5 Tips for Managing a Company Internationally

1. Communicate clearly and often When working internationally, communication is key. It’s hard enough to manage employees within your building, but even more difficult when those employees are several time zones ahead of you. Their work day is winding down just as yours is getting started. In order to effectively manage their work, it’s imperative you have an ongoing, open dialogue and speak to them on the phone at least once a week.

Related: 5 Tech Giants to Watch

2. Bridge the distance with technology. A personal connection is important while managing an international team and the right technology helps.

3. Embrace cultural differences. Working with and among international and global business leaders and companies offers a completely new perspective on your business. However, it also comes with challenges, as cultures vary based on region, country, religion and more.

Related: Tips on International Trade Contracts

4. Leverage partnerships and ask for help. Leverage the relationships you have in every country you touch, either via employees or customer. For example, if you’re not a native Spanish speaker, but you’re heavily pushing a product in Mexico, call on your network to get your message out.

Related: Building Global ‘Trust Bridges’

5. Create and maintain relationships. Living a half-a-world away means you have to work twice as hard to maintain employee and customer relationships. Schedule a weekly company update call with employees. It’s hard to gauge tone via emails and you often gain a great deal of insight just by hearing someone’s voice.

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Country Overview: Mexico

The country is one of the most important emerging economies and is renewing its efforts to become a leader in the region – it just became a member of the Pacific Alliance. Mexico has agreed on an ambitious and comprehensive National Development Plan, which also guides the structural reform agenda to enhance productivity.

The Mexican economy recovered from the severe contraction generated by the 2008-2009 global financial crisis as the economy experienced an average annual growth of 4.3 % between 2010 and 2012. More recently, weak external demand has led to stagnation in growth and prompted the Ministry of Finance to lower its growth projection for 2013 to 1.8 %.

Mexico experienced a surge in capital flows and despite significant volatility in financial variables seems to be in a sound position to deal with moderation of flows upon withdrawal of monetary support in the U.S.  A flexible exchange rate, a modest current account deficit, international reserves at US$170 billion and an IMF FCL of US$73 billion should provide significant protection against external shocks.

The adoption of structural reforms in the areas of labor legislation, education, telecommunication and competition policy, financial sector, energy and tax policy is expected to enhance potential output growth, currently estimated around 3 percent, by about a full percentage point through additional investments and eventually through higher levels of productivity that these reforms are expected to unleash.

source: Worldbank.org, image source: http://timothyrealestategroup.com

Infographic: The global economy in 2030

China’s share of global economic power will hit 18% in the year 2030, matching the might of the American economy in the 1970s and Great Britain’s a century before that. That’s the forecast of Arvind Subramanian of the Peterson Institute for International Economics. In 2030, Subramanian predicts China will hold 18% of the world’s economy, the US 10.1% and India 6.3%. If those figures are right, then China is going to take over the US as the world’s economic superpower way before 2030 — not an inconceivable thought at the rate American politicians are pushing China to revalue the yuan while their own economy remains in the doldrums.

2030-global-economy

Via The Economist.

Historic Trade Deal with Europe Moves Forward, Despite US Snooping

The US –EU transatlantic trade deal, will go to a second round of talks in mid- November, but could hit a stumbling block over Germany’s demand for data protection as a condition to signing the treaty.

The EU and US policymakers agreed to hold two more rounds of trade negotiations over the next two months, The Wall Street Journal reports. The first round will take place in Brussels on November 11-15 and cover investment and energy sector trade, as well as address regulatory issues. In December officials will congregate in Washington DC for another round of talks.

After learning about the NSA special surveillance program on more than 80 embassies and consulates worldwide, including German government offices and Chancellor Angela Merkel’s personal cell phone, Germany has pushed for tough data protection goals before the free trade pact is finalized.

US still hasn’t provided any guarantees it will curb spying on its allies.

First talks were held on July 8 in Washington DC.

Originally the second round of talks were scheduled for October 7-11 in Brussels, but were delayed due to the US government shutdown.

The Transatlantic Trade and Investment Partnership (TTIP), which has the potential to boost economic growth by $100 billion per year in reduced tariffs, was agreed on at  the G8 summit in  Northern Ireland in June.

Shortly after, NSA whistleblower Edward Snowden leaked information showing the extent of USespionage on allies abroad. In response, France and other EU members said there could be no trade negotiation unless the US could guarantee it would halt spying operation on EU allies.

The “once in a generation prize” could add as much as about $157 billion to the EU economy, over $125 billion to the US economy and as much as around US$ 133 billion to the rest of the world, UK Prime Minister David Cameron said at the G8 summit. Over 98 percent of EU tariffs would be eliminated under the accord.

President Obama said the ‘economic NATO’, which would be the world’s largest trade agreement, is a priority for his administration and will hopefully be signed by the end of 2013.

EU diplomats traveled to Washington to discuss the NSA spy fallout, but weren’t satisfied with the answers they received, which failed to justify the eavesdropping on EU leaders by the US.

The trade deal could be a vital economic turnaround for the 28 EU members, which are just starting to emerge from recession. In 2012, the EU’s economy was $17 trillion, according to Eurostat.

In the aftermath of extending bilateral trade ties, the deal is due to cover about 50 percent of global economic output, 30 percent of global trade and 20 percent of global foreign direct investment.

On November 1, Germany and Brazil submitted a new draft resolution to the UN General Assembly which calls for an end to excessive electronic surveillance, data collection, and other snooping techniques.

source: rt.com

image: Reuters / Tobias Schwarz

Weekly Update: Top 5 International Business News Trends

1. U.S. deficit falls to $680 billion. The federal government’s latest annual deficit is the smallest it’s been since 2008, according to Treasury Department data released Wednesday. http://money.cnn.com/2013/10/30/news/economy/deficit-2013-treasury/index.html

2. Islamic world slipping behind economically, Pakistan PM warns. Economic and intellectual stagnation has left Islamic nations incapable of punching their weight in the wider world, the prime minister of Pakistan has warned. http://www.telegraph.co.uk/news/worldnews/asia/pakistan/10411814/Islamic-world-slipping-behind-economically-Pakistan-PM-warns.html

3. Is Puerto Rico the next Detroit? Puerto Rico has been called the next Detroit and the next Greece. It’s buried in debt and possibly teetering on the edge of bankruptcy. http://money.cnn.com/2013/10/31/investing/puerto-rico-hedge-funds/index.html

4. US criticizes Germany and China policies.The US has criticized Germany’s economic policies, saying that its export-led growth model is hurting the eurozone and the wider global economy. http://www.bbc.co.uk/news/business-24753267

5. Russia to invest $1.5 bn into new domestic energy projects in Ecuador, making the South American country a key partner in the region, President Vladimir Putin said at a meeting with Ecuadorian President Rafael Correa in Moscow. http://rt.com/business/russia-invest-ecuador%20energy-956/