Breaking Boundaries: Navigating Global Growth in the Digital Age

In this increasingly connected world, geography has ceased to be the barrier it once was for businesses. This shift has been primarily driven by the expansive reach of the internet, which enables companies to communicate with customers in far-off corners of the globe quickly and efficiently. Even small businesses now have the potential to extend their operations worldwide, either through careful planning or by becoming accidental exporters.

However, the question that needs to be answered is: is international expansion as simple as it sounds? Identifying and understanding the risks associated with such opportunities is essential to ensure they're worth pursuing.

I've spent a significant part of my career navigating international business, and comprehending foreign markets requires an even deeper understanding than domestic ones. This is simply because we naturally have more insight into the home markets where we live and work.

Language and communication form a significant part of this understanding. Take, for example, my early experience at Marconi, where we were advised to refrain from negotiating in a foreign language even if we were proficient. Knowing the language doesn't necessarily mean understanding the subtle nuances, non-verbal cues, and local customs, which could lead to misunderstandings.

Similarly, during my tenure at Toshiba, I learned firsthand how important language is and how getting it wrong could have costly implications. A seemingly minor disagreement about the word choice “Plain or Normal” led to the disposal of 30,000 flyers, emphasizing that words have great significance.?Mainly when you aren’t aware they can be used inappropriately or insultingly, which a global auto manufacturer fell foul of when they used a “Latin” sound word.

Remember that many people globally understand English better than they can speak it. So, the quality of your spoken English in meetings can definitely affect you. Moreover, if meeting attendees engage in extended discussions in their native language, don't feel disheartened or unsettled. They might sometimes resort to their own language due to the need for more English but still use English for specific technical matters. You can often grasp the essence of their conversation even in such scenarios. Remain patient and adaptable in these multicultural exchanges. It's essential to maintain patience and understanding in such multicultural interactions.

I had a similar experience at the Walmart IPO office in Shenzhen. During a conversation, I was able to respond affirmatively to their queries. When they asked if I understood Chinese, I clarified that I didn't, but I understood the English technical terms they had used. This exchange exemplifies how comprehension can occur even when complete linguistic fluency is not present. We shared a moment of amusement because the words they had used were distinctly "American," not "English." This highlighted the charming variations within the English language itself.

Even something as seemingly innocuous as maps can spark controversy. At Informa, we utilized UN country definitions for our global maps, which once incited a dispute with a local Minister of PTT in Morocco over a contested region. The disagreement reached such an intensity that our team risked expulsion from the country unless we addressed and corrected the contentious issues. To resolve the problem, we had to discard all the contentious reports. Thankfully, after making these adjustments, we could proceed with the conference as initially planned. This experience highlights the significance of being aware of and respecting local politics and sensitivities.

Beyond communication, understanding a country's business ethics and practices is critical. What's considered customary in one place could be seen as illegal in another. ??While engaging in practices such as offering or being expected to offer "little brown envelopes" may be considered customary in certain regions, it's crucial to remember that these actions could put you at odds with legislation such as the U.S. Anti-Bribery Laws. Such conflicts can lead to significant repercussions, including potentially barring your business from one of the world's largest markets – the United States. Therefore, it's essential to understand and respect the legal and ethical norms of each market you operate in. Ignorance of these nuances could result in no business or, worse, legal repercussions.

Underestimating the regulations, standards, and certifications required in each country is another common pitfall for businesses expanding internationally. Non-compliance could lead to hefty fines or even jail time. Even though we have several trade groups, such as the EU Single Market, NAFTA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), each market within these groups operates with different rules and regulations. Only one EU Single Market has one rule, one regulation and one standard across all 27 member states.

My Approach

I advise any business considering international expansion to be strategic rather than opportunistic. Make sure to prepare quickly into new markets, both strategically and resource-wise. I'd recommend engaging legal and financial advisors to understand the rules of the game and partner with commercial entities in your target markets to understand localization requirements.

The route to international growth and exporting from a home country varies from business to business. A systematic approach, starting with the markets closest to your home country and understanding the local rules, regulations, and certification processes, can help minimize risks and maximize growth potential.

Take it from someone who's been there: international business is complex, but with the right approach, it's an exciting and profitable venture.

Author:

Andy Hamer

I’m an accomplished sales and management professional with over 10 years of global experience in the Architecture, Engineering, Construction, and Owner sectors. Throughout his 40 year career, he has held senior positions at prominent companies such as Codebook, Xinaps, Invicara, Bentley, XYZ Reality, and Archdesk. Andy holds a BA (Hons) in Marketing Engineering and is a certified BIM Information Manager. He has authored a book on structured data management in BIM He is a Fellow of the Chartered Institute of Marketing (FCIM).