Investments abroad Sales delegations Establishing companies

Summary

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 investments surpass commercial decisions.

Various legal ways exist for their establishment, all of which are destined to assure a solid presence with a rigorous tax control and protection of the parent company. We will analyze the three most frequent cases for establishment from a commercial perspective:

• Branch of a foreign company
• Subsidiary
• 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.

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 first place, one has to be careful with generalizations. For example, the situation in recently industrialized countries like South 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 considerable 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 culture.

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 problem 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 in.

The situation in ex-Soviet Republics. Analyzing the current 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 accelerate 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 establish 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 problems arising from establishing investments in developing countries.

Course sample:
 

Available Languages:

Master in Asia business - Master in Business with Muslims countries - Master in Emerging Markets - Master Executive in International Business, Global Marketing and Internationalization - Master Executive Business with Africa  - Master East and Southern Africa - Master Business West Africa and Maghreb

Investments abroad, Sales delegations, Establishing companies, Foreign Investments, Affiliated, companies, Branches, Joint Ventures, Expropriation risks, Reconstruction of industry, Foreign Direct Investment, FDI, Master, International Business