Doing business in other countries can feel like it’s only becoming more complex for U.S. tech companies as they navigate issues like supply chain disruptions, changing geopolitics and growing digital regulations. Watching from afar, companies may think all they can do is react to these issues. But by engaging in tech diplomacy, they can more proactively understand and respond to what’s happening in other countries.
Many established U.S. tech companies already engage in tech diplomacy—but far more don’t. These companies could miss out on important insights that can put their international operations at a disadvantage, while also conceding to others without any say in what kind of business environment they want to operate in.Government foreign direct investment agencies have existed for decades to help industries enter new markets and find the best locations for expanding their operations abroad.
Geopolitical and technological issues combined with other events are also prompting countries to implement new measures on trade. In fact, the Boston Consulting Group found that OECD countries have more thanEngaging with tech diplomats and other government representatives can help tech company leaders stay on top of these and other changes and understand the implications for their business.
Likewise, if a company finds local or regional regulatory frameworks complex, it may prefer to locate its operations in a country that speaks English as its primary language to simplify compliance. Or they may want to zero in on locations where they can simultaneously benefit from both E.U.-driven efforts such as theLike other forms of diplomacy, tech diplomacy is about relationships. And in good relationships, communications go both ways.
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