10 A global guide to business relocation Key country summary Americas Argentina – although a high-tax country, offers tax incentives to corporations engaged in production of software, bio-fuel and power using renewable sources, biotechnology etc. Argentina’s advantage lies in its growing economy and availability of educated work-force. Brazil – supports and incentivises R&D activities and is working towards technological innovation, product innovation, and enhanced R&D activities. Canada – boasts a number of characteristics that foster business growth, including a prudent fiscal policy, low inflation, interest and unemployment rates, a highly-educated population and a business friendly corporate tax framework. Chile – with the objective of becoming a hub of innovation and entrepreneurship in the Latin American region, Chile has implemented a number of Chilean Economic Development Agency programs designed to attract entrepreneurs and R&D investment. Colombia – R&D activities, scientific and technological development in Colombia attract various tax incentives. Mexico – offers innumerable advantages, namely, availability of skilled labour at competitive costs, low transportation costs, network of free trade agreements and export incentive programmes. Panama – has a special tax incentive headquarters’ regime that facilitates multi-nationals establishing their headquarters in Panama. Economic activities of national interest are granted several tax benefits in Panama. Puerto Rico – offers the security and stability of operating in a US jurisdiction with an array of special tax incentives for foreign direct investment. It offers a highly attractive incentives package that includes a fixed corporate income tax rate, one of the lowest in comparison with any US jurisdiction, various tax exemptions and special deductions, training expenses reimbursement and special tax treatment for pioneer activities. United States – one of the world’s major trading markets, it welcomes foreign investment and is a relatively easy country in which to do business. Asia Pacific Australia – provides trade and business links between the Asia-Pacific region, Europe and North America as a result of its unique economic position. Australia offers a low cost business environment, highly skilled as well as multilingual workforce. An abundance of natural resources coupled with the world-class transport and telecommunication infrastructure adds to Australia’s competitiveness. China – one of the most important manufacturing bases in the world due to the country being rich in both skilled and unskilled manpower. China encourages foreign participation in investment projects by taking measures to make the investment climate more favourable and less bureaucratic. Hong Kong – the economy is characterised by free trade, low taxation and minimum government intervention. In order to attract more foreign investment to Hong Kong, the government maintains a low and simple tax system and has particularly strong links into the Asia Pacific region. India – a large pool of skilled and un-skilled labour and the prevailing cost arbitrage are an advantage for manufacturing and service centres to be set up in India. India is increasingly being used as an outsourcing hub by multinationals. New Zealand – has an open economy that works on free market principles and is recognised as being a leader in being easy to do business in. New Zealand’s exports account for about one third of real expenditure Gross Domestic Product (GDP). It has a potential for a sizeable manufacturing and service sectors which complement a highly efficient agricultural sector. Singapore – a dynamic and mature business environment makes it a favoured destination for multinationals operating in the Asia-Pacific region. Singapore is used as a regional/international headquarters by the global companies with large- scale needs.