Despite increasing trade barriers and a rather pessimistic expectation of global economic development, technology and growth opportunities are driving companies internationally in new markets.
Companies that want to open up new markets should keep two strategies in mind: They must both react quickly and appropriately to short-term challenges and plan and implement their long-term goals.
Overcome the barriers to international growth
While there is a lot of growth potential for companies on the one hand, political barriers to entry are increasing on the other. The European Commission has identified nearly 50 new trade barriers introduced in 2018 in countries outside the EU. The total number of barriers for economic operators has risen to a record level.
Christoph Schmidl, Head of Outsourcing at Grant Thornton Austria, says: "Within the EU, uncertainty about the outcome of the Brexit is a challenge, as are trade disputes around the world. It will be difficult for a company to calculate the risks. When companies think about entering a new market, they often postpone the decision until there is clarity."
In our article, we provide an overview of the benefits of internationalizing companies and the economic or political obstacles they may face. We show how globally expanding companies can respond to constantly changing market dynamics with long-term planning and agile decision making.