The Outlook for Global Business Remains Strong
November 8, 2022
Is your organization hesitant to expand globally since the pandemic? Are current geopolitical tensions forcing you to reconsider your strategic planning and expansion initiatives?
According to our bi-annual global sentiment survey, gathering responses from over 150 business executives, global expansion is still viewed positively. Despite fears of protectionism, globalization is still alive and well, albeit with new adaptions. More than 70% of respondents will continue or plan to increase international activities over the next six months despite the potential setbacks.
If you’re waiting for better market conditions, opportunities are always discovered during times of disruption. The global economy will continue to evolve, prompting you and your organization to assess your strategy for market expansion. Read more about why going global makes sense for your business.
Read on for some key highlights of our latest survey.
Question: Based on how respondents view the current global economy will fare in the next 6 months, is international business good the respondent’s organization?
Nearly 78% believe that doing international business is good for their organization based on their forecast for the current global economy over the next 6 months.
While a failed expansion attempt is always possible, they often arise due to poor organizational planning since nearly 78% of respondents believe that participating in international business is suitable for their organization.
This also points to the fact that not all organizations are ready for expansion despite the current conditions. Test your global readiness in just a few minutes.
Most respondents believe they are in a good position to take advantage of current global conditions. In fact, 76% do not agree that it is too risky to do business with international counterparts.
If you remain hesitant to expand business operations with everything going on in the world, working with an experienced partner can help calm your nerves. With nearly 70% of respondents having a positive view of their organization’s global performance, it is clear that some organizations have adapted to current conditions and are finding opportunities to grow.
International expansion offers a multitude of opportunities but is only tenable for those willing to conduct proper strategic planning and take a calculated risk.
Going global is not easy, nor is it the right strategy for every organization. However, growing globally is often vital to remain competitive and achieving new growth. It is also often mutually beneficial to you and your business counterparts. With the seemingly endless disruptions, our survey uncovered key insights reflecting the importance of adapting to the global market.
To weather current global conditions, we found that continuing, or entering the international business is beneficial because greater connectedness and collaboration lead to innovation – and the need for innovation is greater than ever to adapt to environmental changes. Despite mixed sentiments on current global macroeconomic conditions, respondents still share enthusiasm for continued international activities.
Innovation will lead the way to stronger global business environments.
Below are sentiments on the world of global business today, ranked by most selected responses.
Most survey participants agreed that the impact of public health crises and geopolitics on trade and the supply chain encourages greater innovation to do business globally, as well as create new international alliances.
The major disruptions over the past few years have demonstrated the staying power of numerous international companies and the emergence of new ones. Disruptions can cause positive growth and innovation, but only if firms embrace the changing conditions. Despite global business disruptions, globalization is here to stay.
Download the Factum Global Business Sentiment Report. You can also watch the insights webinar and find more information on the survey.
The Factum Global Business Sentiment Survey was conducted in collaboration with Global Chamber.