In today’s digitally advanced business landscape, cross-border commerce is becoming increasingly common. Now that multinational agreements are the norm, it is more critical than ever to adhere to international best practices.

CEOs should develop a comprehensive understanding of complex international laws and their intersections. They should also master the intricacies of cross-cultural etiquette. These skills are essential for enhancing global expertise and becoming a valuable asset to any management team.

Elijah Norton, Executive Chairman and President of Veritas Global Protection, knows a thing or two about running an international business. With operations across the United States, Canada, Chile, and the European Union, Veritas Global Protection is at the forefront of the vehicle protection plan industry. In this article, Elijah Norton shares some difficulties that come with running an international company.

Cultural Differences

Every country has a unique culture, language, arts, music, and social norms. For example, a cultural difference between the United States and Spain is the typical workday hours. In the United States, working hours are usually from 9 a.m. to 5 p.m., frequently extending earlier or later. This may not apply to other countries.

When planning to expand an international business to other countries, it is also essential to consider the languages spoken there. Whether product messaging can easily be translated into another language must be assessed; hiring a translator may be necessary.

Managing Distributed Teams

Managing employees who are scattered across the world is another challenge of international business. Some of the difficulties that can arise are language barriers, cultural disparities, time zones, and differences in technology access.

To establish and sustain a robust working relationship within any global team, it is crucial to arrange regular check-ins with employees. Companies should preferably use a video conferencing platform to enable real-time interaction. Research indicates that workers who have frequent check-ins with their managers are more likely to be engaged at work than those who don’t.

When teams are separated by distance, as was the case during the COVID-19 pandemic, effective communication is vital to ensuring that everyone feels involved and appreciated.

Challenges Of Currency Exchange And Inflation

The worth of a dollar varies depending on the country, and the value of the currency can fluctuate in relation to goods and services.

To prepare for international business, one must become familiar with the currency exchange rates between their country and the ones in which they plan to operate. Exchange rates represent the relative worth of two nations’ currencies.

For example, the current exchange rate from the Canadian dollar to the US dollar is 0.77, meaning that one Canadian dollar is equivalent to 77 US cents. Monitoring inflation rates, which express the yearly percentage increase in general price levels in an economy, is also essential. Inflation rates differ among countries and can affect the cost of materials, labor, and product pricing.

Keeping a close eye on these two rates will provide vital information about a company’s product value in different locations over time.

Brand Consistency

Establishing brand consistency and leveraging it in the global market is another difficulty for international businesses. Companies must continually solve distinct problems for diverse customers worldwide. Brand consistency encompasses factors such as functional language, logos, work culture, and other aspects that impact a brand’s growth. Developing a global corporate strategy is crucial to achieving brand consistency.

A company’s brand serves as its trademark and distinguishes it on the market. Maintaining consistency in deliverables poses another challenge to brand consistency. However, a successful business can enhance its brand recall value, resulting in exponential profit growth.

[Alt Text: A group of businesspeople like Elijah Norton walks down an airport hallway]

Compliance Issues

Tax compliance issues also arise when expanding a business globally. International businesses must navigate various business regulations, tax rates, and commercial fees across different countries.

Failure to comply with regulations can impede business expansion and result in significant compliance charges. Employers must conduct comprehensive research and complete the proper paperwork to adhere to ever-changing international regulations.

Talent Acquisition And Onboarding

An essential aspect of international expansion is recruiting and retaining talented employees. Competent and motivated staff possessing the necessary knowledge base and industry experience of the specific region are valuable assets to the organization. A lack of experienced employees who can serve as an anchor for that location can present challenges to your international expansion, especially in the case of venture mergers or acquisitions.

However, there are several challenges associated with recruiting employees globally for overseas operations. This includes the need to create a tailored onboarding plan for remote work, increased overhead expenses, and the requirement for extensive HR support. Additionally, hiring overseas employees can be tough due to differences in access to potential candidates, an issue not normally encountered in traditional offline work environments.

Supply Chain Risks

Managing the supply chain that spans national borders is among the significant challenges faced by international businesses. The intricacies of imports, exports, offshore shipping, and related logistics are governed by international laws and foreign legislation, making supply chain management a potential threat to international business, especially when sourcing products and services overseas.

International expansion should be approached strategically. A tailored supply chain strategy must be developed specifically with unique business needs and expansion locations in mind. This involves studying local trade regulations, external influences, existing supply chains, and the availability of local materials.

About Elijah Norton

Elijah Norton serves as the Executive Chairman and President of Veritas Global Protection. He is responsible for expanding Veritas domestically in the United States and internationally, as well as strengthening partnerships with business associates. He takes a hands-on approach to fostering these relationships and values, being readily available to Veritas partners.

Originally from Kansas City, Missouri, Elijah relocated to Scottsdale, Arizona in 2015 where he currently resides. He obtained a bachelor’s degree in political science from the University of Missouri-Kansas City.

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