How to Do International Business | Rules & Benefits 2022

How to Do International Business

The concept of Globalization is deeply rooted in the history of various human civilization. It refer to the growths & expansion of the scope of internationals economic exchange that is measured by trade & flow of Foreign Direct Investment FDI. It encompasses differents type of exchange as well as capitals, people, technology, idea, & effective institutionals practices.

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Rules international business

Differents countries have different guideline & rules that apply to international business. A company engaged in international business operation is controlled by both the host nation & the foreign country in which it conducts business. Company representatives are legally bound by the law of the country in which they operates.

It is almost impossible to cover all the law & rules that apply to all countries within the scope of this article. However, there are certain common rules that apply to companies that want to engage in international business :

Labor & Employment Law

Any hiring or subcontracting in a foreign country is subjects to the labor law of that particulars country. It is prudent to carry out a detailed study of the compliances & benefit that affect the hiring process.

International Trade Compliance

The expansion of a company beyond the border of its country invokes the national security & economic interest of the host country, as well as the country or countries of expansion. What product can be imported or exported, what are the current prohibition & what sanctions and approvals are required, need careful & detailed study. International trade law are tough on corrupt practices such as bribery of official.

Corporate structure for conducting business

Depending on what the proposed business is, the best applicable corporate structure must be decided. It could be in the form of setting up your own branch, a subsidiary, or workings with an internationals partner or representative offices. Each option is subject to its own cost, term & country tax consequences.

International Business Operation

As economies develops & grow, more and more opportunities are available for existing businesses to grow. The way to access these exciting new market & capitalize on these opportunities is through international business expansion.

Global Talent Acquisition

  • Hiring new talent.
  • A step forward in business developments
  • Availability of a multilingual employee
  • Access to a different skill set
  • Path to understanding cultural nuances to better understand the markets.
  • Easy navigation of the language barrier and etiquette.

Access to Foreign Investment Opportunities

  • Access to attractive financial incentives from developing
  • economies
  • Corporate Tax Deduction
  • Additional investment opportunities
  • Opportunity to develop new sources of income.
  • forge new connections


It is probably one of the biggest consideration during an international expansion. It is prudent to carefully examine the tax structures, what threat & opportunities it present, and what the tax consequences are of doing business in a particulars country.

Intellectual property

Trademark, patent, copyright or trade secret are part of a company intellectual property & its most valuable assets. Any protections for the same in the host country may not be applicable in another country. Sometimes it is expensive to secure & enforce the same right abroad. However, there are way & mean available to mitigate the risk through carefully crafted licenses, employments agreement, and others contractual arrangement.

Reflation & Expansion of International Businesses

Reflation is basically monetary policy that is designed to expand output & stimulate spending to curb the effect of deflation, which usually occurs after a period of economic downturn.

There are numerous ways to induce a reflation:

  • Tax Cuts
  • Infrastructure spending
  • Lowering interest rates
  • Changing Money Supply

All of these step are taken to ensure a boon to a declining economy, instill steady cash flow, and increase employment.

International Business expansions rely on these attractive lures to enter a country and establish their operations. Businesses take advantage of tax break, lower interest rates, & various other investment opportunities that recovering & growing economies offers. They also helps these economies to generate more employments.

Business Termination

It’s hard to talk about terminations early on, however, when venturing into international business expansion, it’s wise to consider an exit strategy early on. This can be very helpfuls for successful trading, should such a case arise. Closing a business can sometimes be a lengthy & expensive affair in some countries, not to mention the tax consequences & the right of creditor and employees.

Payments & exchange control

The international movement of money add complexities to a simple transaction. Foreign currency exchange law & control for more secure payment method are areas where getting the detail right is important. They can be expensive if not done right.


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