Are You SURPRISED by Safetey Issues in Products From CHINA?

It should not be surprising to anyone that there are safety and quality issues with products from China. It has taken decades of struggles, negotiations, litigation, etc. to establish the quality and safety standards in the US. We have a large and well-developed industry that involves procedures, processes, reporting and inspections, as well as compliance and due diligence. Not only are there enormous governmental agencies and industry organizations, but the legal and accounting professions have also developed practices to address these issues. The costs of adhering to standards and inspection procedures add a significant incremental cost to the products.

The infrastructure and processes to assure quality and safety are not present or effective in developing countries, one of the major reasons why off-shore products are so much less costly. This is because of several factors, including the following: (i) There are so many important economic, social and political areas that require attention and funding in a developing society. Resources, whether financial or human or other, are stretched to capacity. (ii) Production goals and objectives are often placed at a higher priority to concerns about quality or safety. Also, as the powerful purchasers demand even slimmer profit margins for the producer, quality and safety concerns and the resulting costs are impossible to consider. (iii) Foreign cultures and corporate ethics may not focus on these issues domestically. We in the US have evolved this industry over time with consumers and workers fighting for protection, and only after production objectives in our own industrialization process were achieved. (iv) The corporate culture and political system operate differently.

If developing countries can not or are not willing to meet the safety and quality standards already achieved by consumers, then maybe critical manufacturing should return to the US. The cost efficiencies achieved by production in China are at much too high a cost in regards to consumer protection and quality of life standards that have been a major achievement and accomplishment for humankind.

GLOBAL INTEGRATION

GLOBAL INTEGRATION


Now that you are ready to launch your international business and you have a well thought-out business operations plan, you must make sure you are ready as a company. The integration of your global business encompasses the integration of your foreign business into the infrastructure that supports your existing domestic business.

The most important determinant of success in your global integration is that your company, at the highest executive management levels, embraces and fully supports your international efforts. The decision to expand internationally was determined from the assessment of its economic potential in relation to the economic benefit of your domestic business and other growth opportunities. That assessment was essential to your decision, but whatever the opportunity signifies to your company, it must be fully supported by the highest executive management level.

Business Strategy Integration

The basis of your business strategy integration will depend heavily on the international market research results. If you are addressing developing countries, that research is generally more complicated to perform and often less comprehensive and accurate then similar results in developed countries. Employing the correct individuals to do that research is critical.

The following areas of your business strategy must be integrated:

Ø Business Model

How you generate revenue, realize profits and incur costs must be integrated and coordinated with your existing business model, respecting both international and local elements. It is important to understand the dynamics of how your new international business plays a role in your overall business model.

Ø Business Objectives and Goals

The business objectives and goals of your new international business must be clear and have a specific role in the achievement of your overall company objectives and goals. Your metrics for revenue achievement, realization of profits and market penetration must be accepted and believed achievable by the entire executive team.

Operational Integration

All of your company’s operational processes, procedures and reporting functions must be changed to accommodate your international business. The international business must be managed at the same level of importance and focus to your company as your domestic business.

A determination must be made as to which operational responsibilities are performed centrally and which ones are performed on site at the foreign locations. The placement is primarily determined by where best the operational decisions can be made and the level of autonomy that you want to give to the international team. Some of the key areas of consideration are authority to:

Ø Make spending decisions
Ø Hire and fire employees and executives
Ø Create policies for the international business entity
Ø Commit pricing and customer obligations
Ø Handle local compensation
Ø Create shareholder obligations

Whatever structure you put in place, there must be clear objectives to be achieved and a reporting structure to periodically monitor progress and escalate issues.

It is important to note that the mere fact of doing business internationally will increase the number of areas where processes, procedures and reporting functions are required. This will add additional support structure to your company’s compliance activities.

The following are the major areas of integration:

Ø Management and Organization

Your management team must incorporate the individuals necessary to achieve your global objectives, at a sufficiently elevated position in your organizational such that they report to those with enough power in the organization to assure the proper attention and action. Your organization must include your international team in a manner suitable to your industry and corporate strategy, integrating the international functions in the appropriate departments within your company. In essence, while appropriately integrating the international functions, the international team must have a voice that will be heard at the appropriate management levels, and understood and treated as required to achieve success.

Ø Human Resources

Integration of the human resources function is a major component of your integration efforts. Company handbooks and policies must be as uniform as possible yet accommodate the legal requirements in each country. Markets are often chosen based on the availability of local talent, the facility and flexibility of hiring and firing, and the degree of employer-friendly legislation. This function is usually best placed within the international locations with overall guidance from the domestic corporation.

Ø Product/Services Development

As research and development efforts are performed at different global locations, it will be important to have competent local management guided by overall delivery and quality objectives from the domestic corporation. This is even more complex when centralized control of design and architecture is desired, and when the international development has to be integrated into work performed at domestic and other foreign locations. As with any successful research and development operation, effective communication and project management is the key to success.

Ø International Marketing Programs

It is vital that you have the correct marketing approach in each foreign operation. Local marketing talent must be employed that can fully understand the particular market, yet embrace your corporate culture and standards. The international marketing messages and programs for your products and services may be quite different than your domestic marketing messages and programs. Your value proposition and customer benefits may have a very different perspective because the buyers’ preferences and criteria may be entirely different. Your domestic operation may be best at providing overall guidance on corporate brand image but leave the product and services marketing to the international team.

Ø Sales and Distribution Channels

Just as with your marketing programs, it is vital that you have the correct sales and distribution channels in each foreign country or region. This is usually best managed by the international operation who knows best how to navigate the local culture and business contacts. They must be integrated at the domestic corporate level for reporting and issue escalation.

Ø Manufacturing

If manufacturing is going to be performed at an international location, you will need local people to manage it. They will be best at dealing with local regulations and suppliers. However, as with sales, requirements and reporting have to be coordinated at the domestic corporate level.

Ø Accounting and Reporting

Dealing with different accounting standards presents a challenge that must be met. Although the trend is to have increasingly universal standards there are still differences. The US has the GAAP standards and other countries have the International Financial Reporting Standards, which vary among countries. It is difficult to achieve uniform financials since each country has different legal systems. Reporting for Sarbanes-Oxley and other compliance requirements apply to your international operations as well. This function has to be pulled together domestically, with representative operations in each of the international locations.

Ø Compliance

There are compliance burdens that affect international business that must be integrated in all of your operational functions. Processes, reporting and education are vital in support of your compliance and necessary for the defense of your company should violations occur. The Foreign Corrupt Practices Act and anti-terrorist legislation must be understood by your domestic and foreign employees and third-party distributors, representatives, consultants and agents.

Although the inclusion of developing countries in your global expansion can contribute to the difficulty and complexity of integration, the appropriate integration of your international efforts is essential for the achievement of your goals and objectives. The ability of your company to adopt and adapt to a global business profile is crucial to your success.

HOW to do BUSINESS

HOW to do BUSINESS

In order to be successful in international business, you must understand the foreign business environment of the country or region where you intend to do business. This concept includes:

v General Social Culture

This encompasses all of the characteristics or ways of living of a particular group of people that are transmitted from one generation to another, i.e., religion, familial relationships, customs, significance of friendships, social norms, traditions, dress, etiquette, etc.

v Legal Tradition and Legal Concepts

The type of legal system and its historical development differ greatly among countries and regions. Basic legal concepts also vary. Examples: The significance of a contract and its scope are very different from that in the US. The concept of “grandfathering” your position or rights may not be an accepted legal concept in other legal traditions. Litigation and discovery are generally not as widely used or respected elsewhere as in the US.

Enforcement of legislation is frequently an issue. There are two concepts involved here. One being that developing countries often do not have adequate resources to enforce legislation, and the available resources are dispersed among numerous important and vital areas of development. Secondly, in many countries enforcement of legislation is inequitably applied.

v Business Structures

The type of entity depends on the local legislation. Foreign ownership may be restricted or limited; corporations may not protect against responsibility or liability; relationships may be controlled by legislation.

v Risk and Liability

The allocation of risk and liability is very subjective and cultural. Behind our legislation and juridical decisions lies a cultural determination of who should be responsible or liable for certain types of activities, personal or corporate. In addition criminality and punishment, personal and corporate, are cultural and may vary from the US principles.

v Government Involvement / Historical Role of Government

The direct or indirect involvement of government in business varies among cultures. Authoritarian regimes and governments in developing countries tend to be more involved in business, and can often change the business environment completely and drastically without protecting the status of business transactions or the ability of businesses to survive. Some governments facilitate, others impede business processes and growth. The historical role and type of government is important to consider.

v Attitude Towards Foreign Involvement and Investment

There is often a negative attitude to foreign investment and involvement, and nationalistic rhetoric when dealing with natural resources and access to domestic markets. This is a reaction to past colonial history, and the resulting control of the country by foreign governments, dependence of domestic economies on few commodities priced in the international markets, and the control of vital industries and natural resources by multi-national corporations.

v Taxing Principles

Basic tax structures for sales, income and inheritance might be entirely different from the US. For example, some income tax systems require reporting of all possessions as opposed to actual income realized.

v Employer-employee Philosophy

The relationship between employers and employees is very much based upon the culture of the country and the legislative protection afforded employees. The type of governmental regime will directly affect this relationship, i.e., socialist or communist regimes, as well as a governmental paternalistic attitude.

v Lobbying / Legislative or Political Advocacy

A formalized lobbying industry may not exist in other countries as in the US style, however influencing legislation or political outcomes still occurs as an industry in most countries.

v Ethics

Every culture has business ethics that must be understood.

v Business Processes

This addresses the general business processes and reporting requirements, as well as quality control concepts. In developing countries quality control is often not as developed a concept as it is in the industrialized world, and government agencies directing quality control severely lag behind global standards.


v Negotiating Manners and Style

Negotiating manners and style are very connected to social relationships and norms, as well as the character profile of the society.

v Education

The importance of and availability of education to the overall population is an indicator of development and a cultural characteristic as well.

The list is all inclusive and an adequate understanding is essential in order to know how to do business in a particular country or region.

Direct or Indirect?

Business in foreign countries is either done in a direct or indirect manner. In a direct approach, the American company would form a strategic alliance with a foreign entity or become a 100% owner of a foreign subsidiary. The strategic alliance could be in some form of a partnership or division of ownership of a foreign entity with the American company owning less than 100% of that entity. The determination of the percentage of American ownership is sometimes directly controlled by foreign regulatory prohibition, or by beneficial treatment available to entities with a certain percentage of foreign ownership.

In an indirect approach, the American company would enter into a contractual relationship with a foreign business or person(s). The role of the foreign entity or person could be one of the following: representative, distributor, agent, support provider. The most difficult issue in this relationship is exclusivity. The American company will be reluctant to enter into an exclusive relationship with an entity over which it has no control or which has no proven track record of performance. On the other hand the foreign entity will be reluctant to invest time and resources without the assurance that it will reap the benefits of its efforts. Getting the foreign entity to maintain focus on your company’s products and services is a major challenge. An important side comment here is the necessity of providing adequate support for your products in the foreign country, even if you are entering into an indirect approach of doing business.

Cost / Benefit Analysis

DIRECT

Benefits
v Growth Opportunities
v Higher Profit Potential/ Market Penetration
v Greater Control
v Cultural Understanding

Costs
v Higher Up-Front Costs
v Fiscal and Legal
v Management Issues
v Higher Risk
v Complicated Exit
v Financial / Repatriation

INDIRECT

Benefits
v Limited Investment
v Less Risk
v Quicker Entry
v Easy Exit

Costs
v Limited Growth Opportunities
v Restricted Profit Potential / Market Penetration
v No Control
v Branding
v Collections and Receivables
v Restrictions / Tariffs


Although some if not most of these factors are present in all international transactions, they take on a different and more intense perspective in developing countries. Additionally, the direct presence is often very important in developing countries. Historically due to colonial exploitation, developing countries value the commitment and investment that a foreign company will make by establishing some aspect of their business in that country. In addition by establishing a presence, that entity can assist in the enforcement of legal protections for its business. For several reasons, the eventual costs of an indirect approach might far outweigh the benefits, making the direct approach less costly in the long-run in a developing country.

International Law

When working internationally there are three legal areas to consider. First are the US laws which will be applied domestically and also follow a US person or entity throughout the world. Therefore their reach includes your activities in a foreign country. Second are the international laws usual set forth in treaties or conventions. International law is law by consensus. Thus for international law to apply in a particular country, that country must expressly adopt and apply that law. Third are the laws of the country where you intend to do business. Legal concepts and traditions are different in every country. Therefore, when doing business in a foreign country, no assumptions should be made as to the enforceability of contractual terms or international laws.

“Who” Once Again

A very significant determinant of how you will do business in a foreign country goes back to who you have employed to fulfill your international goals and objectives. Whether your presence in a foreign country is direct or indirect, you must attain a certain level of trust and maintain communication with the entity and individuals. Those individuals must have an adequate understanding of the foreign business environment. The involvement of professionals that can bridge business cultures, integrate your corporate culture and recognize all of the complexities, nuances and differences is essential for success internationally.

WHERE to do BUSINESS

WHERE to do BUSINESS


According to Goldman Sachs, as we proceed towards 2050 strategic choices for firms doing business internationally become more complex, and being in the right emerging market becomes an increasingly important strategic choice. Although we have already seen major changes in global business and the effects domestically, significant measurable impact will begin to be felt by 2009. The landscape of leading economies will be quite different from today, including several developing countries in place of the current list of leaders.[1]

How Do We Determine Where To Do Business?

Most, if not all, global strategic analyses will include developing countries as necessary market targets or sources for goods and services. Although many of the factors included in this writing are applicable to more advanced economies, they encompass somewhat different characteristics when pertaining to developing economies. There are two basic areas of analysis: a Business Culture Spectrum Analysis and a Market Analysis.

Business Culture Spectrum Analysis

Developing countries can be analyzed and placed along spectrums of development, each spectrum pertaining to a specific area or relevant theme. These spectrums assist in the understanding of a country, its business culture, and its relation to other developing or emerging markets. As a general background, it is important to understand the basic political regime and market economy, and the recent past of that country in those regards. How far has the country progressed from a communistic regime or a dictatorship? Did the country experience colonialism and in what form? Is there a ruling oligarchy? Is there a democratic form of government? How controlled is the economic development plan? These are also crucial factors that are the context for the business culture.

Following are several concepts that are important areas to consider in the Business Culture Spectrum Analysis.

v Evolutionary vs. Revolutionary

Is the country experience change as an evolutionary process or are they still going through revolutionary upheavals? The achievement of evolutionary change is one of the greatest progressions that the more advanced developing countries have attained.

v Sustainable Governing Institutions

The appearance of sustainable governing institutions is a benchmark symbol in the solid progression of a country away from authoritarian forms of government.

v Regulatory Environment

All countries have rules, laws or regulations. The nature and extent of the regulatory environment will greatly affect the ease of doing business in a country and the associated risks. Countries that are more developed in terms of free market characteristics will tend to be less regulated than those that have planned economic growth. Areas to consider include employee relations and rights, taxes, capital availability, infrastructure, corporate structures, foreign direct investment, liquidation, energy, communications, defense.

v Government Ceiling

This concept has no real significance in the US. It means the point at which a business must consider the government in its operations, almost to the extent of being a partner. In order to grow any further past this point, government connections are important and relationships must be developed and maintained. In most developing countries this ceiling is fairly low.

v Legitimization

As countries move further into development, legitimization of government institutions and processes, economic policies, and fiscal controls occur. Some examples: The black market which may have been necessary for economic survival and growth is discredited or non-lucrative. Transparency begins to occur in all governmental and financial areas. Currency becomes stable and freely traded. Taxes and tax reporting is equitably enforced. Government administration becomes more efficient and equitable.

v Liberalization

A liberal attitude begins to develop towards business. Government strives to facilitate and not impede business growth and development.

v Rule of Law

Does the concept of rule of law exist in the country? This will directly affect the risks of doing business in that country and the form of entity a company may choose to employ when entering that country.

v Education

How strong education is as a development objective may determine how quickly or totally the market may reach its full potential or capacity. It also will be an indicator of the type of opportunities, resources and areas of development the country may experience.

v Reform / Key Social Drives

The actual reform directives and key social drives may indicate opportunities present in a given country. The manner in which those reforms are carried out may be indicative of their success, and thus the ability of the country to achieve its potential in the global market.

Market Analysis

This encompasses an analysis of the more traditional market factors, including the following concepts.

v Regional Penetration

A market study or analysis will help you determine which country should be targeted as the entry market for a particular region in regards to market considerations for your products or services.

v Infrastructure

Does the country have the infrastructure necessary for your business to achieve its goals and objectives? Infrastructure includes the ports, airports, roads and other means of internal transportation, telecommunications.

v Corruption Index

Transparency International, the global coalition against corruption, issues surveys and indices on world corruption by country. The corruption level in a particular country may affect your choice of where and how to do business.

v Management Team

The local management team is essential to achieve your maximum entry into a foreign market. You must be able to assemble a team with the necessary management and financial sophistication to understand your corporate culture, including your legal and accounting requirements, and the foreign business culture. Integration of both cultures is important. They must also have the necessary political and industry contacts, be able to manage and energize the sales and marketing team, be dedicated to your company, etc.

v Country Risk Analysis

A number of services evaluate the overall risk of doing business in a country, including an analysis of the political, economic and commercial risk. This information may be valuable in deciding where to do business.

Although several of these concepts may appear to be theoretical, they have very serious and direct implications for the products and services a company may wish to commercialize in a given country. They will also directly affect the analysis and decision of doing business in a particular country, or the choice of country through which a company may enter a global region.

The developing countries have tremendous social and economic obstacles to overcome in order to achieve their full potential in the global economy, and some are more advanced than others on the development spectrum. Regardless of specific outcomes, the global economy and global considerations have already changed most aspects of our existence, and will continue to do so.

[1] Goldman Sachs; Global Economics Paper No. 99, October 2003, “Dreaming With BRICs: The Path to 2050.”

WHO to HIRE

WHO to HIRE?

If you want to optimize your global business, you should be asking the question: “Who do we need to hire to achieve our international goals and objectives?”

Although international or global business embodies the same fundamentals that domestic business encompasses (i.e., if you buy or sell products or services, you are still just buying or selling products and services), it is much more complex, cumbersome and costly. The difficulty is even greater when you are working in developing countries.

Given the current and projected growth of several developing countries and that effect on your company’s competitive advantage or even survival, an important item on your company’s agenda for analysis is global expansion. To achieve your goals and objectives, and in order to penetrate selected global markets, you must hire or contract with the necessary individuals to heighten your chances of success. In terms of images, you are building a bridge between your company located in the US and an entity located in a foreign country. The steel and concrete of that bridge are the individuals and resources that you employ.

Good Communication is Essential

One skill or talent that all of the individuals on that bridge must possess is the ability to communicate. Communication is the most vital contributing factor to the success of your efforts. The type of communication is based upon the knowledge and experience of dealing internationally and, increasingly important, the experience of having done business in a developing country as a local. In addition, if you are dealing with a foreign language issue than obviously you will need translations. However, the translation you will need is not just a language translation. You will need someone who will be able to translate the essence of the business, the terms, the concepts, etc. To best avoid future pitfalls you should ensure at the very initial stages of your endeavor that there is a translation and deep understanding of all the business cultures involved by all parties.

What International Expertise do we need?

These are the individuals located in the US who have a great deal of international experience, plus a good understanding of or connections in the country or region where you plan to do business.

v Market Study Consultant

This is much more complex internationally, particularly in developing countries where information is not always available or complete. You may therefore need someone to conduct the study who has access to people in the industry in the country you plan to do business.

v Global Analysis Consultant

This is somewhat similar to a market study, but on a global scale, also including strategic analysis and planning.

v Trade Specialist

If you are exporting products, then you will need trade specialists to assist in export documentation, transportation, logistics, etc.

v Tax Planning Professional

In addition to your usual accounting and tax reporting, and depending on the corporate complexity of your business, you may need international tax attorneys as well as accountants with domestic and international skills for tax planning.

v Corporate Development Executive

The person for this role will help you develop your international strategy and corporate development, and is essential in the development and coordination of all of the international elements, including the other individuals described in this writing. He or she must be able to recognize the issues involved and be able to address them or involve the necessary professionals to assist. This individual is a very important element in your international bridge and the person you will rely on to achieve the proper communication.

v International Executive

The person for this role will help coordinate and integrate your international business within your corporate structure and governance. He or she is an essential element of your international bridge, will integrate your corporate culture and the foreign business culture, and work with the foreign divisions or offices to meet company goals and objectives. You may have several international executives depending on your size and geographical reach.

What Foreign Expertise do we need?

These are the individuals located in the country where you plan to do business

v Foreign Attorney

Each country where you plan to do business has its own legal tradition and laws. Although you may have qualified under certain international conventions or practices, international law is law by consensus. Therefore each country will determine whether it accepts and applies international law. In addition, contracts have different levels of importance and terms of enforceability in other countries, particularly in developing countries.

v Foreign Accountant
This accountant will understand the foreign tax structure and rules.

v Fiscal Agent

Depending on your foreign business presence, you may need a local representative with the governmental taxing authorities.

v Trade Specialist

If you are exporting products, then you will need local trade specialists to assist in import documentation, customs, logistics, etc.

v Foreign Management

This is a local business executive who has a deep cultural understanding of the foreign country including the business culture, is able to communicate well with your international executive and corporate development executive, is dedicated to the success of your business venture, has potentially necessary political connections, and knows how to achieve your goals and objectives.

v Market Penetration Leaders

These individuals have the necessary sales and marketing experience and skills to help you achieve your market penetration metrics in the foreign country or region.

The individuals that you hire to effectuate your global expansion are as important to the success of your endeavor as are the actual opportunities created by your product and service offerings. It may be more costly in the initial phases of your business to hire the recommended individuals; however their experience and knowledge will serve to avoid potentially costly pitfalls later in your transaction or business dealings at a point when extensive investments of time and resources, and possibly a contractual commitment, have already been made.

An INTRODUCTION to BUILDING A GLOBAL BUSINESS in the 21st Century

AN INTRODUCTION TO BUILDING A GLOBAL BUSINESS
In the 21st Century

There are two themes that have tremendously affected our lives and represent deeper economic changes and consequences. One of these has been the emergence in the past decade or two of the use of the term global. The second has been the progress of developing nations and the potential of their becoming economic powerhouses.

These themes have emerged as the result of a number of factors, progressions and developments, one such core factor being the advancements in communications, the enabler of such advancements being technology. We have seen enormous changes in the industrialized world as a result, yet we have seen even more tremendous changes in developing countries as societies have “leap-frogged” over years of development into a technological environment. The emergence of many countries from totalitarian regimes could be contributed in part at least to the inability of those regimes to control the communications and their effect on the awareness and empowerment of the individuals receiving the information communicated.

Although international business has always been an important factor in world economics and politics, the current use of the term global is an indicator of world dynamics in not only traditionally international or worldly arenas, but in most domestic aspects of our lives. Most issues, problems, trends, etc., have become global. The extent to which business has international components and the widespread nature or depth of that exposure has intensified. The great majority of businesses and commerce today rely to some extent on several international components. This tendency will only expand in size and importance as communications continue to span and shorten distances, and as developing countries and populations enter the global market place on a scale not previously witnessed.

The Arrival of Developing Countries

In a report published in October 2003[1], Goldman Sachs created an acronym used to identify the countries expected to grow economically to such an extent that they may become part of the group of the largest world economies. The countries cited are Brazil, China, India and Russia and the acronym is BRIC.

According to the World Bank, the GDP, population, population growth and surface area for 2005 are set forth below. A sobering observation in terms of the potential economic force and power of the BRIC countries is the combined population of these developing countries in relation to the US population and the effects this will have as they enter the group to top world countries.

GDP USD - billions

Brazil: 796.1
Russia: 763.7
India: 805.7
China: 2234.3
USA: 12,416.5

Population - millions
Brazil: 186.4
Russia: 143.1
India: 1094.6
China: 1304.5
USA: 296.4

Population Growth - annual %

Brazil: 1.3
Russia: -0.5
India: 1.4
China: 0.6
USA: 1.0

Surface Area - thousands sq. km.
Brazil: 8514.9
Russia: 17,098.2
India: 3287.3
China: 9598.1
USA: 9632.0


One of the most important factors is that the changes and development are occurring in an evolutionary and not a revolutionary manner, and at all levels of the societies. We have seen that revolutionary change more often than not merely changes the political scenery, maintaining the same economic and social condition. Following are several question that are important indicators of the evolutionary change occurring:

v Is there a free market economy?
v Is there a democratic form of government? What flavor is it?
v Is the currency free floating?
v Have governmental reforms created sustainable governing institutions?
v What are the challenges facing the government?
v What are the key social problems?
v What are the forces and objectives behind the reform?
v How strong is education in the culture?

These questions may appear to be theoretical; however the answers and emanating discussions provide direct and crucial implications for the products and services that will be successfully commercialized in a particular developing country. They are also essential to determine how and where your firm may choose to do business.

The global business culture is changing and will continue to change as the profile of the economic powerhouses begins to include countries now considered developing countries; where world economic leaders come from Brazil, Russia, India or China. There are several social, political and economic hurdles that must be overcome by these countries, and there are no guarantees as to performance, however the projections must be considered and the question posited as to what this portends for the position of the US over the coming decades.

Global US Businesses

As global macro forces evolve, US business people must begin to recognize and develop a global business profile. The first step is to recognize and accept diverse business cultures. The second step is to build international bridges. Each business transaction should consider and contain as a transactional cost the acquisition of the necessary knowledge and expertise to build bridges between the involved business cultures to ensure long-term success. This includes an understanding of the basic culture of a country or individual, but it goes much deeper into the appreciation of the business culture.

This series we will be addressing the basic areas that must be considered when building a global business in the 21st century. This series will include the following subjects and will outline the topics and concepts that must be understood and absorbed in order to be successful globally.

v WHO to HIRE
Communication, Communication, Communication

v WHERE to do BUSINESS
Strategic Analysis

v HOW to do BUSINESS
Understand the Foreign Business Environment

v GLOBAL INTEGRATION
Making Sure Your Entire Company Is Ready











[1] Goldman Sachs; Global Economics Paper No. 99, October 2003, “Dreaming With BRICs: The Path to 2050”