Growth in a Fragmented World: How Trade, Geopolitics and Emerging Markets Are Reshaping International Business

Rather than globalisation ending, it is being reshaped.
 

How is geopolitical uncertainty changing international business?
For many years, international expansion and supply-chain decisions were driven heavily by cost and efficiency.
 

Those considerations remain important, but businesses increasingly need to consider resilience, security of supply, tariffs, regulation, transport routes and political or economic disruption.
 

Global value chains are consequently changing. Businesses are diversifying suppliers, reconsidering where production takes place and, in some cases, moving activities closer to important customers and markets. (UNCTAD)
 

This does not necessarily mean becoming less international. It can mean becoming international in a different way.
 

Are emerging economies becoming more important?

Changes in established trading relationships are also creating opportunities elsewhere.
 

Developing economies are playing a growing role in global trade, with trade between developing countries expanding faster than the global average in 2025. Countries including Egypt, Indonesia, Vietnam and Cambodia have also been identified as emerging “connector economies” as global trade flows adjust. 
 

Businesses considering international growth may therefore need to look beyond the markets they have traditionally regarded as the obvious destinations.
 

New centres of manufacturing, technology, services and consumer demand are creating opportunities across Asia, Africa, the Middle East and other developing regions.
 

What should businesses consider before entering a new market?

Economic growth or market potential is only part of the decision.
 

Businesses also need to understand the tax, accounting and regulatory environment in which they will operate.

Questions can include:
•    How should the business establish a presence?
•    What taxes will apply?
•    Are there VAT, GST or other indirect tax requirements?
•    What accounting and reporting obligations arise?
•    Will statutory audit or assurance be required?
•    Are transfer pricing rules relevant?
•    How will profits, employees or transactions across different countries be treated?
 

Trade barriers are also becoming more complex. UN Trade and Development reports that regulatory and other non-tariff measures can impose greater export costs than tariffs for many countries. 
 

Why does local expertise matter in a changing world?

Greater uncertainty makes reliable in-country knowledge more important, not less. A business considering a new market needs advisers who understand both the formal tax, accounting, audit and assurance requirements and how those requirements operate in practice.

International associations can connect that local expertise across jurisdictions, helping businesses access appropriate professional advice while maintaining a coordinated view of their wider international activities.
SBC Global Alliance brings together independent tax, accounting, audit, assurance and advisory firms across multiple countries, combining international reach with the local insight businesses need when navigating an increasingly complex global economy.

Frequently Asked Questions

Is globalisation declining?

Not necessarily. International trade remains substantial and continues to grow, but trade routes, supply chains and investment patterns are changing.

Why are businesses diversifying internationally?

Diversification can reduce dependence on a single market, supplier or supply route while creating access to new customers, skills and growth opportunities.

Why are emerging economies becoming more important?

Changing trade patterns, investment flows, demographics and developing supply chains are increasing the role of many emerging economies in global commerce.

What advice might a business need before entering a new country?
Depending on its plans, a business may need tax, accounting, audit and assurance, VAT, transfer pricing, payroll, company formation and wider business advisory support.