Compliance with stringent, complex legal requirements, particularly homeland security and corporate governance, are essential elements to retaining and gaining access to this relatively robust market.
Failure to understand or follow applicable regulatory requirements has serious commercial and law enforcement consequences: impacting eligibility to do business with the government, obtain licenses, or participate in other government programs, as well as loss of non-government customers with a preference for suppliers with less tarnished reputations.
Companies seeking to increase their pace of globalization face a number of challenges. Regulations such as the “Buy America Act” restrict some from using the low-cost-country supplier strategies of their foreign competitors. Others do not have the necessary multi-national export control compliance processes.
Companies that do overcome challenges and globalize faster will gain leading positions in the growth markets of the future, which lie outside of North America and the EU. Globalization may introduce new risks and more complexity into the supply chain, but the strategies to meet these challenges are known. Winners will adapt, expand and execute these strategies more quickly and more effectively than their competitors, and in doing so, will lead markets that will drive growth.