Intl Sales Consultancy Advice To Doing Buisness In Europe Emily Yt Chen200912

1. Know about yourself analysis<br />Business Nature: trading, manufacturing, services<br />Cost of capital<br />Capital intensive / Labor intensive / Knowledge intensive<br />Risk Appetite: Risk-lover or risk averter<br />Where is your customer and market?<br />Raw material:oil, energy cost: france<br />Know about doing business in Europe<br />Social-economic model - The Differences & the SWOT against the FDI Location Factors<br />• Attitudes towards business<br />• Employment regulation & Labour flexibility<br />• Legal systems & applications<br />• Tax structures & applications<br />• Government intervention & bureaucracy<br />Government intervention & bureaucracy Political, Government: Bureaucracy, Transparency, Stability, Financing Pecks, incentives to FDI.(Country Risks)<br />Economic: (Commercial Risks) (Currency Risk)<br />Local: <br />State of local economy, GDP, developing market: Slovakia, Czech ; <br />Tax structures & Applications : Taxes are part of Fiscal Policy, therefore under the control of the individual governments;Profit retention- incentives to FDIs - Variations in tax rates allow individual countries to make themselves more attractive to international companies, regarded by other countries as unfair competition. <br />Market factors & opportunity: size & growth, e.g. One single market bigger than USA. It’s now more unified with more openness, used to be fragmented.Expense and income stays in euro: What pays to employers in euro zone stays in as they spend in euro unlike US going out to pay for India/China workers.Germany vs France ties. Germany’s Exports is top 1 in Europe and among tops in the world. <br />Currency stability-EURO….are the euro members divergent fiscal policies supportable by the community as a whole ?<br />Cost of capital <br />inflation (exposure to global crunch: vulnerability indicators- govn debt, current account deficit, oil dependency, inflation—Turkey, Hungry, Romania, Czech ) <br />Regional: <br />FTA – European Union – Lisbon treaty: make EU better or worse?Anti-trust policyRegional Monetary Policy but different local fiscal policy ? can a “one size fits all” monetary policy resolve the different problems of the euro members ?<br />Market factors: size & growth – European Union, EU Zone, Developing market: Slovakia, Czech, GDP: UE 15: 26.6, UE 12: 12.9<br />Social: <br />Attitudes towards business in different countries : Business is there for profit or social well-being? (Cross Culture Risks)<br />National Culture’s impact on Attitudes<br />Values Behaviour Mentality from Immediate Environment, National Context, Other, indirect, Influences<br />Social Model: Our way is the best. Differences in <br /> Employment regulation & Labour flexibility<br />HR Skills<br />Different Cost of Labor: social security and other social costs, taxes; Corporate Social Responsibility cost, increasing demand of em. protection<br />Location, land and facilities: Wage rate differences & labor mobility: workers in lower-wage countries will migrate to higher wage countries. <br />Language<br />Environment: <br />Infrastructure- Europe has sound air, road, waterways infrastructure: railway, waterways which is cost-competitive and convenient in particular favor for weighty merchandise.<br />Legal systems & applications: IP, stability, legal system<br />Find the perfect match:<br />Does going into Europe fit your business model?<br />Access to your customers?<br />Gain advantages? Arbitrage strategy<br />Companies can obtain Financial & Logistical support from both sides of the transaction:<br />• Through export support from the “home” government<br />• Through inward investment incentives offered by the “receiving” government<br />– Matching investment schemes<br />– Infrastructure provision<br />– Tax holidays or reductions<br />– Employment incentives<br />– Special regulatory or legal status or treatment<br />– Start up assistance<br />• Often competition between Areas, Countries and Regions allows companies to arbitrage the various authorities for maximum incentive<br />