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When European Union (EU) decided to expand eastward into Poland, Hungary and Czech Republic, Brussels realized that many of industries in these countries could not compete with their counterparts in Western Europe. The reason? Their factories needed renovation and major modernization in order to compete.
The EU acquired these antiquated factories and offered them for sale for one Euro to any multinational corporation willing to invest millions of dollars needed for modernization. After multinational corporation modernized plant, EU loaned corporation 92% of renovation costs of that modern plant, at a very low interest rate.
So multinational corporation acquired (with very low interest debt) a modern local plant with an already established local marketing network for 8% of costs of building a new plant in country. Their modernized plant also had tariff-free access to EU! I'm unaware of any of these investments that weren't fully recovered within five years.
Multinational corporations have regular access to funding opportunities unavailable to domestic companies. This "money for jobs" Government investment policy reduces multinational corporation's overhead, diminishes business risk and increases profits.
Tariffs Can Be Circumvented
Tariffs are taxes that inhibit growth of world trade. While trend is toward free global trade, tariffs still exist. However, there is always a way around tariffs for multinational corporations. For instance, if you want instant free trade access to both EU and USA, manufacture in Israel. If you have a low-tech product and want free trade access to EU, make it in Senegal, since they have a free trade agreement with France. The list of bypasses around tariffs is long and grows as NAFTA and EU expand.
Creating Hundred Million Dollar Multinational Corporation
Creating a regional multinational corporation requires an understanding of economic benefits of being a multinational corporation. They aren't hard.
It requires an understanding of tax and funding potential within your region of world. This is easy information to acquire.
Simply put, it's critical business information to ensure getting most for your production dollar.
The point isn't simply to raise some money by going public in States and using US Dollars and your shares to buy cash-producing assets. The point is being able to leverage your assets with incentives offered by local governments for purpose of maximizing your company's profits.
Then, you reinvest your increased profits by acquiring more cash producing assets. Your search for business success always includes new ways to use local government incentives, loans and grants to maximize your profits.
There are major tax and investment advantages to being a multinational corporation. Once you realize this fact, Beowulf Investments can help you develop a plan to take advantage of Government Mantra to create jobs. After 20 years in this business, we've learned unique ways to stretch your production dollar and expand your business more rapidly by doing so.
The specific tactics to employ these benefits to your multinational corporation should, of course, be reviewed by local Chartered Accountants and Tax Attorneys. You must be certain that local Government you choose applies job incentives in manner they claim.
To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]