Don’t Underestimate How Global Issues Can Affect Your Company

by Luis Gallardo

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3.  The U.S. Is Putting the Squeeze on Venezuela

Since the 1999 election of Hugo Chávez, the relationship between the U.S. and Venezuela has been consistently tense. The animosity has only grown since Nicolás Maduro took the helm in 2013. U.S. President Barack Obama recently enacted more sanctions against the country due to human rights abuses and declared the Venezuelan government “an unusual and extraordinary threat to the national security and foreign policy of the United States.” In response, more than 10 million Venezuelans signed a petition opposing Obama’s statement.

Small businesses should always note when the U.S. takes issue with another country’s government. This ongoing saga with Venezuela is reverberating throughout the South and Central American region, impacting trade, sales, and future relationships.

4.  Israel and the U.S. Are on the Outs

Although the U.S. has supported Israel for many years, the bond between the two countries is currently deteriorating. The Obama administration recently criticized Israeli Prime Minister Benjamin Netanyahu’s stance against U.S. nuclear negotiations and also voiced its displeasure regarding Israel’s refusal to support a two-state policy with Palestine. This was followed by a general push throughout Europe to boycott Israel.

The relationship between the U.S. and Israel doesn’t show any signs of improving, and it will certainly have a large impact on the global economy. Take note, small businesses: Tensions in the Middle East always affect international trade relations and the general economic climate.

Matters occurring in countries you never plan to do business in can still impact your company and industry. It’s your duty as a business leader to keep your competitive edge by staying up-to-date on world news, watching the issues unfold, and preparing your company for the fallout.

Related articles:

Why the Global Economy Matters to Your Small Business

5 Global Trends Impacting Small Businesses in 2015

Cross Border Business Risks Pursuing Opportunities Abroad