Recent volatility in the global economy has dampened the Top 100 law firms’ enthusiasm for expanding overseas, new research shows.
One quarter of finance directors at the Top 100 surveyed by Thomson Reuters Legal Business said they were likely to consider expanding abroad to improve profitability, down from one third last year.
The sharpest fall in interest was for Russia, due to concerns over increased sanctions, the fall in oil prices and the fall in value of the rouble. Only 12% of finance directors showed interest in Russia and Central Asia, compared to 48% last year.
Sub Saharan Africa, hit by weakness in both oil and metals prices, also fell heavily in popularity—none of the finance directors showed interest, compared to 64% last year.
Instead, interest switched from emerging markets to the established ones of North America, Western Europe and Japan, which each found favour with more than 60% of financial directors. China was the most attractive destination, with 80% of the directors showing interest, and the Gulf maintained its appeal with 76% approving of expansion there.
