Five Risky Markets: What You Should Know if Your Business Takes You There

Many global organizations now operate across multiple countries, yet most remain unaware of the regulatory developments that affect their international workforce. The pattern is consistent: Regulations are becoming more complex, enforcement is intensifying, and the operational burden continues to grow.

You don’t need to avoid these markets, but you do need the right support and expertise to operate in them efficiently and in compliance. Here’s what you should know about the five riskiest countries for global operations — and how to lower your risk if you need to hire in them.

The challenges

The most attractive locations for expansion often present the most complex operational challenges. These markets offer massive consumer bases, competitive costs, skilled talent, and strategic positioning. However, regulations in these regions are evolving rapidly, creating compliance burdens that require specialized attention.

Organizations face five key challenges in these markets:

• Changing labor laws with limited transition periods

• Noncompliance violations that can halt business operations

• Financial penalties that can reach tens of millions

• Reputational exposure from compliance failures

• Compliance costs have increased HR expenses in some of these countries over the last year

Operating in these markets can be difficult, but instead of avoiding them, successful organizations rely on the expertise of global workforce enablement partners with knowledge of compliance matters and cultural norms in specific markets.

Five markets that require attention

Every country has unique requirements that demand specialized knowledge and careful planning, but some have more compliance challenges than others. Here are five countries that present compliance risks that are escalating faster than most realize.

China

The world's second-largest economy continues to attract massive investment, but organizations need to be aware of recent regulatory changes. As of December 2024, compliance with foreign investment laws required organizational restructuring, while labor costs are climbing due to policy shifts. Data localization requirements under the Personal Information Protection Law mandate expensive infrastructure investments, and ongoing US-China geopolitical tensions add complexity to sanctions compliance.

Russia

Beyond conflict-related challenges, Russia has complicated sanctions requirements and an unpredictable legal landscape. The 17th EU sanctions package adopted in May 2025 continues to expand compliance obligations. "Foreign agent" designations create additional operational constraints, while banking restrictions risk exclusion from financial systems based on the US dollar.

Bangladesh

Ultra-competitive labor costs make Bangladesh attractive for manufacturing, but respect for workers’ rights is now getting more attention. With the Bangladesh Labour Force Survey 2022 indicating that 85% of the country’s labor force is in the informal economy, compliance gaps create significant exposure. The ITUC 2025 Index lists Bangladesh among the top 10 worst countries globally for workers' rights, while new EU due diligence requirements are raising standards for international companies.

Philippines

English proficiency and established business processing outsourcing (BPO) infrastructure make the Philippines a natural expansion choice. However, challenges related to workers’ rights and evolving foreign worker regulations under DOLE Order No. 248 are changing operational requirements. Meanwhile, pending gig economy legislation could significantly impact how international companies structure local operations.

Turkey

Turkey's geographic position offers strategic market access, but its regulatory complexity is increasing. New safety requirements mandate additional compliance infrastructure, while economic volatility is affecting business conditions. The country's inclusion in the ITUC's top 10 worst countries for workers' rights reflects ongoing challenges.

Strategic approaches to risk management

The risks these countries present aren’t insignificant, but you don't have to manage these complexities alone.

For companies in these markets: Organizations that operate in these markets often rely on expertise to handle regulatory matters and cultural nuances. This approach uses local specialists who understand statutory requirements and cultural expectations — from foreign investment compliance requirements to benefits that are in line with evolving standards.

For expanding workforces: Organizations expanding or moving roles to these countries can learn about the risks ahead of time from local experts. Some choose to forego these markets for lower-risk countries, while others may partner with an EOR services for support in accessing them without setting up an entity.

The expertise advantage

Compliance in complex markets requires specialized knowledge and local expertise. Rather than building internal capabilities from scratch or accepting escalating risks, savvy organizations partner with providers who have deep knowledge of local requirements and cultural nuances.

For instance, partnering with Safeguard Global provides access to 400+ in-country experts who stay current with regulatory changes, understand implementation requirements, and can guide decisions about where and how to operate most effectively.

Taking the next step

If your organization operates in or is considering any of these high-risk markets, you need to understand your challenges and strategic options. Whether you need support for existing operations or guidance for workforce optimization, the right expertise can help you conduct business confidently in complex environments while maintaining competitive advantages.

Learn more about doing business in these five countries and discover how our expertise can help you manage compliance while achieving your operational goals.

Learn more about hiring in these five countries