Reasons for Globalization

Most companies move their business operations to foreign countries by going global. They take their business overseas for different reasons. These companies adopt the reactive or defensive approach to stay ahead of the competition. A few of them take the proactive or aggressive approach to accomplish the same purpose. A majority of them choose to adopt both approaches to avoid a decrease in their competition. In order to remain competitive, companies move as quickly as possible to secure a strong position in some of the key world or emerging markets with products customized for the need of the people in such areas in which they plan to establish. Most of these world markets are attracting companies with new capital investments with very good incentives. Some of the reactive or defensive reasons for going global are:

(1) Trade Barriers

(2) Customer Demands

(3) Globalization of Competitors

(4) Regulations and Restrictions

In the case of trade barriers, companies move from exporting their products to manufacturing them overseas in order to avoid the burden of tariffs, quotas, the policy of buy-local and other restrictions that make export too expensive to foreign markets. Companies respond to customer demands for effective operations and product assurance and reliability, or/and logistical problem solutions. Most foreign customers, who seek accessibility to suppliers may request that supply stay local in order to enhance the flow of production. Companies usually follow that request to avoid losing the business. For the globalization of competitors, companies are aware that if they leave companies overseas too long without challenge or competition, their investments or foreign operations in the world market may be so solid that competition will be difficult. Therefore, they try to act quickly. Most companies’ home government may have regulations and restrictions that are so inconvenient and expensive, thus limiting the expansion, encroaching in the companies’ profits, and making their costs uncontrollable. Hence the reason for the companies moving to different market environment with few foreign restrictive operations. The proactive or aggressive reasons for going global are:

(a) Growth opportunities

(b) Economies of Scale

(c) Incentives

(d) Resource assess and Cost Savings

Many companies will prefer to invest their excess profits in order to expand, but sometimes they are limited because of the maturity of the markets in their area. Therefore, they seek the overseas new markets to provide such growth opportunities. So, these companies, in addition to investing their excess profits, also try to maximize efficiency by employing their underutilized resources in human and capital assets such as management, machinery, and technology. Companies seek economies of scale in order to achieve a higher level of output spread over large fixed costs to lower the per-unit cost. They also, want to maximize the use of their manufacturing equipment and spread the high costs of research and development over the product life cycle. Some of the developing countries that need improvement and development through capital infusion, skills, and technology voluntarily provide incentives such as fixed assets, tax exemptions, subsidies, tax holidays, human capital, and low wages. These incentives seem attractive to these companies due to their increase in profits and reduction of risks. Caution: The repatriation of profits and foreign exchange risks due to instability in leadership of these developing countries should be put into consideration in negotiation. Access to raw materials and low operational costs in financing, transportation, low wages, lower unit costs, and power are attractive in terms of resource access and cost savings. Most companies move their headquarters to overseas to avoid their respective home countries’ high taxes and other costs associated in business operation in those countries.

Companies need to develop strategies, design and operate systems, and also work with people, different companies, and countries around the world in the form of strategic alliance to ensure sustained competitive advantage. Global management and management functions are usually formed by the prevailing conditions and ongoing stable and unstable developments in the world. A few countries take advantage of these companies, but when companies become aware that they are being used, they should then learn how they can be useful in that different cultural environment in order to make a lot of profits.

International Money Transmission Services Licenses

Money Transmission Services Licenses

If you are thinking of making money in an offshore business you might think of getting a license for money transmission services. For an example of just how much money is transferred a look at WU’s financials for the first quarter of 2010 is instructive. They reported revenues of $1.2 Billion for the first three months of 2010 and a profit of over 25% on revenues. PayPal reported over $650 million in revenue in 2009. In addition there are SWIFT transfers, bank to bank, world wide.

Companies such as WU, Moneygram, and many others offer wire transfer services most typically to individuals who do not have other means of transferring or sending money across a country or internationally.

It is entirely possible so set up such an operation as an offshore business. There are a number of offshore locations where this is possible. What is necessary is to assess how to most efficiently and profitably address a need to transfer money. What is necessary is to choose a location and purchase a license.

Who Needs the Service and How Can One Profit Offshore?

We use WU and PayPal as examples as people typically use these companies to transfer hundreds instead of tens of thousands of dollars. This is a very large market as seen by the financials of both companies. Mexican workers in the USA send money home as Nicaraguans working in Costa Rica and Colombians working in Panama. Although many expat workers present cash to send home it is entirely possible to pay by credit card in order to send money from country to country.

Is This a Feasible Idea?

There is a market throughout the world and with a competitive business plan it is possible to tap into the need to transfer money. There are new companies setting up every day. Setting up in the right tax advantaged jurisdiction with minimum paperwork and capital investment requirements could give the individual or corporation a head start on competitors. The first step is to consult with competent counsel and obtain a license to transmit money.

Obtaining a Government License for Money Transmission Services

Your first decision will be to choose a jurisdiction from which to operate. With good advice you will be able to pick a spot where paperwork is minimal and the potential for profits high. Setup costs typically run around $27,000 including the government application fees.

Required information for an individual or corporate application will include personal information, business history, and the like from all directors, shareholders, and officers of the company.

With the choice of a competent advisor in setting up offshore money transmission services the owners can effectively deal with paperwork issues even to the point of using qualified nominee services to maintain individual privacy in setting up the business. Other useful aspects of such an operation are that back office work can be cost effectively outsourced and professional software obtained. Competent counsel can help with setting up and maintaining a web presence to drive business to your money transmission services offshore business.

Global Domains International Review: A True MLM Business?

Today, if you search on the Internet you find a lot of MLM business opportunities and “home based business” opportunities. It is impossible you never heard of Domains International (GDI). I saw some people on the internet who call this company a big scam, so I will answer this question in this article. Let’s see some details first!

Who is GDI?

The company GDI was founded in 1999 by Michael Reed and Alan Ezeir and it has the headquarters in U.S.A, San Diego. While other people were focusing on the core site, or banners, the two founders had the idea to use another type of domain than. com for online business. So the domains. ws appeared with the opportunity to distribute them in a MLM system.

What product GDI offers?

The company ‘s product is the. WS domain (website). After registration you get a 7 days free trial and only if you want to go on you pay $ 10 per month for the domain.

Paying $ 10 per month you will become an active GDI affiliate and you will receive the following package of products and services:

• 1 personalized domain name with a capacity of 100 MB

• high quality hosting for this WebSite

• 10 personalized email addresses, each with 100 MB capacity

• 9 pages in English with GDI business presentation containing your information, so other people will be able to register in your downline from them.

• an easy program to create a website (website builder) with a large number of patterns, so anyone can build their own website without knowledge of HTML, programming, php, etc…

• the possibility of redirecting the domain name.

• the possibility of forwarding the e-mail address

• FTP access,this means that you can create your own web page offline and then you can upload it to a FTP server.

Recently, GDI offers the possibility to choose the premium package for $ 40 per month. This package includes the domain with a capacity of 1 GB, 50 e-mail adresses, and the company pays $ 15 per month for each affiliate located on level 1 and $ 5 per month for each affiliate from levels 2 to 5.

Compensation Plan

The GDI’s compensation plan is the easiest plan in network marketing. You get paid $ 1 per month for each domain registered in your network on 5 levels.

Here is an example of how much you can earn:

You sign up 5 people. From here you earn $ 5 per month. These five people will learn from you what they have to do and let’s assume that each of them signs up 5 new members, which means a total of 25 people in your downline, so you will earn $ 25 per month on level 2, money that will go into your account. Suppose that each of the 25 referrals will sign up 5 people, so you will earn $ 125 from your third level. From the 4th level your business already works without getting involved. We continue the algorithm in the same way and we have to take $625 from the 4th level. Let’s take a look at what happens on level 5, the last level, without any effort from you! You already earn $ 3.125!

Global Domains International also offers a BONUS: $ 100 if you register 5 active GDI affiliates in the same week, $ 200 for 10 active affiliates registered by you in the same week and so on from 5 to 5. There is no limit on how much you can earn!

To get the bonus you must:

– First to be an active member (to pay $10 for your domain) for at least 1 month

– Then to order the promotional package of 10 CD-DVD worth $ 60.

$ 5,000 Bonus of Excellence

If you bring 1,000 or more affiliates in a period of four weeks you receive a Bonus of Excellence worth $ 5,000 in addition to the $ 1,000 you already earn from monthly commissions.

In conclusion, GDI offers the opportunity to develop an international business from your home, and there is no limit for the income you can earn.

There are still some weaknesses that GDI has:

-Web site builder is rigid and does not allow you to arrange your page as you want;

The 100-MB may not be enough for a large project.

-Although there are some promotional materials, GDI does not offer much training, making things difficult for a beginner.

In conclusion, GDI is certainly not a scam, there are proof that the company always pays on time people who bring new affiliates into the network and continuously increase their team.