Despite a more uncertain economic and political environment, businesses continue to look abroad for growth. But greater international reach also brings greater exposure to events beyond a company’s direct control. As cross-border activity becomes a larger part of business performance, companies are reconsidering how their supply chains, supplier relationships and international operations can support growth while remaining resilient to disruption.

For a significant share of international businesses, overseas activity is already central to their commercial performance. Globally, one in four firms expect more than half of their revenue to come from abroad in the year ahead. This rises to 33% in Portugal and 31% in the UK. When international markets account for such a substantial share of revenue, the strength and resilience of cross-border relationships become closely linked to the performance of the business as a whole.

Recent events have made that connection clearer. Border closures during the pandemic, conflicts in Europe and the Middle East, and disruption to major trade routes have exposed vulnerabilities in global supply chains. Yet these pressures have not prompted businesses to turn away from international trade. Instead, many are adapting how and where they operate, seeking to preserve access to international markets while reducing their exposure to individual suppliers, routes or locations.

Latin America illustrates this balance between opportunity and exposure particularly clearly. Almost two-thirds of businesses in the region (62%) say they rely on imports to produce goods or fulfil orders, while 57% are concerned about their reliance on cross-border trade.