International Business Article On Brexit and What It Means For Us?

. In a recent poll, Americans feel (by a 4:1 margin) that the UK’s decision to leave the European Union is about anger and dissatisfaction.

The main reasons the UK voted out were: immigration and donation. The UK’s immigration is three times higher than the government-set targets. And in the EU, the UK is a donor nation…which means it contributes more to the EU than it receives in hard currency.

But what does all this mean for Americans? There are many international business videos that may offer advice. But how do we start?

Start with personal investing. Stock markets overreact to news like this, and a general feeling of insecurity can abound. Investors are looking for safe places to put their money, and right now, the UK isn’t one of those places.

Insecurity in personal finances breeds fear in business deals. Investment bankers have been reporting that deal flow has all but halted. If you are negotiating with a British firm now, you will be delayed or even stopped by the paralysis.

•Pound Down

As the Brexit process plays out, the British Pound will continue to drop against the relative value of the dollar. Hotels. British goods. Even companies. We can use fewer dollars. Thus, if your firm has a healthy appetite for risk, now may be a good time for an acquisition in England.

•British Recession

This is likely. And lets not forget what effect Greece had on all the world markets. Greece has 11.03 million people and the UK has 65 million (6.5 times larger). Imagine the effect a bad recession in the UK would have on world trade, stock markets, travel and interest rates?

•New nationalism

What is happening in the UK could happen elsewhere. Scotland and Wales have already made rumbles about staying with the European Union. Other countries are considering whether or not the EU is in fact a good deal for them.

•End of the British springboard

Many a U.S. firm has expanded internationally by first going to the UK. The thought behind that (right or wrong) was that the countries both speak English which cuts down on communication errors. Additionally, since England was part of the largest single market in the world, firms could gain a foothold there and expand into the continent. With the antagonism that accompanies the Brexit (after all, they are leaving a club) British goods may not be that welcome.

•Advice for US firms

Shore up your deals in the UK with contingency plans. Make sure you have a way out if recession or even fear take over in the negotiations.

Spread your risk. Make sure the the UK isn’t your only European ally. Investigate Scandinavia, The Netherlands and other countries.

Deal in dollars. Use the dollar for your base currencies in all deals. Pay the conversion fee but bank on the safer currency.

Remember, its a British decision, not ours. We can take the opportunity try to be politically neutral.

Work with countries on an individualized basis. Even if (e.g.) Sweden stays in the EU, remember that are still Swedish, with their own language, norms and value systems.

China Devaluing Currency And What It Means For Global Business

By now, everyone has seen the news that China has devalued its currency. This means the Yuan Renminbi is weaker. When you exchange currency, you can now buy more Yuan for each dollar spent. If China is really the world’s second largest economy, than the Renminbi (People’s Currency) effects world markets. China is always accused of currency manipulation. Who is to blame? Who can be blamed in international business?

This is being criticized by every foreign government and many businesses that trade with China. After all, if Chinese money is weaker, that means that US products sold into China become more expensive. Take the example of Mandarin Oranges for sale in China, but imported from the USA. An 8 kg box costs between $20 and $30. With the weaker Chinese currency, this could cost 25 percent more this year. Thus, the imported oranges are more expensive and the Chinese will buy less of them from the USA, critics say.

On the flip side, items we buy from China will cost less. Importers of (e.g.) Chinese toys will pay less. If the US importers keep the price constant, then the importers will benefit and make more money.

Here is the problem. If your firm is selling a price-based commodity to Chinese buyers (rice, soy, oil, hogs, corn, cotton, etc.) your sales may suffer because your price is too high.

But if you are selling iPhones or BMW’s, the higher price may not matter. Higher prices may even work as an advantage, because the products are more expensive and hence more prestigious. Are we really going to once again, blame currency instead of the real problem….our laziness to go after and service global markets efficiently?

Global Business Video – Who Gets The Best Deal In International Business?

The savvy leader is inclined to search abroad for any and all potential new markets for their product or service. New markets offer the possibility of increasing total revenue and/or decreasing the costs of goods sold, thereby increasing profits. Entering new markets may also allow a company to follow its existing customers abroad, attack competitors in their home markets, guarantee a continued supply of raw materials, acquire technology or ingenuity, diversify geographically, or satisfy the stockholder’s desire to expand.

In many cases, with many companies, it is survival. There simply isn’t enough domestic demand to keep many firms in business, without going overseas.Hence the need for International Business.

Once management has made the decision to expand and has determined the target market or markets, the next question is obviously, “how”. Selecting a mode for entering or expanding in a foreign market is one of the most crucial strategic decisions that can be made by a company. Weighing all factors and choosing the proper mode of entry can result in huge competitive advantages, while making a poor decision can lead to the demise of the company.

Often, international people without the knowledge base or the necessary contacts are tasked with “going international.” 99% of the time, they will fail.

Foreign market penetration can be done by a variety of different methods; each possibility should be assessed before the process begins.

3D Printing Podcast -Is There A Way To Keep Things Simple In 3D Printing Marketing?

Making things simple is complicated!

To speak plain and clear you need time and depth; like an iceberg – a quiet crystal peak above the waters holds centuries of frozen storms underneath. Complication becomes simple to us after a long journey of forgetting everything we learned in schools; forgetting, not ignoring. You make things simple when you bring people to understand them. To understand means to place things in accord with our mind, within its direct reach, self-evident. You understand that which resounds in images familiar to your mind and in commonsense words, which you are at ease to use. It’s why the 3D Printing Trade Association is always striving to simplify the message around 3D Printing.