When entering challenging markets, large Western companies often operate in proximity. This creates a de facto ecosystem where participants share similar operational norms and contractual expectations, reducing friction and risk for all involved.
Learning from the struggles of Alibaba and Tencent, a new generation of Chinese AI companies will proactively establish headquarters in neutral hubs like Singapore. This strategy is designed to shed their identity as purely "Chinese tech," making them more palatable for global markets, acquisitions, and IPOs.
In unstable environments, adherence to Western standards for food safety and anti-bribery isn't a burden but a key differentiator. It attracts other multinationals as customers who value reliability and predictability, knowing contracts will be honored without illicit payments.
Modern multinationals avoid the high cost and risk of securing foreign markets themselves. Instead, they 'draft' behind the U.S. government, which uses its diplomatic and military power to create favorable conditions. This effectively socializes geopolitical risk for corporations while they privatize the profits.
For global expansion, view countries as having unique attributes like players on a sports team. Outsized returns come from matching your business to a country's inherent 'raw material' strengths—such as leveraging the US for its market liquidity, or Australia for its abundant land and sun for solar projects.
To manage a global business across diverse markets, build a single platform with enough built-in flexibility to meet local regulatory and cultural needs. This avoids the massive overhead of redeveloping features for each market or maintaining a complex, fragmented system.
Instead of exporting goods subject to tariffs, a growing number of Asian brands like Jollibee and Luckin Coffee are establishing a physical presence in the U.S. This strategy of direct investment in American retail and operations represents a significant shift, creating a "win-win" that is less vulnerable to political trade disputes.
Counterintuitively, the more complex a deal—spanning multiple countries and legal systems—the more suitable it is for a relational contract. Instead of attempting to codify every eventuality, this approach establishes a shared corporate culture and flexible principles that can adapt to unforeseen challenges, effectively trumping national or legal differences.
European firm Permira successfully entered the US not by just opening an office, but by relocating its top talent, empowering local decision-making, and accepting years of minimal activity to build relationships and market knowledge before scaling.
The Netherlands was an ideal starting market due to high construction density (short travel to pilot sites) and a single, nationwide building code. This homogeneity simplified product development and testing, unlike fragmented markets like the US or Germany, accelerating learning loops.
Geopolitical shifts mean a company's country of origin heavily influences its market access and tariff burdens. This "corporate nationality" creates an uneven playing field, where a business's location can instantly become a massive advantage or liability compared to competitors.