Answer: Rugby is very competitive in countries such as: South Africa, New Zealand, Australia, England, Wales, France, Ireland, Scotland, Argentina, Italy, Tonga, Samoa, Fiji and Argentina .
Each of these countries have their own very specific competitions with domestic sides from each country. Rugby is also played in: Japan, Georgia, Canada, USA, Romania, Russia, Uruguay, Namibia, and Portugal. (these games are competitive among similar strength sides) this is followed by: Germany, Spain, Brazil, South Korea, Chile, Morocco, Kazakhstan, Belgium and Ukraine. Overall 120 countries play rugby world wide!
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Well there are 95 countries on the official IRB World Rankings according to this webpage: http:/www.irb.com/rankings/full.html