For the milestone 40th episode of Riskology by Infortal™ co-hosts Dr. Ian Oxnevad and Chris Mason are thrilled to welcome Frank Lavin, a Visiting Fellow at Stanford University’s Hoover Institution and a leading expert in international commerce.
This episode covers the challenges companies face when taking their business to new markets overseas.
Featured Guest: Frank Lavin
Frank Lavin works on Asia and trade policy as a Visiting Fellow at the Hoover Institution.
In the Reagan Administration, Lavin served on the National Security Council and the White House staff in addition to assignments in the State Department.
Lavin later served in the Bush (41) and Bush (43) administrations, in the latter as Ambassador to Singapore and Under Secretary for International Trade at the Department of Commerce.
In the private sector, Lavin served in senior finance positions in Hong Kong and Singapore with Bank of America and Citibank.
He is a columnist for Forbes.com and the author of several books, including “Inside the Reagan White House,” “The Smart Business Guide to China E-Commerce,” “Export Now,” and “Home Front to Battlefront.”
International Business Expansion
In a rapidly evolving global landscape, businesses aiming to expand internationally must adopt strategies that balance business opportunity with sound risk management.
Partnerships are also key to gaining a foothold in new markets, and utilizing local service providers can help bridge the cultural gap inherent in doing business in a new jurisdiction.
These partnerships can also help navigate the local business environment and mitigate risks associated with unfamiliar regulatory landscapes. Gaining insights based on local market intelligence, especially in regions with geopolitical fluctuations, is critical to your success.
It is important, however, to make sure you gain a deep understanding of who you are doing business with in new markets. Your new partners can make or break your reputation both at home and abroad. This requires conducting deep dive due diligence on key new partners to avoid any hidden risks.
Geopolitical Risk Considerations
In 2025, geopolitics will present an ever-expanding set of risk factors that require careful analysis and consideration before taking a leap into new markets.
Importantly, there are a lot of governmental and private sector resources available to help with the strategic planning process. Entities like the U.S. Commercial Service and state-level trade offices provide vital insights and connections that can facilitate market entry. Further, local banking and legal contacts can prove beneficial.
Finally, you should also consider conducting a geopolitical risk assessment of the planned expansion based on local, boots-on-the-ground intelligence.
By leveraging geopolitical risk analysis and the right market intelligence, companies can attain a competitive edge while minimizing risks associated with international expansion.
Key Takeaways:
- Adopt a Light Footprint Strategy for International Expansion
Instead of replicating your US operations in a new market, you should consider starting with scaled-down capital investment by outsourcing services such as logistics and distribution. - Utilize All Available Resources and Networks
To facilitate international business expansion, leverage all available resources, including government agencies and private sector service providers. It may seem straightforward, but understanding the new market conditions before entering will strengthen your operating model and help you avoid significant risk. - Evaluate New Markets with a Risk-First Mindset
Rank potential foreign markets in terms of risk when deciding where to expand your business first. You may want to first consider lower-risk market entry points and build from there.
Tune in to the latest episode of Riskology by Infortal™ to gain a deeper understanding of how to approach international business expansion.
Resources:
Frank Lavin on LinkedIn
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
