Doing business internationally today may be more rewarding — and perhaps even more challenging — than it has been in recent memory. On the plus side, the world economy provides endless opportunities for businesses to grow and create new ways of doing business — and international supply chains are more efficient and more technology-enabled than ever.
But with U.S. trade policy uncertainties, global power structures shifting and long-standing treaties coming under new scrutiny, business owners are understandably unsure about what to expect as they enter into new business relationships with companies around the world.
We surveyed our international banking and foreign exchange business clients to identify opportunistic trends and uncover challenges that may affect those that do business internationally.
The results we received were informative. A few highlights:
• The top threat identified to initiating or expanding international activity was supply chain disruption resulting from “foreign retaliation to U.S. policy."
• The most important factors impacting a company's success internationally were: the value of the U.S. dollar; finding the right overseas partners; and the stability and predictability of political and economic conditions in foreign countries.
• Most respondents said they do not use credit risk insurance or guarantee programs when selling internationally because they don't feel there is a need for such backstops.
If you do business internationally now or aspire to do business internationally, this survey is a useful resource.
|In providing the information and opinions in this survey, City National is not giving you any economic, tax, accounting, legal or regulatory advice or recommendations, and is not acting in a fiduciary relationship with you. Before using or acting on such information or opinions, you should seek your own independent professional economic, tax, accounting, legal and regulatory advice and conduct a thorough and independent review of any transaction or strategy in light of your particular circumstances. The information contained herein is not intended, and should not be construed, as professional advice or the opinion of City National, nor as a recommendation of any particular approach. All loans and lines of credit discussed require credit approval. Transactions in foreign currency are subject to exchange rate and other risks affecting currency valuation.|