Is it possible to internationalize during the pandemic?

6 aspects that change if your company wants to go global in the near future

2020 was going to be the year for your company. You had already decided to open a business abroad, move with your family to a new country, and grow your company even further. Then the pandemic hit, and your big dream was put “on hold.” As many aspects of our lives are being rethought, this is an excellent time to (re)plan your internationalization.

A bit of background…

For companies that are already internationalized, having operations in more than one country—despite the complexity of managing different environments—acts as a risk reducer. Why? Each country has established different protocols, and the pandemic has unfolded in varying timelines. This allowed companies to adapt and balance their operations according to the pace of the pandemic, minimizing potential impacts.

For companies in the process of internationalization, it is necessary to reassess their strategy in light of the new global market conditions. We will live in a post-COVID world with different assumptions. Companies must adapt to this before going global.

Entrepreneurs are asking themselves: “How can I recover my time and money during the pandemic? How can I accelerate my growth to make up for this moment?” Internationalization is undoubtedly one of the options that should be on the table.

Despite the short-sightedness of some Brazilian entrepreneurs, internationalization is a matter of survival. After successive economic crises in Brazil, it is clear that international operations shield organizations from overall collapse. Is there any doubt that the U.S. and Europe will recover from the crisis more quickly? Brazil will come a few steps behind.

Timing is essential for internationalization. Every crisis creates opportunities. It is important to understand that the global crisis also lowers investment costs in other countries. Office or retail spaces in prime locations tend to be cheaper, some international talents are in career transition, and production inputs may be more affordable—all of which facilitates setting up a business abroad. This combination of conditions in the business world is called competitive advantage.

In this article, I will address some aspects that the pandemic has changed in how we can internationalize our businesses.

The power of “Global Sourcing”

Global sourcing is the practice of seeking goods and services in the global market regardless of geopolitical borders. The pandemic forced companies, individuals, and governments to look anywhere in the world for solutions to their local challenges. The question is simple: “Who in the world can help me solve a given problem?”

Companies that sought to increase international visibility for their value proposition expanded beyond borders during the crisis (especially those linked to the “COVID-19 economy”: healthcare, digital services, food, etc.).

Global sourcing helped demystify aspects of international trade and break invisible barriers in business, such as prejudice about origin (e.g., “if it’s from Brazil, it can’t be good”). International logistics corridors were created to ensure supply security. Ports did not stop. This is important to understand how interconnected we are—and to convert clients into new markets.

Digital entry strategy

Global sourcing allows companies to explore digital tools and the internet to increase visibility for their products and services. This is the moment to “turn your company outward,” meaning to refine all aspects of your digital communication and products so they are accessible in the global market.

With the logistics sector operating normally, it is possible to start (or expand) export-based operations while preparing for full internationalization, considering the new post-COVID global economic landscape.

Reduction of the cultural gap in business

The fluent use of digital tools breaks physical and cultural barriers and establishes a new way of doing international business. Before the pandemic, the need for in-person meetings and negotiations was closely tied to trust.

For some cultures, nothing replaces face-to-face interaction: a firm handshake, eye contact, and confident communication are business rituals without a virtual equivalent.

However, distancing forced people to rely on technology to continue doing business. Technology brings people closer, and deals have been closed without leaving home.

People are learning to prospect and connect more effectively online, based on this trust in technology. This changes the rules of the game and reduces continental distances to just a few clicks.

Restrictions on international travel

This is not the time to voluntarily board a plane. The pandemic closed borders and created new travel policies. The International Air Transport Association (IATA) created an interactive map showing travel conditions worldwide.

For example, if you travel to Israel, you may need to quarantine for 14 days in a hotel before moving freely. The U.S. and Europe have also restricted entry for Brazilians for tourism and business. The creation of “safe zones” may expand mobility under pandemic control criteria.

If we look at the main internationalization routes for Brazilian companies, key investment destinations have closed their borders to Brazilians until the pandemic is under control locally.

However, the pandemic has shown that it is possible to develop business without traveling. Depending on your sector, you can handle remotely what was previously planned in person. For example, virtual roadshows are taking place, with business prospecting meetings scheduled via videoconference in intensive formats—similar to trips to New York or London, but without travel costs.

If your business requires physical presence, you can hire a local representative to handle tasks such as site inspections or receiving goods. Virtual tours can also help assess locations.

Expatriation

The good news is that some countries’ immigration departments have resumed activities, such as the United Kingdom and Canada. An interesting aspect is that many procedures have been digitized, eliminating the need for in-person document submission or interviews.

While you can move forward with bureaucracy, travel restrictions or visa timelines may delay relocation.

If you prefer not to move abroad now, you can hire a local employee to maintain your internationalization timeline. However, be cautious—some visa pathways require the entrepreneur to be the first employee, and hiring locally may close that option in the future.

Government digital services

It is not only immigration processes that have been digitized. Some countries in the Northern Hemisphere, such as the U.S., Canada, and the U.K., already allowed online company registration, licensing, patent registration, and tax processes. This makes it much easier to start operations and generate revenue without traveling.

This article shows that the pandemic has helped shorten international distances in business. Technology enables access to new markets without leaving home. Your global ambition is the fuel to turn your goals into reality and make your company international in the near future.

So yes, it is possible to internationalize during the pandemic. This is the time to plan and understand which processes can move forward according to the pace of COVID-19 to reach your goals. And if possible, stay home.

Raquel Kibrit Sznifer – Institutional Ambassador for England