Strategies for Western Business Leaders Abroad Amid Global Political Uncertainty: Insights from The Economist

While more than half of humanity will go to the polls in 2024, many Western business leaders based abroad have to deal with political situations and decisions that are not in their favor. The Economist emphasizing that many companies “They want to reduce their dependence on China and turn to India and Mexico”, two countries where recent political decisions are not necessarily favorable to business (increase in some customs duties and tax benefits for national companies in India, and nationalizations in certain sectors in Mexico).

In Indonesia, another destination for many Western companies, a populist has come to power. Uncertainty also affects closer countries, such as the United States, where the shadow of Donald Trump hangs over the November presidential election, or the United Kingdom, where Labor hopes to return to power, and even the European Union, where nationalist parties could win many seats in the June 2024 elections.

Against this, last week explains the strategies used by CEOs of large organizations based abroad:

Get advice: International companies are increasingly using specialized consulting firms, such as Dentons Global Advisors, McLarty Associates and Macro Advisory Partners, or well-known names, such as McKinsey or the investment banks Lazard and Rothschild & Co. including, former senior civil servants and members. of foreign governments, employed for the address book, explain to them which way the wind will turn.
Create the right partnerships : One of the popular strategies is to support your business with a local company with government support to enter the market without risking administrative problems. Thus, Disney merged its Indian operations with Viacom18, which belongs to Mukesh Ambani, close to Indian Prime Minister Narendra Modi. “TotalEnergies, a French energy giant, has merged with the Adani group, a conglomerate that favors Mr. Modi,” send The Economist.
Are you lobbying : In the United States, in Brussels and by all elected officials and political figures.

Grégoire Poisson, from Dentons Global Advisors, summarizes the situation as follows: “If you’re not sitting at the table where decisions are made, you’re on the record.”

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