positive international standing.
London skyline, its skyscrapers, buildings, bridges and the Thames River
Methodology
For creating the list of the most respected countries in the world, we utilized the Human Development Index to produce a list of the world’s most developed countries. That list was ranked using two additional indexes: the Human Freedom Index and the Human Rights Index. We ranked the new list using RepTrack and Soft Power 30 data. The final ranking includes data on economic development, freedom, and human rights in each country.
This is the most respected country in the world.
Switzerland
Human Development Index: 0.967
Human Freedom Index: 9.01
Human Rights Index: 0.95
Switzerland has a strong free-market economy with a per capita GDP of more than $110,000, ranking among the highest in the world. While Switzerland is not classified as a tax haven, it is known for its low taxes, which enable residents to retain more of their earnings. Switzerland also excels in infrastructure, boasting excellent roads, airports, train systems, power grids, and lightning-fast internet access. The country maintains an extremely low crime rate, with violent crime being even rarer than in other wealthy nations. These are just a few of the reasons why Switzerland is one of the most respected countries in the world.
Check out our full list of Most Respected Countries in the World.
At Insider Monkey, we delve into a variety of topics, ranging from the most hated brands to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. This article is originally published on Insider Monkey.