The Woes Of Doing Business Internationally (And How To Fix Them)

Doing business internationally has always been challenging, ever since the early days of capitalism. No two countries have the same systems, and markets can fluctuate between locations. While you will ultimately make more profits, you will sometimes get into trouble and need to reevaluate your approach. 

But what specifically can go wrong, and how do you fix these problems? Let’s look. 

Cultural Differences

Cultural differences are among the top challenges. A lot of locations are just different from back home, which makes them challenging to navigate. 

Unfortunately, the fix for this problem is quite complicated. Usually, it requires taking radical action. 

The best way to sort the problem out is to use local managers who can still interface with the senior team at head office. They can use their freedom to run the local arm of the business in a way that makes sense for the surrounding culture. You can also try partnering with expert consultants who’ve helped businesses like yours in the past make the transition. Again, these can be hard to find, but highly effective. 

Money Flow Problems

Another issue is the money problem. Businesses generate cash in local currency, so you’re often having to constantly convert between them, often at high cost, so you can invest where it makes the most sense. 

You can generally fix these issues with corporate FX solutions. You need partners who can guide you through the challenges of changing money and the currency risks involved. You don’t want to be in a situation where you’re losing money between currencies because you keep changing at the wrong rates. 

Geopolitical Tensions

Geopolitical tensions are another reason why doing business internationally can be challenging. Changes in laws and disputes between companies can sometimes affect private firms. 

This is particularly the case when companies have some sort of strategic angle that’s important for the home country. When this happens, you may find that your activities are restricted. 

The way to get around this is to develop contingency plans. If there’s a war or some sort of dispute, you don’t want to be 100% dependent on one particular region. You want to be able to branch out. 

Therefore, look for suppliers and networks in multiple locations. Increase your footprint globally instead of simply chasing profits. 

Language Barriers

Language barriers can also be a problem in some regions of the globe. Some countries just don’t have a lot of English penetration, especially East Asia and parts of Africa. If you want to do this business in these regions, you may find that things get lost in translation more than you’d like. 

The fix is to invest in professional localization services. These will ensure that your ads will make sense to local people and that you’ll use the right idioms. 

Legal Issues

Lastly, you’re likely to run into legal issues if you do business overseas. Different rules often apply. 

Therefore, focus on legal compliance and make it a core pillar of your business. Bring in lawyers and consultants who can help you make the right decisions.