4 key factors with a huge impact on international business relations
Have you ever wondered why it’s so hard to break into some international markets while other countries welcome us with open arms? Actually, there are at least five key factors that have a huge impact on international business relations and once you understand their relevance, you can choose what to do going forward. Sometimes it’s just better to consider alternatives.
1. A History of Bad Blood Between the Nations
If you are looking to expand your global reach by launching businesses in other countries, you may wish to consider hiring a graduate with a Norwich University master in history because international relations can get tricky when there is bad blood between nations. Even history dating back centuries can infiltrate a society, making it difficult to be on friendly terms. Some nations get beyond bad history in an effort to grow their respective economies, while others look at such things as colonial occupation or being on the losing side of a war, and then all bets are off.
2. Current Political Relationships
There are times when two nations got on well with each other, but current ruling parties have brought about a new era of tension. In recent decades, this has been observed time and again, especially in Western dealings with countries in the Middle East. Look how strained some of the United States’ relations have become with many countries previously considered friends or allies. Politics can have a significant impact on international business relations.
3. Conflicting Cultures
Any student of history can tell you how difficult it can be when there is a direct conflict between cultures. This is one area of study you can better understand when attending top-rated schools like Norwich University. While it is possible to do international business between conflicting cultures, it isn’t always going to be an easy endeavor, which may necessitate a bigger marketing budget to bridge cultural gaps. You must decide if the potential ROI is great enough to justify a greater investment.
4. Confusing Tax Codes
Not only are businesses subjected to ongoing changes in U.S. tax codes, but there are international taxes and tariffs to understand as well. It is suggested that before deciding on a new market to enter, you consider doing a bit of research on countries with the best international tax laws. Business relations are directly impacted by applicable taxes. According to US News, the five best countries to start a business would be:
Sometimes it’s a matter of more lenient tax laws and other times it’s the result of shorter waiting periods to obtain licensing and permits to operate in that country. Even so, do check out whether or not the taxes you will be responsible for will be acceptable in the long run.
Entering an international market as a new business or a branch of a United States corporation takes much thought and planning. These are just five of the key factors with a huge impact on international business relations. Before choosing a new market, do the legwork. Your ultimate success will depend on it.