International expansion can end up with the creation of one or various sales
delegations wherefrom, by area, the commissioned representatives are controlled.
The next step for successful commercial delegations is not necessarily to finish
manufacturing the product on the spot. The considerations that have to be taken
into account before productive
Foreign direct investment FDI surpass commercial decisions.
Various legal ways exist for their establishment, all of which are destined
to assure a steady presence with a rigorous tax control and protection of the parent company. We will analyze the 3 most frequent cases for establishment
from a commercial perspective:
- Branch of a foreign company
- Joint ventures
An analysis of the risk factors that influence those companies with
multinational operations in order to protect them against possible compulsory
purchase or by government take over.
The company should to develop a rigorous analysis of the risk factors
that influence those companies with multinational operations in order to protect
them against possible compulsory purchase or by government take over.
Example of the course Investments abroad:
Establishing a company in the United States. One company is made up
of 150 full time workers and manufacture bronze statues that are on a marble
support. The designs are exclusive and using them, they make a substantial
production of each one; even though it is a gift item with certain exclusive
value, they are pieces whose originals were produced in large quantities. In this case we will analyze eleven decisions taken by the board of directors.
We tend to associate developing countries with poverty and suffering.
This image is reinforced by the media because they inform us only about
disasters in these countries and present their people as victims of circumstances beyond their control. The reality of the developing world is a lot
more varied and complex. In the 1st place, one has to be careful with
generalizations. For example, the situation in recently industrialized countries
like Korea, Malaysia, China, Mexico and
Brazil is very different to less developed countries
like Bangladesh, Senegal, Ghana, Kenya, Morocco, Nicaragua, El Salvador and Peru. Besides, the situation in the developing World is not static. In the last decades, countries in Southeast Asia have gone through
significant progress in their standard of life, whilst countries from Sub-Saharian Africa are poorer
nowadays than they were in the middle of the 1960's.
The socio-cultural context of each developing country has prime
importance in the sale of a product. Religion, local traditions, history, superstitions, all these form part of a system of values that are called
The process in obtaining permits or licenses and establishing a business in a developing country can be as long as it is costly. Much of the government earnings come from such permits. The
trouble of corruption can also present itself.
Increasingly, the social balance of a company, demands new management
parameters of CORPORATE GOVERNANCE that are able to convert the companies
into real engines of development and well-being in the place they are operating
The situation in ex-Soviet Republics. Analyzing the actual situation
in The Russian Federation (Russia) implies analyzing a
series of points in a synthetic way, so much so that probably the different
points could be seen as headings. Analysis of the process of
reconstruction of industry in ex-Soviet Republics.
Entities of a multinational character like the European Union, the Inter-American Development Bank, the African Development Bank and the International Monetary Fund,
amongst others, Direct important quantities of economic resources towards social and Economic restructuring in developing countries, so that in this way they can
speed up growth. Therefore, one is transferring the "know-how" towards
countries in need of this knowledge.
On finishing this part, you will know:
- The different strategies to follow in order to set up a company in an International market beyond merely the sale of your products.
- The legal formulas that adapt better to investments, and we will analyze the decisions taken by a gift products company that established its commercial
branch in the USA.
- The troubles arising from establishing investments in developing countries.