Foreign policy shapes more than simply politics and many different parts of everyday life are influenced by foreign policy, including business. Foreign policy shapes every business a great deal, whether these are small start-ups or large institutions, and influences every decision that business owners have to make, from pricing to their inventory and product lines. However, one of the major issues that businesses face is that foreign policy changes all the time according to the geopolitical climate, as well as the administration that their business is currently operating under. Read on for more information on how foreign policy influences and affects businesses across the globe, and what you should be prepared for if you have a business of your own, as well as what you can do if you are interested in learning more.
How does foreign policy shape businesses?
One of the top ways that foreign policy shapes businesses is that it impacts the pricing of the products and services that certain businesses offer. For instance, if foreign policy means that tariffs on imports are increased, this means that supplies and stock increase in price, which then has a knock-on effect when it comes to the RRP. Although customers will only see the price hike, they will not often know the cause of this. This can then often reflect poorly on business owners, even if they are simply trying to maintain the price margins that they were able to have previously. Then, as a business owner, you must be as transparent with customers as possible when it comes to explaining the cause of certain price increases and the issues that your business may be encountering. This will then ensure that your customers are more content with the price increases and for the reason behind these.
Not only this, but foreign policy can shape the countries that companies expand into and the other businesses that companies do business with. This is because if a foreign policy makes it too difficult or expensive to do business in a certain country, business owners may make the decision not to export their goods to this country at all and might instead choose to expand into a country that has more relaxed foreign policies. Then, foreign policy influences businesses as it can prevent them from making the decision on what country to expand into based on interest and their own statistics alone. This might mean that people from certain countries are limited in terms of the companies that they can shop with within some key industries.
It can also change the competition that businesses face within their industry, either meaning that they have to compete against many other strong businesses for customers or leaving them with a lack of competition from global businesses. This is because foreign policy can make it easier or harder for a company to do business in a certain area. However, a lack of competition is not always a good thing, and this could suggest that there is a lack of demand for the products and services that a business sells.
How might foreign policy impact your business?
If you own your business, you may be worried about how the foreign policy of your own country will impact your business, as this is something that is out of your control. However, every business, however small it is, is often impacted by foreign policy, whether you are a global business or not, and it is important to be prepared and to understand how foreign policy affects even the smallest parts of your company.
For instance, you may have to start filling out more paperwork to stay compliant with the rules and regulations, and completing simple tasks such as exporting and importing goods may become complicated. This can make your company less efficient and can take time away from the more complex tasks that you need to perform. However, there are some apps that can help you to keep on track of changes in foreign policy and which can help you to work out and understand what steps you need to take to keep your business on the right path.
You may also have to start searching for different suppliers that deliver to your country, as, if your country’s foreign policy is not advantageous, you may find that your stockists and suppliers stop operating within the country that you are in. It can be difficult to find a supplier that you trust, and so having to find a new one within the country that you are based in can be difficult. Additionally, you may be the victim of shipping delays as border checks and documentation increase, and this may make it difficult to fulfill orders on time and to give your customers the experience with your company that they want and deserve.
Not only this, but many people outsource their operations abroad as it is cheaper. For instance, many business owners manufacture their products abroad and then import these into their home country to then ship to their clients. However, you might have to start to think about bringing all of your operations back to your home country if the cost of completing these operations abroad rises, such as if it is becoming more expensive to transport your goods between countries.
It can also change who you can do business with, as foreign policy may create barriers that prevent you from working with companies in certain countries, bringing an end to your international relations. Then, you may want to ensure that you have multiple streams of income and that you do business with multiple different companies across the globe to ensure that any changing foreign policy does not make your business go under and that your business can survive the changes that it has to go through to remain in line with changing foreign policies and the political climate.
You may also find that interest in your business and your profits drop dramatically after a change in foreign policy and that the stocks in your business crash, especially if you are well-known for your international relations or if you are operating out of a company whose foreign policy has recently changed and has limited your proceedings. Customers want to know that they will have an easy experience buying from your business and that they will get the products that they have ordered. This means that if their orders are going to be held up by delays at the border and shipping concerns, they may decide to take their business elsewhere and avoid doing business with your company in the future. Then, it is paramount that you ensure that your company manages changes in foreign policy well and that you are able to contact your customers and answer their queries clearly and concisely. This will then ensure that they believe that they are still in safe hands and that they will still be getting a great experience with your business. You will also have the opportunity to tell them directly of any changes that may affect them and what this means for their orders, and their experience with your firm.
What can you do?
If you want to find out more about the potential impact of foreign policy on your business, you should look at Foundation for Defense of Democracy surmises, whose investigative journalism and think tank approach can help you to better understand the foreign policy that might impact your business and what this means for the future of your company. They also host many events and conferences each year that you can attend if you want to understand their ideology.
You do not have to own your own company to get involved in the world of foreign policy and business, though. If you are interested in finding out more about the type of work that this think tank does and want to get involved, you should look out for job opportunities that might suit you and might allow you to discuss how foreign policy has shaped the world of business and how it continues to do so now. This will enable you to then make a difference and to carry out your own meaningful research and work that can help you to get to the bottom of the current issues with foreign policy and businesses today.
It can be difficult to understand how foreign policy shapes the business world and even your own business. Foreign policy impacts every business in some way or another, even if you do not notice it, and will continue to do so for a long time to come. Then, understanding how foreign policy impacts businesses is vital if you work in the business world, regardless of whether or not you own your own company. This guide has explored some of the key areas that foreign policy impacts and what you can do to stop these from completely overturning your current business processes and the success of your business.