The globe became smaller with innovation of the aeroplane. The local businesses are looking to take their profits to the next level by expanding to do business overseas. The growing entrepreneurs are looking for more ways to plant their business abroad. This might be because of tax issues and attractive labour. Or skilled workers from a certain country who are more developed to produce products or deliver services for the right price. Also expansion might be the cause that the companies establish out of their country.
One of the reasons might be expansion.
If your company made profits domestically and you as the business owner know that you can get more profits by hiring workers abroad that can produce an quality product for a relevant price that is affordable for your consumers. Then this is not a bad move. If you are going to expand your business globally then you can analyze the segement. Develop a business plan that will determine if products also can be sold locally. And are you going to sell your products for the same price as the local market price?.
The markets which are untapped can be a reason.
There are countries like Saudi-Arabia who sell for 1 billion US Dollars per day in oil to supply the need of the global oil market. Then you can not go there to set up shop to produce oil as an American citizen. That is too late for that. It makes more sense that a Saudi sheik set up shop in Texas to produce oil to supply the American market. Also former presidents Bush do this. It makes sense to find a product to produce in countries like India or Sri Lanka and sell for a higher price in the western countries. Brand names like Tommy Hilfiger and Columbia is produced in developing countries to help the local workers and the third world countries and to make higher profits through buying relevant cheap labour.
Tax issues can be one of the reasons.
There are money lending sites like Mintos.com, Quanloop.com and Twino.com that are established in countries like Latvia. This is pure of the lower income tax for businesses. And also the skilled workers who provide you a good service. There are workers trained abroad to handle these type of work. The sales force and management team is fully prepared with for the job with the qualifications to give the customers advice and in this case the profits. What clients want by lending these sites their money. Also the rules for these types of above mentioned busineses can be tough in the western countries. Because they are just starting out. This is not like well established real estate investment companies which ask you to come up with minimum 100 dollars per month and 2000 dollars within a year.
To get a bigger name.
If you want to grow in due time then you got to take actions to invest in your image as an International brand name. I think to grow as a brand you need to offer the best products for the attractive price. This you can be achieved by hiring highly skilled workers who are willing to give the best shot and your name will grow when the customers know that you got the know-how about the products you are selling. Setting up shop in a foreign country can get you name known locally. But if you focus on an International market then producing your products where the raw material is supplied easily and processed for the right price and shipped Internationally can generate you lots of profits. Dairy products are often produced in counties like Switzerland to ship worldwide. Milk powder for example. Also beef is produced countries like USA and sold to countries like China and The Netherlands. So establishing your company aboard can bring you growth and profits.
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