The report - written by the Economist Intelligence Unit (EIU) – surveyed more 450 senior level executives from international businesses around the globe giving an insight into regulatory developments.
One of the key findings was that 65 per cent of business leaders agreed that domestic regulatory developments have made it easier for their companies to expand into new markets.

Changing regulation

Those in the shipping and transport sector (78 per cent) and those from the healthcare and life sciences sector (82 per cent) gave the most positive outlook on changing regulation.
Meanwhile, three-fifths of respondents believed that as well as supporting cross-border expansion, regulatory regimes encourage companies to innovate and develop new products.
Almost 70 per cent of those surveyed reported that regulatory frameworks are a key factor in whether companies choose to invest or not in a new market. This proportion rose to 76 per cent for companies from the energy and natural resources sector.

Investment barriers

Cynthia Donoghue, partner and co-head of Reed Smith’s data privacy, security and management group, commented: ‘Although overly burdensome regulation and the absence of a transparent regulatory environment can create barriers to cross-border investment, the EIU survey demonstrates that regulation benefits international expansion, encourages innovation and determines valuable investment decisions. In order to facilitate global business transactions and to create a level playing field for all market participants, it is important that coordinated regulatory frameworks are put in place.’
Reed Smith partner and expert in international transactions Edward Miller added: ‘A growing trend we are seeing with our client companies embarking on ambitious international expansion plans is that regulatory developments at home are making it easier for them to break into new markets. Enhanced regulation also encourages investments in innovation, with different types of regulation having varying impact. This is especially the case in more developed markets such as the US and Europe.’