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Political Influence While Starting A Business In India

As in any part of the world, political influence is highly essential to start a business in India. Especially if you are planning to start a multi billion business, some sort of political patronage is an absolute necessity. Not only for safeguarding the interest of the company but even to begin the process of getting the required sanctions, one requires hold in the high echelons of politics and administrative circles.

Indian society is highly plural. It is the biggest democracy in the world with multi party political system. In population, India is second to China, with nearly 1200 million people. This is the most important consumer market in the world. It is a fast developing world. India is the third largest economy in the world and second fast growing economy in Asia. It has the tremendous potential of development with huge intellectual human force. With all these advantages and the huge market potential, world super entrepreneurs are looking for business establishments in India. With the overcrowded population and the millions of hard working and qualified personals, India offers a very cheap work force to the world. Many have realized the business potential in India, started exploring the unique opportunities of investments.

During the last couple of decades, India has opened its market to world. It has absolutely become an open global market. Banking sector, Insurance sector and all fields of industrial and business are now open for multi national investment. Of course there are many obstructions to cross. And mostly all issues can overcome and establish business if you have the political patronage.

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Cultural Intelligence – How To Be Culture-Savvy In International Business

For those of us who travel and live in different countries on a regular basis, learning about our destinations is essential. What can I expect when I move? What will be different? What will I have to adjust to? What are the people like? How does their culture differ from mine?

These questions can go on and on. Some of us try to answer them by researching in libraries and on the internet; others go through cross-cultural training; and yet others tap into whatever expertise the online expatriate community can offer. All these sources are wonderful and they provide a wealth of information, however, they often form no more than just a base of the information required for us to become really knowledgeable about the culture, and particularly about the people we interact with.

The concept of cultural intelligence goes beyond the laundry list of do’s and don’ts. It provides you with tools that help decipher – wherever you are – what’s important to people you interact with, what makes them who they are, and what you can do to strike friendships, make business alliances, and establish partnerships. Cultural intelligence takes a more individual approach to learning the culture. After all, we are not made out of the same mould even if we were born and grew up in the same country. In fact, all of us represent a multiplicity of cultures – a mix of ethnic, religious, corporate, socio-political, gender and many other layers of cultures.

So, what are the tools that can help?

I. Be an active observer. I know this sounds simple but unfortunately in today’s world the life is so fast that we often rush and pay no attention to our surroundings. Yet if we stop and make it our objective to observe, it’s amazing how much we can actually learn. Just imagine that you have permanently perched yourself in one of those European sidewalk cafes where all you do is “people watch”. What do you notice? How do people interact with each other? Which situations bring up anger and frustration? Which situations bring up positive emotions? If you are new on the job, what is the corporate environment? Which professional habits are worth taking note of? Observing will help you learn more about your surroundings; will help you understand which issues you may want to avoid with certain people and which issues you may want to explore; and, finally, observing will get you in the habit of noticing the “energy” of your companions. This energy is one of the most important indicators of what’s really important to a person. What do you observe when you want to notice the energy? You want to pay attention to the (1) breathing; (2) body language (including mimics); (3) gestures; (4) voice; and (5) eyes (movement, look, blinking, direction).

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Principles of Global Investment – What Matters Most

Global Investment can be risky. Therefore, investors should have proper balance. There should be a good mix of countries and assets spread over to different sectors. This also means that the sectors and countries so selected to be a part of one’s global portfolio should be unrelated. This is supposed to reduce overall risk and maximize returns.

There are many risks involved with global markets especially the investments that are directed at emerging markets like China and India. These countries are still evolving. Their institutions are not yet fully developed and there are serious legal problems. Then there are cultural problems as well. In view of all these factors, one should take all the precautions while selecting companies and countries.

All global investments should be properly analyzed and planned. There should be an escape strategy as well. Investors also cannot remain invested for long. There are strong swings in these economies day in and day out. One should be prepared to react quickly in the face of any news. There could also be opportunities for making huge profits in the near future.

Any global investment requires proper risk analysis. Every global investor needs to specify the level of risk tolerance. One has to find ways of risk minimization by undertaking proper strategies of risk management. Some of the most popular methods of this are hedging and diversification

Another method is putting in trailing stop losses in place. Days of buy and hold strategy are over now. One should constantly take advantage of the fluctuations in capital markets of these countries. There will be numerous chances of reentry in these markets if at any time one is out.

One golden advice is that all available funds should not be invested in one place. Less than 10 per cent of a global portfolio should be invested in one country. Every one of us has heard the popular advice: never put all of eggs in one basket.

One should take charge of one’s investments by oneself. There should be a constant review and monitoring of investments. One may be better of by framing one’s own strategies. The only thing is that one has to invest some time in educating and training oneself.

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International Trade With Mexico – One Of The Most Trade Friendly Countries In The World

Since the implementation of NAFTA (North American Free Trade Agreement) in 1994, trade between Mexico, the United States, and Canada has tripled.

Mexico is considered the 12th largest economy in the world. Approximately 90% of Mexican trade is operating under free trade agreements with over 30 countries. Today, almost 90% of Mexican exports enter the United States and Canada and approximately 65% of its imports come from these two countries. (Statistics and details referenced from Wikipedia.com)

Mexico is one of the most trade friendly countries around the world. Listed here are some of the regions and countries engaged in free trade agreements with Mexico:

The European Union, Israel, Columbia, Venezuela, Bolivia, Costa Rica, Nicaragua, Chile, El Salvador, Guatemala, Honduras, Argentina, Brazil, Uruguay, Paraguay, Iceland, Liechtenstein, Norway, Switzerland, and Japan.

Mexico imports primarily from the USA and China. This offers excellent export opportunities for companies in the USA interested in locating new markets for food, beverage, textile, clothing, and other consumer durables products (automobiles, appliances, furniture, and electronics).

In 2000, the 31 states of Mexico represented the economic position of what China is today; a low-cost manufacturing capital for high-volume product production. Much like other countries, most of that manufacturing has now moved to China. The niche for Mexico today has changed to a center for manufacturing low to medium volume products with high complexity and size, such as medical equipment, network communications, and automotive/aviation components (data and statistics adapted from Wikipedia.com)

Mexico is not the lowest cost country for production (at least four times higher for labor than China). However, the offset in delivery wait time, lower shipping costs, and the ability for North American business people to speak with production facilities in the same time zone, is very favorable.

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