Pros and Cons of Running a Business Internationally


Advances in technology have meant that business owners are able to expand and grow beyond their immediate areas. Even the smallest of companies can reach customers globally thanks to their utilization of social media and company websites.

Going international has plenty of benefits such as increasing your target audience, and thus, your potential profits, and it reduces the risk that comes with depending on a single market. However, it also has its challenges, such as cultural disparities or language barriers.

Here are some of the pros and cons of taking your business across the globe — read on to find out more.

The Cons

Currency fluctuations can impact profits.

Conducting business in multiple currencies can cause serious complications as exchange rates can fluctuate wildly depending on the time of the transaction, the payment platform used, and the type of bank account it is paid into.

There can also be additional charges on foreign currency exchanges which can cause a further dip in your possible profits. Check out this guide to multi currency payment processing to help you get your head around the whole process.

A country’s politics can also affect your business.

International politics is a very different world from your own country – some governments can seize a profitable foreign business operating in their territory if doing so would be in their best interest.

Some countries also put restrictions on ownership or even on the areas or industries in which foreign businesses can operate thus negatively affecting how they run and the profits they make.

The Pros

Improve the visibility of your brand.

Brand visibility expands along with the expansion of the market, and this increased visibility then makes it easier to expand into new markets and improves your position for negotiations with distributors or other third parties.

Better revenue due to increased exposure.


Thanks to the increasing growth in technology, such as the internet and associated communication channels, it’s much easier to bring an international sales force on board, which can aid your marketing in a way that had not been possible before.

Your business can market itself on a local level across any part of the world. This improved localization can increase your customer loyalty, foster greater relationships, and achieve overall growth in sales and profits.

Less vulnerable to changing trends.

The pattern of business changes constantly due to the impact of politics, cultural changes, economic fluctuations, and new product releases. If an unfavorable trend emerges in one market, then this can have a huge effect on all the businesses that operate within this market.

When these changes occur, customers mostly act in mobs rather than as individuals, so once the tide starts to turn, then you can expect your target audience to follow it.

The benefit of expanding your business into other markets means you don’t have to rely on just one, which means you can arrange to move more inventories and reduce the possible risk to your company.



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