The Risk of International Expansion

The risks faced when engaging in international expansion

When planning to expand a business into new markets, it's normal to come across some risks that may prevent our companies from actively developing new opportunities in foreign areas. For that reason, it’s important to analyze all the implications of an international business’ development and then find the best solutions to favor this process.

But what are the risks? And what are the essential questions you must ask before planning an international expansion? Check below:

  • Risk of increase the costs: The expansion costs will be offset by your business foreign actuation? Do the outlay and the investing worth it?
  • Risk of regulatory obligations: Which regulations and requirements your company must comply in order to grow its presence in foreign markets?
  • Risk of unknown tariffs and licenses: Which documentation does your company need to obtain when acting internationally? And what are the duties and taxes involved in the process?
  • Risk of unknown import/export processes: Which processes your company will be responsible for? How should my company plan and develop all import/export processes?
  • Risk of increasing the staff: Should the company enlarge its staff? And which training will be necessary to provide in order to improve international relationships?
  • Risk of Socio-political uncertainties: What is the actual social-political scenario and how it can influence your business expansion?
  • Risk of reputational changes: How the presence in foreign markets may affect the company’s reputation?
  • Risk of compliance on delivery: Will your company be capable of delivering its new and international orders on-time?

These questions will help you to identify all the international expansion implications and plan the next steps to reach new markets. To deal with those risks, it’s essential to be informed about the market situation, as well as financially and bureaucratically prepared.

Another important move is to search the right partners that may favor or facilitate your foreign acting. GCE Logistics can be a reliable option in this case. GCE has a solid financial position, an experienced staff and great distributions channels to optimize your global transactions and minimize the risks already mentioned. The company also concerns to identifying the most appropriate customs regime to support your business strategy.

With more than 20 years of experience, GCE reached a sufficient know-how and quality to be recognized as the most successful logistics companies on Middle East. So if your business is willing to engage in this region, you may count on GCE Logistics services.

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