Doing International Business Internationally

Written by William Cate


Doing International Business Internationally By William Cate July 2004 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Internationalism is Anti-American.

Surveys have shown that geographic ignorance among educated adult Americans is so widespread that many Americans are unaware ofrepparttar existence of most ofrepparttar 112440 countries ofrepparttar 112441 world. As a total population, Americans are, quite possibly,repparttar 112442 most insular of all developed nations.

The three thousand or so American multinational corporations are a monument to knowledge and reason over culture. Any proposal with a global vision isn't an American proposal.

Why Globalize?

The reason to globalize is that you can chooserepparttar 112443 best business tools to create almost anything inrepparttar 112444 Global Village. Business tools can be found in every country inrepparttar 112445 World. The opportunities to apply these business tools exist everywhere. The quality and variety of business tools vary by country. The ability to use specific tools is a function ofrepparttar 112446 knowledge and ability ofrepparttar 112447 tool user. Thus, inrepparttar 112448 Global Village no strategy is American, British, Russian or Chinese. International Business seeks to userepparttar 112449 best possible business tools to create successful multinational corporations.

I know that it's often difficult to change our thinking. We tend to continue doing things "the way they've always been done." We tend to lose sight ofrepparttar 112450 fact that other countries and other cultures have also found good methods of doing business, in those specific cultures. And oftenrepparttar 112451 only way to be successful in doing business in such cultures is to adapt our way of thinking to that of our Global Targets. So don't "think American" or "think British" or "think Asia" when planning to expand. "Think Global."

Sample Tools

There are many ways to do business inrepparttar 112452 Global Village. You can control taxation, ensure payments in a liquid currency or adjust individual or corporate citizenship. You can better manage corruption and bribery issues as a multinational corporation rather than a local domestic corporation. As a multinational corporation you can reverserepparttar 112453 role of government and haverepparttar 112454 government finance your corporate growth rather than having your company financerepparttar 112455 government.

The Money Tool

A vital business tool is a company's ability to secure a permit to print their own money. Printing corporate money tends to expand your corporate options while reducing your risk. You get your money- printing permit by taking your company public in any country with a stock exchange. If you are a domestic company in Sri Lanka, you can register your shares and trade onrepparttar 112456 Colombo Stock Exchange (CSE). Your shares will be freely convertible intorepparttar 112457 Sri Lanka Rupee. But, who wants Rupees outside of Sri Lanka? So, a listing onrepparttar 112458 Colombo Stock Exchange reflects a corporate policy to remain a Sri Lanka domestic company. While this decision lacks global vision, it may berepparttar 112459 best decision forrepparttar 112460 Sri Lanka owners ofrepparttar 112461 CSE Company.

Why Private Company Owners Sell to Multinational Corporations

Written by William Cate


Why Private Company Owners Sell to Multinational Corporations By William Cate July 2004 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Your multinational corporation's mandate is to buy private companies. You want to build your public company's revenues to US$100 million/year. Then, you'll sell it to a stronger multinational corporation.

Why would any private company owner want to sell their private company to your multinational corporation? Why would any owner of a private company accept publicly traded shares for their assets? The answer is simple. You are offeringrepparttar sellersrepparttar 112439 best possible price and terms for their private company.

You Are Paying a Multiple ofrepparttar 112440 Value of their Private Company's Balance Sheet Value

Assuming that 75% ofrepparttar 112441 private company sale was in publicly-traded shares,repparttar 112442 sellers received anywhere from 75% to 150% more for their company than they would selling to another private buyer. On average, you are offering twice as much money forrepparttar 112443 private company as other buyers.

You Are Payingrepparttar 112444 Seller in U.S. Dollars

The American Dollar is one ofrepparttar 112445 five world currencies. It's freely convertible into any other currency. It's accepted almost everywhere inrepparttar 112446 World. The national currency, used by a private buyer, is often only acceptable inrepparttar 112447 country ofrepparttar 112448 buyer and seller.

The Seller Can Be Paid Anywhere inrepparttar 112449 World

Subject to local laws,repparttar 112450 seller can be paid anywhere inrepparttar 112451 world. This means they can accept payment in a country that doesn't tax foreign-source income.

The Owner Hasrepparttar 112452 Option of Working forrepparttar 112453 Multinational Corporation.

Selling a private company doesn't necessarily mean retirement forrepparttar 112454 owner. It can mean managerial involvement inrepparttar 112455 multinational corporation.

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