Doing International Business Internationally

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 of the existence of most of the countries of the world. As a total population, Americans are, quite possibly, the 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 choose the best business tools to create almost anything in the Global Village. Business tools can be found in every country in the 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 of the knowledge and ability of the tool user. Thus, in the Global Village no strategy is American, British, Russian or Chinese. International Business seeks to use the 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 of the fact that other countries and other cultures have also found good methods of doing business, in those specific cultures. And often the 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 in the 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 reverse the role of government and have the government finance your corporate growth rather than having your company finance the 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 on the Colombo Stock Exchange (CSE). Your shares will be freely convertible into the Sri Lanka Rupee. But, who wants Rupees outside of Sri Lanka? So, a listing on the Colombo Stock Exchange reflects a corporate policy to remain a Sri Lanka domestic company. While this decision lacks global vision, it may be the best decision for the Sri Lanka owners of the CSE Company.

To be a multinational corporation requires that you print your corporate money in a country issuing one of the five global currencies. Japan and Switzerland only list companies with multimillion-dollar annual revenues. So, a multinational corporation should seek to be listed in Great Britain, Germany or the United States. In fact, if anyone wants to undertake listing VCP multinational corporations on the Alternative Investment Market of the International Stock Exchange (AIM) in London or on the Frankfurt Stock Exchange, I'd be willing to discuss a working arrangement with them. However, I don't believe either stock exchange is the best possible way to create corporate cash.

A Tour Guide

I have the knowledge and contacts that allow me to access the U.S. stock markets. I've found a path for VCP Multinational Corporations that avoids the excessive costs usually associated with the traditional U.S. Securities and Exchange Commission registration process. I believe that shares traded in the States have greater global exposure and access to more potential investors than those traded in Europe. Though it's not the only workable tool, going public in America, I'm convinced, is the best money-printing tool for multinational corporations.

Triangular Trade

"Triangular trade" is another essential profit tool of the Global Village. The multinational corporations that compose the DIA (U.S. Dow Industrial Average) use it to prosper. Had the founders of these companies, in the 1880s, foreseen the future, they would never have incorporated in Delaware. However, like many things in business, it is often impossible to change a decision, years after it was made. So these DIA companies shelter their global profits using triangular trade. Their product may be made in the USA, but on paper, it's exported at nearly cost to a subsidiary in a tax haven country. The tax haven subsidiary then exports the product to the overseas buyer and earns the profit.

The 21st Century VCP version of triangular trade is simple. In the beginning, incorporate in a tax haven rather than Delaware, Nevada, the UK or Japan. Manufacture your quality product in the country that offers you the best incentives and benefits to do so. Sell your product to the Global Village taking payment in a country that doesn't tax foreign-source income.

Real International Business

Doing International Business isn't simply selling your product beyond your borders. It isn't a matter of seeking investment in your company from overseas. These things may benefit your company. But, they won't make it a multinational corporation. It's the adoption and use of the business tools of the Global Village that allows your company to do international business internationally.

To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] OrScience Articles, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

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