5 International Expansion Buzzwords


Posted on: 05 June 2018 by Angelina Brown

The process of international expansion is rife with buzzwords, so here are the ones you need to know, and why they’re important for your business.

international expansionThe arduous yet rewarding process of international market expansion involves some challenges, so it’s advisable that you speak, and understand, the lingo. Words such as ‘compliance’, ‘legal entity’ and ‘due diligence’ are just some of the phrases you’ll need to be sure on, and know exactly what they mean before expanding your business abroad.


When you go global, the expansion of the company will require you to familiarise yourself with the rules and regulations of new market, and then to remain compliant with them. This could be the tax legislation of your target country, or it could be the local laws on what business travellers can and can’t do in the countries to be visited, and determine whether you need a visa.

Within Europe, a foreign (non-EU) national with a visa for one European country doesn’t have an automatic right to work in other EU countries, for example. This right is reserved for EU citizens. If you require a US citizen to live and work in several EU countries, they need the appropriate permission to do so, in order to comply with all immigration laws.

Immigration laws can be quite inflexible, and difficult to work around so it’s usually best to find an experienced adviser to guide you through the bureaucratic immigration process.

Foreign Legal Entity

A foreign legal entity is similar to a foreign corporation, it means an established corporation that’s legally registered to operate in a state or jurisdiction outside of its original location.

You’ll need it if you’re domestically incorporated in one location and want to expand internationally, in order to legally manage your company’s operations in other countries.

Due diligence

Due diligence will help you figure out the best possible strategy for entering your new market, and should be a part of your expansion process from the very beginning, when you’re researching and analysing your target market.

It will involve assessing the level of market interest in in your product or service, as well as the quality of the existing infrastructure in the market you’re expanding into.

Due diligence also involves looking to the differences in business culture and local customs that could potentially impact how successful the entry and establishment of your business is into international market, once the expansion is underway.

Failing to properly carry out due diligence can have massive consequences, even for the largest companies, so it’s important it’s carried out well to avoid complications before they arise, rather than having to respond to them once they’ve happened.


Outsourcing may sound straightforward, but in the context of international business expansion, it’s a crucial and often complex component. International growth requires the careful use of expertise and resources, including, in many cases, the careful outsourcing of both. What exactly you outsource and when depends on your company’s strengths, and which areas of the business struggle the most when under pressure.

It’s important to weight the cost of outsourcing against hiring people with niche expertise and skills; often, the former will save time and money.

Global supply chain

With international expansion, raw materials and supplier relationships will need to be managed on a much bigger, global scale, which comes with its own pros, cons and complexities. It’s important to be aware of the possible risks associated with having more parties involved and less information available at any one point in the production process.

There are many key phrases in the process of international expansion, which reflect the many new concepts your company will need to understand. You may want to consider seeking professional advice tailored to your specific circumstances, such as international expansion agency Galvin International, who can guide you through the entire process.

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Angelina Brown


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