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International Tax Plan: The Hurt Felt Around The World

President Obama recently revealed that he has intentions of revamping the rules governing international taxes. This has caused quite a stir among businesses that operate internationally and rightfully so. The President’s plan aims to cut back on the tax advantages that international companies enjoy. Obama defends his plan by saying that by increasing the taxes that these businesses have to pay, it will allow more jobs to be created domestically. In addition to encouraging US based jobs, the plan would restore fairness in the taxes being paid by multinational and domestic businesses. The plan would have three main effects on businesses. It would not allow businesses to defer their taxes in other countries so that they will not have to pay the US taxes. Also, the legal effects the use of low-tax offshore accounts used by international companies would be changed. Finally, companies would no longer be able to shift their earnings into them to avoid the higher taxes and create foreign-tax credits. The Obama administration wants to close these “tax loopholes” in an attempt to recover over billion a year that is lost tax dollars. President Obama has said that he thinks the tax code is wrong because it lets people to pay lower taxes on jobs created outside the United States. For example, creating a job in China would cost less in taxes than a job being created in New York. He also has announced that he plans to add almost a thousand international tax inspectors in an effort to combat offshore bank accounts used on an individual level.

The problem with raising taxes for these multinational businesses is that it will cripple their ability to compete internationally. The countries that the United States competes against have these tax breaks, which is why the US should also. If they are able to pay lower taxes, so should we. Currently, as long as the income earned in another company stays in the country that it is earned, it is acceptable for tax not to be paid on it in the US. This is a fair prospect because tax is being paid in the country where it is earned and it should not have to be taxed twice if it is staying in the same country it was earned and taxed in. Creating jobs in the US seems like a hopeless effort for the most part in today’s global economy. The fact is that we live in a world where countries compete and work with one another. Trade is abundant and by globalization, prices can be lowered. Global business is not going away and a tax increase is not going to help the American economy. If anything, it will hurt it. Prices will increase and worse, companies will be forced to sell their international branches to countries that do not have taxes on offshore profits.

President Obama is striving for a working situation in the US that is not possible because of our standards of living, labor laws, and mandatory wages. Businesses need to send their jobs to other countries in order to keep prices low. By strong-arming businesses to keep their jobs in the US, it will greatly increase the money they spend on wages and benefits for their employees. Labor is cheap and readily available in countries such as India and China, so it makes sense to pay less taxes in creating a job overseas! A company simply cannot pay an American worker the same wages that they will be able to pay overseas. It is easy for people to say buy domestic and keep jobs in the US, but they would not be singing the same tune if they were unable to walk into Walmart and purchase their DVD players for .

Therefore, it makes sense that American businesses that are operating globally should be able to continue to receive the benefits of the current tax system. They are not skipping out on taxes. They are making money in another country, paying taxes on it there and putting those same profits back into the subsidiary in that same country. The United States is the only country that has double-taxes. If they are expected to be able to compete globally, they need the deferral rule so they stay on a level playing field with the other international businesses. Globally competing businesses from the United States support jobs domestically and to cripple them would have a trickle down effect on the domestic jobs. The economy needs to be stimulated, but tax increases are not the solution. Ronald Reagan believed that decreasing taxes and giving people more of their money back would increase spending and help the economy and expand the tax base, known as the Laffer curve. Reaganomics worked then and would work now. International taxes need to be left alone.

International Marketing Plan Ideas ? Can You Go Global?

Have international marketing plan ideas flowing in your head? Do you want to get into the global marketing game? Do you have a plan in place yet? There are a lot of aspects to selling world wide. There are many things to consider. Here are 3 areas we think you may want to look at before your sink your heart and soul into the campaign.

Consider these 3 key areas to enplode your international business profits!

1) Language Barrier- Try walking around your own town and have a conversation with a few people. You will find rather quickly that even if you speak the same language, there may be some things that you simply did not understand. The ability to communicate with your customers is paramount. This is important, not only with the initial sale, but also with future sales and service issues. We would suggest that you market and do business in countries that speak your language. At the very least try to keep the communication lines open with those who you and your staff can interact. If your advertising is in your native language, then you will attract those who speak it and should be ok.

2) Money Exchanges- Having traveled to the UK, I can tell you that the type of cash you carry can be an issue. Try using euro in the airport in England. It can be a challenge. Just imagine trying to spend the same euro on the streets of America. Fortunately, with today’s international banking, you can get your payment from anywhere in the world and the banks make the exchanges at the same time. You can even ask for your payment to be in your native currency and the buyer then makes the adjustment. These methods can simplify things considerably.

3) Product Demand- You will want to be sure if there is a demand for what you are selling before you try to market it in some areas. Regional products like snow shoes are easy, but what if it is just a matter of a saturated market. You would be better served to do your research and find markets that need what you have. The internet is a treasure trove for this kind of information.

These are just a few of the international marketing plan ideas out there. We have just scratched the surface of what you will need to know to be successful in the global marketing arena. Learn all you can about marketing on and off the internet. A solid marketing and mentoring program can make all the difference to your success.

Global Business Plan

A global business plan is required by those entrepreneurs, who are seeking business opportunity internationally. It requires a lot of energy from entrepreneurs and executives of a company, to do research and study of the intended market. A global business plan is not just document of your strategies; it actually becomes your communication throughout global operations. Although, basic function of global business plan remains the same like a normal business plan, but it becomes different in-terms of sales and marketing strategies that are focused towards attracting international market. Following are some of the attributes of global business plan.

It focuses on factors that require achieving success globally by evaluating intended market situation, objective based on reality and commitments with suppliers. It is targeted at a potential market internationally. Focus on intended market’s customer, pricing constrain and strategy to market your product. It covers difference of currency between global operation of a company and any financial or legal obligation that exist in the international market.

Preparing a global business plan is a difficult job, and its outline depends own various factors. Following is the outline of global business plan that is common in most cases.

Executive Summary:

Starting from title page; the summary will tell about the goals and targets set by the entrepreneur. Following are the main components of summary:

Business Overview: Description of company, market and product that is in operation. Financial Highlights: Description of important financial results such as sales, profits, and capital growth Funding requirement: Statement regarding investment requirement for business operations such business expansion, controlling losses and or simply for new startup.

Description of Market:

This section will focus on analysis derived from in-depth research and market study where company is operating or planning to operate. This section covers following key factors of the market:

Market Size & Share Positioning of Products Competition with Key Players

Operations and Management Plan:

This section deals with business operation factors such as supply, production, marketing and distribution. Management plan covers strategies and polices that management will implement to ensure smooth running and achievement of targets.

Organizational Structure:

This section describes organizational structure based on personnel hierarchy with respect to responsibility and designation. It provides a good look for the investors to make them understand that their funds will be utilized by competent and experienced personnel.

Draper Fisher Jurvetson and Cisco to Hold Global Business Plan Competition

Companies Partner to Encourage Entrepreneurship; Winner to Receive 0,000 Investment

Leading early-stage venture capital firm Draper Fisher Jurvetson (DFJ) and Cisco today announced that each company will utilize its extensive global reach to jointly launch a global business plan competition for students aimed at fostering innovation and entrepreneurship. The competition will rely on Cisco TelePresenceTM, which enables collaboration through a live, face-to-face network communications experience, to allow finalists from around the world to present their business plans in real time to a joint panel of DFJ and Cisco executives based in San Jose.

This is the first time the competition is aimed at a global market, a milestone made possible by both DFJ’s Global Network and Cisco TelePresence. Cisco TelePresence helps break down the barriers of distance by creating a collaborative experience where participants feel as though they are sitting in the same room even though they may be located thousands of miles apart. The competition seeks to find new technology-oriented ideas from aspiring college and university student entrepreneurs around the world. Sixteen finalists will be announced on June 19, 2009. The winner, who will be announced on June 30, 2009, will receive a minimum of 0,000 seed money. The winner will also receive professional feedback and mentorship from both DFJ and Cisco. 

“For the past four years, DFJ has held only regional competitions. We are excited to partner with Cisco and expand this opportunity globally to include regions covered by our DFJ Global Network,” said Tim Draper, managing director, DFJ. “Our 16 Global Network Partners are ideally positioned to host this type of competition, given our Network’s unparalleled extensive reach to countries across four continents. We believe that technology has no borders and that there are talented entrepreneurs everywhere who want to change the world, and we look forward to partnering with them.”

“Cisco is proud to partner with DFJ and to continue our long-standing strategy of investing globally in the innovation economy,” said Hilton Romanski, vice president of corporate development at Cisco. “This is a unique and important competition, and one that underscores our commitment to support great ideas despite difficult markets and challenging fundraising conditions. Cisco’s own roots, as a start-up in the early 1980s, help us appreciate that great companies are often founded in tough times. Cisco continues to believe in the potential and power of great ideas and entrepreneurs, and we look forward to utilizing Cisco TelePresence, our innovative and market-leading collaboration technology solution, to make this global competition possible.”

Overall, Cisco has approximately .3 billion in venture capital investments under management and has been an early and active investor in major markets such as the U.S., China, India, Israel, Russia and Europe. Cisco is a strategic investor in start-ups and venture funds around the world and focuses on partnering with young, innovative companies.

Competition finalists will be selected on various criteria including the quality of the management team, technical innovation, addressable market size, competitive positioning, barriers, capital efficiency and financial projections. Click here to find out more about the competition. Prior business plan competitions have produced great successes, including DFJ-backed winners DirectHit, which was acquired by AskJeeves in 2000 for 2 million, and Webline Communications, acquired by Cisco for 5 million in 1999.
About Draper Fisher Jurvetson

Draper Fisher Jurvetson (“DFJ”) backs extraordinary entrepreneurs everywhere who set out to change the world. DFJ achieves its mission through its DFJ Global Network of Partner Funds. Together, DFJ and the Network manage over B and have made more than 600 investments on four continents. With a 24-year history of success across diverse sectors and market conditions, DFJ has led the way investing in emerging technologies, from the Internet and life sciences to clean energy and nanotechnology. DFJ has been proud to back over 500 companies across many sectors including such industry changing successes such as Hotmail (acquired by MSFT), Baidu (BIDU), Skype (acquired by EBAY), United Online (UNTD), Overture (acquired by YHOO), Athenahealth (ATHN), EnerNOC (ENOC), TicketsNow (acquired by TicketMaster), Feedburner (acquired by Google), Interwoven (IWOV), Four11 (acquired by YHOO), Parametric (PMTC), and Digidesign (acquired by AVID). 
About Cisco Systems

International Business Development With an Easy 5 Step International Marketing Plan

So you want to get more international clients, and realize that you need to do some international marketing. But you are not quite sure what to do.

Well let’s have a look at the different areas of international marketing. Companies often go through these steps one after the other, but not always. You could start an export business for example without going through the first step of Domestic Marketing.

Each step clearly explains:

where your company is selling, and

what product you are selling.

You will see very clearly where your company’s business requirements are today with regards to International Marketing. This will also give you a better understanding of what your next step is towards getting more international clients.

1 – Domestic Marketing

First of all there is Domestic Marketing. This is where most companies start. This is the marketing you do for your local market in your own country. There are no international links in this business.

Your Company:

A domestic company, buying and selling its products within one country.

Your Product:

Is a domestic product for the domestic market.

2 – Export Marketing

This is often the second step towards International Marketing. If this is effectively a company’s second step to International Marketing, the company needs to spend a little time and effort on the foreign market research and analyzing all client feedback during this phase.

Your Company:

Sells the same product for his domestic market to a few other foreign markets. There is no effort to adapt the product to the foreign market’s needs. The company remains centered on its domestic market, with minimum cross cultural marketing efforts.

Your Product:

Is a domestic product for a foreign market.

3 – International Marketing

This is a vital stage for the company. The company will have to adapt to the market on several levels. There is often a real learning curve to adapt your products, marketing and sales to foreign markets.

The good news is that most of the skills your company will acquire to adapt to one market will be used again for all of the other countries you want to target.

Your Company:

Is now adapting its marketing, communication and products to the foreign market. At this stage in International Marketing the company is only dealing with a 1 or 2 countries.

Your Product:

Becomes one foreign product for one foreign country.

4 – Multinational Marketing

This is the fourth step. It is a logical extension of International Marketing. This is a term that might be a bit obsolete today, with the internet. It seems to be used more for the large established companies.

Your Company:

Now sells to many foreign countries. And the company now has the skills to go into more countries and will naturally tend to expand into the neighboring countries.

Your Product:

Becomes one foreign product for one wider foreign region covering a group of countries.

5 – Global Marketing

This is the last phase in International Marketing. There are few companies involved. They are the companies with brand names known worldwide.

Your Company:

Operates in such a large number of countries, you could almost say it sells its products worldwide.

Your Product:

The company will naturally move towards cutting costs and will aim to find one product for all countries. In Global Marketing the product will not be created for the domestic market and sold abroad, as in Export Marketing. In Global Marketing one product is created to satisfy the needs of all markets – all foreign countries and your domestic market.

Where Is Your International Marketing Today?

By looking at where your companies markets and products are today you can identify the type of International Marketing you should be using. You can then move towards your next step in International Marketing. These steps logically follow one after the other for brick and mortar companies and the majority of todays e-businesses.

The internet makes international business development easier today than ever before. Remember, simply having a website online will not make your company global. You will have to work at it a little. You will need to apply the right international marketing for your business’ current market and product range.

Your company will get more and more international clients as it moves through the different marketing stages. The whole notion of global business become more accessible for everyone.