Expanding business over the borders.
Many companies world are expanding their businesses past their countries bounders to other countries. Expansion of business over borders is a goal of all institutions from banking industry to schools. In the past this move was welcomed with a lot of hostility by the destination country making set up business or institution very difficult. Governments this days have considered and agreed to allow foreign companies to expand into their countries. What have softened governments is discovering that their country gains to gain from foreign investors through.
The country will have more jobs opportunities. When foreign company sets up its business it will end up hiring the people nearest to the company. Hence the citizens will enjoy getting revenue from the foreign company.
Innovation on the infrastructure. Foreign companies are known to partner with the country’s authorities to improve on the transportation and communication channels. In addition the local government generates revenue by charging fees and taxes to the foreign company.
Provision of high quality goods and services. This is especially the case with education where foreign institutions helps to diversify the education sector of the country. The citizens will get to learn new courses which were not initially offered by local institutions.
Legislation which have been passed to facilitate expansion of businesses into the country includes.
Statutes concerning with land and real properties. Some countries had very strict conditions that a business had to own a piece of land in order to operate in the Country. The problem was that the land owners in the country were afraid of their land being acquired by foreigners. In addition the risk of acquiring land overseas is very high plus the company needs large amount of capital to finance the acquisition. Foreign governments have done away with this restriction and have agreed to let the company rent out either land or building to set up its business.
Elimination of the unnecessary long approval procedures. The foreign companies usually had to provide and get a lot of approvals before they would set up the operations in the Country. This would take a lot of time and many business would give up midway. This strategy aim to entice more foreign companies into the country.
Financial payments to the government is the only item that foreign countries are still reluctant to adjust fairly. The fees charged to the foreign countries maybe in terms of capital requirement or taxes have been increased at a very high margin. Non-residents are being advised that the high payment are compensation to the local government efforts of making it easy for them to expand.
There is a need for governments to rethink about the huge capital requirement on foreign companies.