If you want to learn more about International Business Cultures and how knowledge of them will help your business succeed internationally, or need help expanding your business internationally, contact me at:

david.keenan@lafayette-consulting.com

Internationally, developed countries like the USA and Britain and developing ones like China are considered by many to be too insular to be true Global Business Leaders. Britain, in particular, is considered insular by other leading member Countries of the EU and no longer the home of fair play. Many consider Britain to no longer be the major political force it once was and give it poor ratings as a Nation that contributes in a good way to other Nations in the world.

In the USA recent studies have shown that many Americans not only don’t know about other Countries and their Cultures but cannot tell you the location of many Countries  or even States within the USA. We have seen this lately among Political figures, even some who were running for the Presidency of the United States in 2012.

The emergence of China has created similar problems for Chinese business-people. In 2011, The International Business Leaders Forum  (IBLF) held a dinner and conference on Global Leadership that included 30 CEO’s from top Chinese private companies. The lack of true Global Leadership skills was just as apparent in the Chinese business-people as it was in those from other countries.

The willingness and ability of Global Business Leaders to cooperate and participate in the most critical social and environmental challenges, among many important aspects of Global Business, is increasingly critical if we are to have true Globalization and an active and committed Global Village.

The web site acrossborders.org  had a short article in February, 2011 that referred to and summed up the “they don’t do business our way” and the concept that “we really need to educate them?” The fact is that it is the staff of the Company, whether America, British, Latin American, or Asian, that needs to learn the business cultures, etiquette and methods of the other Countries and Regions if they want to create a successful international business and become a real multinational corporation.

This is compounded even more as countries once considered 3^rd world are emerging as major economical powers and, at the same time, the USA has cut back on teaching foreign languages quite dramatically. Many foreign language departments lost resources and most high school students take some Spanish only because, at some stage, they have to take a 2^nd language.

Each country has its’ way of conducting business and use tools, etiquettes and methods  that differ from other Nations and Regions. If you are open to learning these differences then international business opportunities exist in multiple international locations.

To be a member of the “Global Village” and become a successful multinational company, you have to accept that no one Countries strategy is THE right one. The strategies used by American, European, Asian or Latin American companies can be very different and, often frustrating to others.

The term “Global Village” has been credited to Marshall McLuhan  who foresaw the effects of Globalization as far back as 1964.

Changing the way one does business when going international, requires losing the “this is the way we’ve always carried out our business.” As the “Global Village” has grown, aided by the constant advance in communication technology like the Internet, other Countries and Cultures have developed their own excellent methods of carrying out business in their Countries and Regions.

Of course, we know there are many languages spoken. Within many languages, there are lots of different language groups and dialects that can cause problems. While English is generally considered the language of business, it is now the 3^rd most spoken in the world, slightly behind Spanish and both are well behind Chinese.

While Mandarin has been the “official language” of China since 1913, there are seven (7) language groups and many dialects spoken within those groups. In Germany, while Standard German (Hochdeutsch) is widely used, there are six (6) branches of the language  and between 50 – 250 dialects. These factors can make it difficult for people in those Countries to communicate with each other sometimes, let alone a foreigner trying to do business.

Therefore, not everyone who visits your website speaks English so, as you expand, be sure your site offers some level of service, possibly a description of your Company, Products and/or Services in other major languages. If you don’t have International Channel Partners, your Customers will want to call Technical and Customer Support so, sans International Channel Partners, it means you will need to employ bilingual Technical and Customer Support staff.

As you can see, developing your business internationally is not a simple process and most companies require the services of an International Business Consultant  to ensure their success and make them a true member of the “Global Village.”

Just as it takes a Village to raise a child, so it requires a Village – a Global one – to raise your Company and guide it to maturity internationally.

Also, we conduct training and seminars on Global Business Cultures and Etiquette. 

Introduction to France, its’ Business Culture and Global Status

Like many of the EU Countries, the main focus in France has been the rising unemployment and financial problems that many say are caused by the tough austerity measures taken and this has had a major impact on the business culture and global status of France.

As everyone now knows, 13 months ago, France elected François Hollande as its’ first Socialist President since 1988 and he pledged to reverse the austerity measures that had been applied in many other Countries in the EU, including the UK. However, reality set in and he has been plagued by internal scandals that primarily involve people close to him politically and “paradis fiscaux” or Tax Havens as they are known as in the USA. This was an issue M. Hollande campaigned on strongly, saying he would aim to curb the abuse of “paradis fiscaux.”

That and other promises made just 13 months ago seem a long way off as his popularity is the lowest for just about every French President in his first year. His popularity rating in May was 29% up a whopping 4 points from the all time low of 25% in April – just 11 months after he was elected with such optimism.

In France the unemployment rate is currently 10.8% up since this article was published a month ago and, like all the EU Countries faced with rising economic problems, the youth unemployment is over 25%. Both these statistics have increased consistently for the past 24 months. France’s economy is facing an expected recession of 0.1 percent this year.

As of 2012, the three primary authorities in World rankings of Countries by GDP had France as being the 5^th largest economy by GDP. The sources are:

1. The International Monetary Fund
2. The World Bank
3. The CIA World Fact Book

However, those same reference authorities rank France much lower when it measure GDP/Capita.

1. The World Bank ranks France at #23
2. The International Monetary Fund ranks France at #25
3. The CIA World Fact Book has an even lower ranking at #28

While France has maintained its’ #5 ranking in GDP (the 2^nd largest in Europe) the GDP/Capita rankings have fallen since 2011, demonstrating less disposable money among its population.

Until the recent financial crises that have rocked the world, France was considered one of the leaders in what was the world’s strongest economic area, the European Union (EU). France ranked #1 in the world as a tourist attraction with nearly twice the number of visitors than the USA. When you consider that its population is about 20% of that of the USA and more tourists visited France than it has population, the figures were outstanding.

Languages Spoken:

There are many minority languages spoken in France, including:

• Arabic, which reflects the growing Muslim population in France.
• Basque, which is spoken by a minority along the French/Spanish border
• Breton, a Celtic language spoken in the North-West region
• Catalan, which is spoken in the French Pyrenees
• Flemish is spoken in the North-East along the border with Belgium
• German dialects, like Alsatian Moselle Franconian and Swabian are spoken in the Alsace-Lorraine and Moselle regions
• Italian is spoken near the border with Italy
• Occitan is a romance language spoken in Southern France and other parts of Southern Europe and its’ closest “relative” is Catalan.

However while all the above are spoken by nearly 15% of the population of France combined, none are recognized by the French government as official languages so there is only one official language and that is French. This is reflected in the requirements when it is applied to localization requirements for products and/or documentation and user manuals.

Business Culture and Etiquette in France:

In some countries, “Intellectuals” are treated with suspicion and even disdain and the US is not exactly innocent in this respect. So, please note that in France, it is quite the opposite and people who have attained top qualifications from the Grande Ecoles very often are in Senior Management positions. The Grande Ecoles in France are the elite schools. They are like Oxford and Cambridge in the UK and Harvard, Yale & Princeton (the big three of the Ivy League Schools) in the USA.

Therefore, the Prèsident Directeur Général (PDG), which corresponds to the CEO, holds a lot of power since the French system is very hierarchical. The PDG will set the future direction of the company and then disseminate it down to middle and junior management. Therefore, unlike Northern European Countries like Germany, Netherlands or – say – Sweden, where decision tend to be more collaborative, the French system leans toward the directive.

One aspect you are likely to find in France is a very close relationship between industry and government, more so than in other industrialized countries with which you may be familiar. It is not unusual to find people who have held top positions in government, take those skill sets into the commercial/industrial sector.

In general, business in France is conducted in a formal and courteous manner but do not be surprised if you are questioned in a very direct manner. The French are not afraid to ask very direct and probing questions so make sure you know your subject matter about your product and/or service. If you are not sure of the answer, say so and tell them you will have an answer for them within 24-hours.

If the time difference allows, I have called home office in the UK or USA to get the answer. If you can do this, you will garner more respect than trying to bluff your way through. Don’t be shocked if the discussions become heated between the members of the French team because they are not shy in expressing themselves to each other and I have witnessed some very intense discussions in French.

Obviously, it helps if you speak French or have a French speaking person in your party but if you don’t, have the courtesy to learn some common phrases and greetings. While your hosts will recognize your don’t speak French, they will appreciate your efforts to show respect for the language. If the meeting is held in English, make sure you double check that what you have said is fully understood. Again, they will respect your concern and desire to ensure that communication has been successful.

As with other European cultures, avoid the high pressure sales style but understand that the French do respect a more low level, logical presentation and are impressed with good debating skills. Once an agreement is reached, expect to be asked to prepare a comprehensive and accurately worded agreement which should be presented in a formal format. Bound agreements show respect and class and do ask if more than one copy is required because they may want one for each of the management team and one for their PDG.

Dress, Meals and Entertainment:

Business dress should be stylish and understated so for the initial meeting wear a conservative suit if a man or a suit or Conservative but elegant dress if a woman. Depending on the dress code of the company, you may dress a little less formally for follow up meetings.

Unless you become very close with your client or partner, you are unlikely to be invited to dinner or to their homes as the French tend to keep business and personal lives separate. The most common invitation is for lunch but note that lunch in France is not the rushed affair it tends to be in the USA. Lunches tend to be long and will usually include wine so be prepared to relax and enjoy a 2-2½ hour relaxing experience and try not to discuss business unless your host does because it is personal time and you are more likely to talk about non-business matters.

The French, the Eurozone, Germany and Global Financial Problems:

As discussed at the start of this blog, whether François Hollande will eventually guide France out of its recession remains to be seen but just this last week saw a clash between him and Angela Merkel whose Party accused him of “shaking the foundations of the EU.”

What he wanted to do 12 months ago was to persuade the German Chancellor and others that it makes sense, to balance budgets over a longer time frame and slow down the severe austerity measures. In fact, this is not unlike the proposals Germany made in the 2001-2005 period when its own budget deficits were above the minimum standard of 3% that is the Eurozone baseline.

Now he is saying enough to the demands being made by Germany on the other Eurozone members, including France. Hollande is now saying that it is not for Germany or the EU Commission to dictate to Paris what they have to do to put their economy back on track. France and Germany is an exercise in cultural differences, both business and social that would be a blog on its own, if not a book.

There is a growing movement in many countries that the Euro is not sustainable but, let’s face it, given the global financial ongoing crises and continuing irresponsible actions by the “too big to fail banks” like JPMorgan Chase and Barclay’s, the latter of which sparked the Libor Scandal, one could argue that currency as we know it could be a thing of the past because what is the real value of money?

It is a growing topic of discussion among my international colleagues and there are a number of us who are looking at the short, medium and longer term alternatives open to work in a global marketplace that is under growing financial pressures and mounting debt.

What will tomorrow bring? What I do know is what next week will bring and that is Part 5 of my series in which I will discuss the Southern Eurozone Countries of Portugal, Italy, Greece and Spain, each of which is under a lot of pressure and we all know the chaos that is currently impacting all of them.

If your company wants help and advice to expand into the EU or wants help with specific countries, contact David Keenan at: david.keenan@lafayette-consulting.com or call (+1) 720-583-4650

In the first two blogs in this series; I discussed knowing your markets, conducting business in the EU, establishing your Channel Partners and then talked about the business meeting etiquette and cultural nuances of the Nordic and Baltic Countries/States.

This week, we look at conducting business in more of the Northern European Countries and their cultures that differ a lot from those of the Southern ones.  The focus is on conducting business in the Benelux and the German speaking Countries  which differ widely in the level of English spoken and understood at meetings, have various cultures even within the same Country yet, in many ways, have a similar business meeting etiquette.

Benelux:   

The three Countries that comprise the Region are: Belgium, Netherlands and Luxembourg.

The Region is, essentially, the most centrally located one in the EU and because its’ two primary capital cities – Amsterdam and Brussels – are both less than a 2 hour flight from anywhere in the EU (if flights are on schedule, they can be 90 minutes away) many companies have set up their European Head Offices in the region for ease of conducting business in Europe.

Of course, Brussels is home to the European Parliament. Because of the EU Parliament and the plethora of foreign companies with head offices in the region, you will find an extraordinary rich business cultural potpourri, possibly unmatched anywhere else in the world and most certainly in Europe that allows an easy introduction to conducting business in the region. While the region has its unique cultures, the business meeting etiquette should be easy to assimilate.

Belgium - Is roughly the same size as Maryland. Besides English, there are three primary languages spoken; French, German and Flemish. The Belgian people are excellent linguists with English being widely spoken in business. The Country is a parliamentary democracy under a constitutional monarch and the current monarch is King Albert II.

The Netherlands – Is the largest Country in the region and about half the size of South Carolina. Dutch is the official language and spoken by about 90% of the population. The Country has a long history conducting global business and while English is widely spoken in business, in the more rural areas, you may find that it is not the case. It is also a parliamentary democracy under a constitutional monarch, in this case Willem-Alexander who is the King Regnant of the Kingdom of The Netherlands that includes Aruba, Curaçao, and Sint Maarten. He succeeded his Mother, Queen Beatrix who abdicated on April 30, 2013 after a 33-year reign.

Luxembourg – Is the smallest of the Benelux Countries, slightly smaller than Rhode Island, and the only one that is land-locked. Its ‘official designation is the Grand Duchy of Luxembourg and it is a parliamentary representative democratic monarchy.

The Grand Duke, currently, Grand Duke Henri, is the Ceremonial Head of State. The Prime Minister is the Head of Government, which is the Legislative Branch of the Government and there are currently 6 Parties represented. They are the Christian Social People’s Party (CSV), Socialist Workers’ Party (LSAP), Democratic Party (DP), Green Party, Alternative Democratic Reform Party (ADR) and The Left Party. As with other advanced nations, Luxembourg has the Judicial Branch, which is called the Superior Court.

While Luxembourgish, which is classed as a High German Language, is the national language, French & German are the official languages and English is spoken in business, so conducting business there should pose no problems . The per Capita Income is over $100,000 a year with Banking and Financial Services (as we have heard in our Political News recently) accounting for more than 70% of the Country’s GDP.

Overall, Benelux is one of the easiest regions in Europe for conducting business and, as mentioned, is very central to enable ease of conducting business elsewhere in Europe.

The German Speaking Countries:

Germany – Is a federal republic and, for many industries, is either the #1 or one of the top three markets in the EU. It is about the size of Montana. German is spoken by over 95% of the population with Turkish being the 2^nd most spoken (about 2%) and in most instances, English is acceptable in meetings.

However, in my experience of conducting business in all parts of the Country, there are a number in which you will need someone like a Channel Partner to either translate for you or make the presentation in German.

You will need some form of localization of your products and your Channel Partner can often do this for you in return for extra discounts or sole rights to sell the localized version of the product. This will make conducting business in the Country much easier for you.

Austria - Is also a federal republic and is slightly smaller than Maine. The official language, German, is spoken by more than 97% of the population but there are many distinctive regional dialects and a localized product is advisable. If your primary German Channel Partner has localized the product, your Austrian Partner(s) will buy that version from them. So, again, a localized version will make conducting business much easier.

Switzerland – Is a confederation of 26 Cantons, in 17 of which German (Deutsche Schweiz) is the official language. In 3 other Cantons, it is co-official with French and shares with two other languages in one Canton (Graubünden) where it is spoken by about 50% of the population.

In the majority of cases, your product’s English version will be acceptable but, if a localized German version is required, be aware the German-speaking Swiss do not always feel in-sync with their neighbors to the north, even though the Alemannic dialects are similar. You may encounter some resistance if you ask your Swiss Partner to buy from a German Company.

Even within Switzerland, there are differences between the Cantons. The Swiss Federalism System of Government and the resultant political subsidiarity, enables a lot of political decisions to be made at a Municipal or Canton level and essentially encourages and supports this situation.

Luxembourg – As discussed under Benelux, Luxembourg is a Country in which German is spoken.

Liechtenstein – Is an Independent Principality and, while it does not border Germany, its’ official language is German. It is the only Country that lies entirely within the Alps and shares the Swiss postal and customs systems and the protection of its army, as well as the Swiss franc.

While tiny at 62 sq. miles, its’ population of approximately 35,000 enjoys the second highest GDP per Capita in the World and according to the CIA World Fact Book, Luxembourg is 3^rd in the GDP/Capita table.
The predominant businesses in Liechtenstein are financial services or fiduciaries (Treuhandbüros) that register letterbox companies. There is more than one registered company for each inhabitant and Liechtenstein is considered a tax haven.

While languages and cultures vary, the Benelux and German speaking Countries have a commonality with business practices and etiquette. The common factors to consider when conducting business in these Countries and Regions are:

• Dress should be business formal for both men and women, consistent with what is conventional in most European Countries.
• Ensure your pre-meeting research is thorough and accurate – see last bullet point below.
• Make appointments and be punctual. If you have equipment to set up, let your host know that you need to arrive earlier to set up. In most cases, they will provide you with help in setting up and ensuring the equipment is working.
• Prepare an agenda, allow for Q&A, which most prefer to be interactive, and adhere to the agenda in the meeting.
• Keep your presentations precise and make sure the information is accurate.
• High pressure tactics can work against you, no matter how good your product may be.
• Whatever you do, avoid any hint of being argumentative or confrontational if questioned about your product’s performance or the accuracy of the content of your presentation.
• Be patient because you probably will not “close” the deal at a first meeting.
• Make sure you cover ALL your bases because once a decision is made, it is unlikely to be changed and you probably will not be given a second opportunity.

These are my observations based on conducting business globally for over 25 years’ internationally in all regions of the World including all the Countries and Regions of Europe.

Are they consistent with your experiences? I would love to hear from you about your experiences conducting business in these Countries/Regions.
 

If you want to learn more about doing business internationally or need help expanding your business internationally, contact me for an initial consultation at:

david.keenan@lafayette-consulting.com

What is the impact of and differences between nominal GDP and GDP/Capita which are often very different?

When companies are going through the process of deciding into which Countries or Regions they should expand, there are a number of considerations to take into account and the target market for products should be a major consideration.

Just because a Country is one of the richest according to its’ GDP, it may not be a good market for consumer oriented products because the GDP/Capita may not be the same ranking as the Country’s overall GDP standing.

All the leading organizations that track and publish these facts show the United States of America as the richest Country in the world by Gross Domestic Product (GDP). However, while the IMF ranks the USA at #12 as far as Gross Domestic Product per Capita (GDP per Capita) is concerned, The World Bank ranks it at #16, The UN at #18 and the CIA World Fact Book at #19.  This gives the USA an average position at #16 overall.

Canada 11^h and 12th (average of the 4), The Netherlands 18^th and 14^th (averaged) and Switzerland 20^th and 6^th (average of the 4) respectively are the ONLY other Countries that are in the top 20 in both categories. Despite present day financial problems, does that make them the most attractive overall markets globally along with the USA?

Many of the top 20 richest are not in the top 100 in GDP per Capita so are they good markets for consumer goods? Countries with strong GDP’s considered as having potential are:

• China is ranked 2^nd in GDP but 92^nd per Capita (averaged)
• Brazil is ranked 7^th but 58^th per Capita (averaged)
• India is ranked 10^th but 142^nd per Capita (averaged)
• Indonesia is ranked 16^th but 116^th per Capita (averaged)

Five (5) of the top 10 richest Countries are European and seven (7) of the top 10 in GDP/Capita are also European. As previously noted, the sources used for this information are:

• The CIA World Fact Book
• The IMF
• The UN
• The World Bank

The 10 top European Countries based on rankings are listed with its’ GDP and its’ GDP/Capita (all averaged) to highlight the differences that may impact international business decisions.

Let’s look at some of the Countries that are ahead of the USA as far as GDP/Capita is concerned and see what, if anything, they have in common.

Many are small Countries and populations range from Liechtenstein (35,000) to Australia (22.6 million). Australia accounts for 37% of the total population of the 11 Countries, which is 61.2m. To put that in perspective, the combined populations of the two (2) most populated US States, CA and TX is 62.4m.

Five (5) of the Countries have Financial Services, including off-shore tax havens, as their leading businesses and revenue producers. They are:

• Liechtenstein – #2 in GDP/Capita but down at #148 in GDP
• Luxembourg – #3 in GDP/Capita but only #70 in GDP
• Switzerland – #6 in GDP/Capita and #20 in GDP
• Singapore – #15 in GDP/Capita and #38 in GDP also has a strong market-based economy, based on entrepôt trade
• San Marino – #10 in GDP/Capita is #166 in GDP

The much vaunted Cayman Islands is not quoted on all the sites and is #26 in GDP/Capita and #165 in GDP so, despite its’ notoriety in the recent US Presidential Elections, it is the weakest of the major financial centers worldwide. 

Four (4) of the Countries rely on Oil and Natural Gas. They are:

• Kuwait
• Qatar
• Norway – also its’ timber industry
• UAE  

So the two primary “industries” are the ones we hear a lot about in the USA because “Big Oil” and the Financial Industry have been the two that have received many benefits from the US Government in terms of bail-outs and subsidies and neither pay much, if any, in taxes in the US.

Some of the others include:

• Australia – Its’ service sector of tourism, education, and financial services, accounts for about 70% of GDP.
• Denmark – One of the freest financial and products markets + oil/gas
• Sweden – Automotive, Engineering, Pharmaceutical & Telecommunications.

There are industries that produce products for all markets – Commercial, Government and Personal use and these industries, naturally, are not as impacted because of the diversity of their markets. Perhaps the one that is most familiar to us is the automotive industry because most families (95%) in the United States have cars.

We all know there are certain Countries in Asia and Europe that have vibrant automotive industries and others that don’t so if that is a target market; the short list of targeted companies within that market sector is easier to compile.

It probably comes as no surprise to learn that, in 2012, China led the world in automotive production with its 19,271,808 units produced almost matching the combined production of the #2 producer, the USA with 10,328,884 and #3 Japan with 9,942,711 units. Germany and South Korea are the others in the top 5 producers.

A point worthy of note as far as automotive production is concerned is how the US domestic production has dropped significantly. In the 21-years between the end of WWI in 1918 and the start of WWII in Europe in 1939, the US accounted for 90% of the world’s automobile production. In the post WWII era in the 50’s the US still accounted for 75% of automobiles produced. In 2012, it accounted for 12.3%. 

China took over as the top producer in 2009 with 22.3% of units manufactured, which had increased slightly to 23% in 2011 and that level was maintained last year. However, when one considers that GM is the leading producer of automobiles with over 9 million units in 2012 and the top Chinese producer is in 17^th position with just over 1 million units, it is easy to see that the bulk of the production in China is from brands of foreign origin, including the other 4 of the top 5; the US, Japan, Germany and South Korea. GM is the biggest producer of cars in China.

While the GDP/Capita of China puts it in 92^nd place, the fact is that there are many very rich people in China who buy the more upscale foreign cars and the police, ambulances and taxi vehicles are almost all foreign cars made under JV’s in China.

If and as the wealth spreads, China will become the largest potential market for cars of all sizes and, in fact, many Asian, US and European manufacturers have virtually ignored the more traditional car shows this year to focus on the big Shanghai Motor Show this month.

This is an example of getting in on the ground floor, despite the apparent lack of purchasing power for such products in China. However, with over one million millionaires in the Country, there are signs that things will only improve in subsequent years for the Country in general.

GDP vs. GDP/Capita has, is and will always be an equation the marketing and financial people in companies weigh, analyze and make predictions in order to take advantage of emerging markets even if the initial impact may be narrow.

david.keenan@lafayette-consulting.com or call (+1) 720-583-4650

The EU: In Part 1 last week, we covered an overview of the European Union, the process of selecting the Prime EU markets for your products and establishing your Channel Partners.

This week, we look at the cultures and business practices of some of the Northern European Countries that differ a lot from those of the Southern ones.  We start with the Nordic and Baltic Countries.

When doing business in the EU – or anywhere internationally for that matter – be aware of the tone of your comments, even if they are in jest, and never make assumptions about a Country based on its size.
The USA is not the only Country that has a lot of national pride and patriotism.

Insensitivity can cost you business without you knowing why because your host is unlikely to tell you. The Internet and Social Media have, in many ways, made the world smaller. However, it has not made the world a uni-cultural society. All the various cultures, customs, laws and unique business practices apply as much today as they did before the Internet and the recent Social Media revolution.

The Countries and Business Cultures of the Nordic and Baltic Regions

One Lesson to stress is to learn as much as you can about the Country in which you are conducting business. Here is an example of not knowing a Country and how it can backfire on you.

During the UN air campaign over Libya in 2011, I heard a number of comments in certain USA news media about the two F-16’s that were flown by pilots from the Royal Norwegian Air Force (RNAF) that attacked the Bab al-Aziza compound of Gaddafi in Libya. Some of the comments were sarcastic and disrespectful to the pilots and Norway. Such comments demonstrate a level of ignorance that can – potentially – have an adverse impact on how people view The United States and, as a US Company, your business.

Norway is a founding member of NATO and the RNAF operates 57 x F-16A and F-16B Falcons which, outside the USA, is the 4^th largest fleet of F-16’s behind Israel, The Netherlands and Belgium.

Denmark, Norway and Sweden are considered to be the Scandinavian Countries and the Nordic Countries are these three plus other Countries including the Åland Islands, the Faroe Islands, Finland, Iceland and Greenland.

Across the Baltic Sea, commonly referred to as the Baltic States, are Estonia, Latvia and Lithuania who separated from the USSR in 1991. They, along with Denmark, Finland and Sweden are members of the EU. Norway, despite being a founding nation of the NATO is not a member of the EU.

Languages:

The good news for US businesses is that English is spoken in business throughout the region. The Nordic/Baltic Region has an interesting and eclectic range of native language roots. If you are interested in such topics, studying the roots of the various language families is a fascinating subject. Given the closeness of the Baltic States to Denmark, Finland and Sweden as well as Germany and Poland, the different language roots are fascinating.

• Estonian and Finnish are Uralic languages.
• Latvian and Lithuanian are Baltic languages.
• Danish, Icelandic, Norwegian and Swedish are North Germanic languages.
• The Greenlandic Language is an Eskimo-Aleut language.

Business Culture:

I am going to focus on the four markets considered the primary ones in the Nordic Region and they are Denmark, Finland, Norway and Sweden. While English is accepted as the business language in these Countries, there are nuances of which you should be aware. One is how to pronounce names correctly. If you are unsure, ask, because they will respect you more for asking than they will if you mispronounce their name.

Avoid comparing one Country to another but do compliment them on their Country because each has its own cultural identity. Learning some tidbits about each Country obviously helps. Here, for example, is one tidbit about each Country but there are many more.

• Denmark: The Danes are very proud of their Monarchy, which has an 80-90% popularity rating. Learn a little about Queen Margrethe II (anglicized as Margaret) and the Royal Family.
• Finland:  The Finns have the highest per capita use of the Internet and Cell Phones in the World.
• Norway:  The Norwegians are proud to live in one of the most successful, environmentally responsible Countries in the World, despite its’ major off-shore oil reserves. More than 98% of its electricity comes from hydroelectric power and the rest from thermal power and wind mills.
• Sweden:  Most Swedes live in the Southern part of the Country. Sweden is rich with forests, archipelagos and more than 100,000 lakes. Swedish people have a high regard and respect for the natural beauty of the Country and a high awareness to protect the environment.

Nordic people can be very direct in business discussions which can make people from other Countries feel uncomfortable. Understand that this is not intended to be confrontational or rude; it is the way they conduct business and expect the same directness and honesty in return.

Another common factor is a lack of small talk in business meetings and Nordic people will often pause when speaking. This can be a short pause or, sometimes longer periods of silence which can make people, who are unaccustomed to such situations, also feel uncomfortable.

Whatever else you do, if and when this happens, KEEP QUIET and DON’T INTERUPT.  If you don’t allow your hosts to finish their sentences or take time to process what you have said, your interruption can be considered rude.  Note that they will never interrupt you while you are talking or making a presentation unless you invite them to ask questions interactively.

The Baltic States:

Lithuania, Latvia and Estonia, have been EU members since 2005 and are closest in many ways to Russia’s growing consumer market and a perfect bridge between the powerhouse of the West – Germany and that of the East – Russia.

German companies have invested in the Baltic States and, according to a report from the German-Baltic Chamber of Commerce released on April 11, 2013 there is an increased confidence in the future of German business in the Baltic States.

Another great advantage of these comparatively small States/Countries is that they have a well developed infrastructure and a highly educated and multilingual workforce.  Many of you may know that Estonia – the smallest of the three – is where Skype originated.

Estonians tend to be reserved at the beginning of a meeting but, typically, are very direct in their communications, so don’t be surprised if they say what they mean and be assured they mean what they say. They will apply some diplomacy and temper their comments if they believe they may embarrass you in front of your peers.

Latvians are polite and courteous and can be very reserved until they get to know you. It is common for the most senior Latvian at the meeting to open with a brief speech and, if this is the case, the most senior person on your team should be prepared to respond in kind.

Lithuanians are also polite and courteous and not prone to using a lot of hand gestures so, if this is a trait of you or members of your team, pre-warn them to tone them down. They are likely to spend time developing a rapport with you and your team prior to moving onto the actual business discussion. They are also likely to invite you to socialize in the evening following the meeting so be sure to be prepared and make sure you accept the invitation.

Similar to their Nordic neighbors, silence and pauses are usual when they want to consider some subject matters and collect their thoughts before responding or commenting.  So, I am going to be redundant and remind you of what I wrote above about the Nordic Countries.

Whatever else you do, if and when this happens, KEEP QUIET and DON’T INTERUPT.  If you don’t allow your hosts to finish their sentences or take time to process what you have said, your interruption can be considered rude.  Note that they will never interrupt you while you are talking or making a presentation unless you invite them to ask questions interactively.

Hopefully, this outline will whet your appetite to learn more about doing business in the Nordic and Baltic Countries.

Next week, we will discuss the Countries and Business Cultures of Benelux and the German Speaking Countries so please come back for Part 3 of this series of “The EU – Learn Its’ Business Cultures & Conduct Business Successfully.”

david.keenan@lafayette-consulting.com or call (+1) 720-583-4650

An Overview of the European Union:

The EU - European Union - offers unique business cultures and etiquette that require learning so companies selling into the EU can be successful.

There are 27 Member Countries currently with 4 candidate countries and 5 other potential candidates. In the 27 member countries, there are 23 languages spoken and business cultures and etiquette are as numerous and diverse as these numbers would suggest.

The EU is less than half the size of the USA – 1.67 Million sq miles versus 3.79 Million sq miles – but has over 1.5 times the population at 501 Million versus 308 Million according to the 2010 Censuses.

The EU is committed to providing development aid to member countries and, per the graph below produced in 2007, was the biggest provider of such aid in the world and that was the case in 2010 when the last data was produced. The present economical problems in the Eurozone may have a big impact on the ability of the EU to maintain that position in 2013.

Selecting the Prime EU Markets for your Product(s)

You have decided to distribute your products in EU and want to know where to start. As with any business decision, it depends on your product as to which Countries are the prime ones. For some products, the targeted EU Countries may not necessarily be the largest or most populated. In 2010, the #1 and #2 importers of Pharmaceutical Preparation Products in the European Union from the USA were Germany and The Netherlands.

Germany is the size of Montana but its’ population of 82.3 million, is the same as the top 3 populated US States, California, Texas and New York, combined – April 2010 Census. The Netherlands (pop 16.6 million) is about half the size of South Carolina and nearly as populous as Florida, which is the 4^th most populated US State.

Companies selling their products into the EU for the first time are not Pharmaceutical giants but the comparison I used can apply to other product families. `

So how do you determine where to start? Here are some guidelines to consider:

• Short List countries you believe are the best potential for sales and business development and for which you don’t need localization, thereby reducing initial costs.
• Use US and local search engines to determine which of your competitors are established in the short-listed Countries.
• If you have European clients buying directly from you, ask them why they bought your product and if they would endorse it as part of your launch program in their Country. User endorsements can be a priceless tool to enable you to conduct business successfully.
• If you don’t have anyone in your company with international experience, contract an International Business Consultant to help you with your sales & marketing efforts.
• Source and appoint Channel Partners and learn from them what works in their Country.

Start your European business adventure understanding what works for you in the USA, more than likely will not work abroad. Each Country has its’ own business culture and etiquette and offers its’ own unique challenge.

As you develop your business plans and strategies, be sure to note what works in individual Countries so you can develop a sound Global strategy, knowing what can be incorporated as part of your overall strategy and what is unique to each Country.

The top 10 European Union Countries by Imports, based on data from the World Trade Organization and the International Trade Administration of the US Department of Commerce, are:

1. Germany
2. France
3. United Kingdom
4. Italy
5. The Netherlands
6. Spain
7. Belgium
8. Switzerland
9. Austria
10. Poland

Choose your Channel Partners well and acknowledge they will know what works in their Country. Encourage them to develop sales and business development plans and, if they advise that your product or marketing materials need localization, ask them if they would like to do it. In my experience, it makes them more invested in making sure you achieve success in their Country.

Establishing Your Channel Network in the European Union

By the time you are ready to implement this next stage of your expansion into Europe, you will have determined those Countries in which your competitors are established, know which Countries will require localization of part or all of your product and have sourced and appointed the Channel Partners you believe will bring you success in their respective Countries/Regions.

Before you launch your product in the chosen Countries/Regions, please make sure you have given your Channel Partners sales and technical support training and satisfy yourself that they are ready to start their campaigns and can at least provide first level support.

Initially, you will probably have to provide more detailed support and ongoing training to the Partners until they have reached a level where they are able to be virtually self sufficient. If you have chosen well, your Channel Partners will be an integral part of your sales and support teams and require the same level of management, ongoing training and guidance as your domestic sales and support teams.

Once you have given your Channel Partners an agreed period of time to develop their respective sales and marketing campaigns, you will set them monthly and/or quarterly sales targets. In line with this, they will provide you with sales reports and forecasts.

Many International Channel Partner agreements will include a base discount structure with incentives built in that reward performance with increased discounts. If having your products advertised in local media is important, you can also negotiate marketing incentives. Remember your Channel Partners are sales motivated companies who want to grow and expand their businesses so giving them incentive to promote and sell your products is a win-win business position.

Lafayette International Business Consultants, LLC specializes in International Business and has trained and mentored sales teams in the USA, the EU and other Global locations. We work on the basis that it is as important for business-people in other Countries to understand the US business cultures and etiquette as it is for the US business-people to understand the cultures and etiquette of other Countries.

By adopting such an approach, we have found that the successful appointment and training of International Channel Partners leads to significant growth of International Markets for Companies from all regions of the world. The process is smoother and less problematic than when they venture into international markets without any help, mentoring or expertise.

david.keenan@lafayette-consulting.com OR via (+1) 720-583-4650

Culture Definition: 

The European Commission defines Culture as “an important sector of social and human development, which contributes to identity-building and self-esteem, fosters economic growth and social cohesion and helps to promote political participation and ownership. In its mainstreaming sense it is defined by specific values, traditions and behavioral patterns that need to be considered in all sectors of development when working with partner countries.” In my opinion, it is critical for any company who wants to be successful to learn about other global business cultures.

Learning about other cultures is critical to the global success of your company and the more your staff learn about other cultures, the more likely it is that their knowledge will have a positive impact on the business and lead to greater global success.

There are so many institutions that shape our cultures that one could despair that we could never be able to fully understand global cultures because there are so many differences and yet, if one looks at it objectively, there are many common denominators in our different cultures.

This diagram courtesy of Our Task shows the key culture shaping institutions that impact everyone, irrespective of where we live and our socioeconomic status. This diagram identifies eight key areas but I would add at least two more to the “list” and make it a top 10 list.

The two I would add are family and friends/peers. There is an old saw that we don’t choose our families but ones family shapes ones culture from day one. If your family is Irish, chances are you will be raised in an Irish cultural environment and so it goes for ethnic groups that have a strong tendency to want to maintain their unique identity. In your formative years, you are likely to seek friends who share your views and interests and we all know how peer pressure can have an impact on our views.

So what are the 8 key areas identified by the diagram and can you see how they all combine – with my other two included – to shape who we are and what we become culturally?

In alphabetical order, they are:

• Civic
• Corporate
• Education
• Government
• International
• Media
• Science
• Spiritual

This is why so many people worldwide remain stuck in their own cultural environment and are unable to open their minds to want to know other cultures, learn the differences and be able to work in harmony with others. When that happens, most people come to understand how much we have in common culturally and become members of the Global Village.

As I have written in other blogs, the USA is one of the worst countries when it comes to learning other cultures and this is reflected in how American business people conduct business in the global markets. Not far behind is Europe.

It continues to surprise me that the USA and Europe are not as culturally aware as they should be both in business and socially when they go to other countries on holiday/vacation. Why, you may ask, am I surprised?

Let’s take the United States, which had a culture of its own here before the Europeans arrived. As the Country grew, many people came here; either of their own free will or were brought here by force. A large part of what is now the USA belonged to Mexico and, of course, in the post WWII years, there has been a large influx of people from Asia.

So the USA comprises of multiple cultures within its own shores including:

• Native American Culture
• Western Culture
• Eastern Culture
• Latin Culture
• African Culture
• Middle Eastern Culture

Since they don’t seem to be able to gel within the USA, maybe it is not so surprising that America does struggle to learn and accept other cultures when conducting business overseas. This, in turn, has a negative impact on the business and we want everyone to become culturally aware so it has a positive impact on your business.

As for Europe, before the EU, it was a mixture of many cultures and traveling between countries required that you showed your passport to enter each country, whether by air, road or sea.

The EU was originally formed as the EEC in 1958 and it was not until 1993 that the name changed to the European Union (EU). So this experiment, as it was back in 1958 now, some 55 years later, has a membership of 27 Countries.

Anyone who has conducted business in Europe knows that the inter-country rivalries and prejudices still exist and the different cultures still clash, particularly between the stricter Northern European business culture and that of the more relaxed one of the Southern Countries. This has been apparent during the financial crisis that has been raging in Europe for the past 3-4 years.

One lesson that the rest of Europe – including the UK – could take from their Northern European competitors is the way they support businesses to expand and innovate. Very little of this support is available in the Southern Countries.

I include the UK in this analysis because successive governments – and the current one in particular – have not paid attention to developing SME’s who need encouragement and support in order to compete. Ignoring this segment of industry, leads to a drop off in innovation, the quality of goods and services and, by extension, the long term success of SME’s and their ability to create much needed decent paying jobs.

Go back to the institutions that are key in shaping culture and note that Corporate, Education, Government and Science are 4 of these key points. Take those out of the equation and culture suffers.

If the US and Europe still has problems understanding and accepting the various cultures within their own borders, it is not surprising they struggle and have a bad reputation elsewhere in the global business world.

Culture is something we all share and really shapes our personal qualities and those of our respective societies. Culture is the sum of our inherited beliefs, values and knowledge and by learning the beliefs, values and knowledge of others, we will be more complete, more tolerant and much better global business people with more refined global social skills.

It really is easy and my wish is that more take the time to learn other cultures because it will only lead to SUCCESS. Now what is wrong with that?

To learn more about Global Sales and Business Expansion, contact the author for an initial consultation at:

david.keenan@lafayette-consulting.com

This week I had a long and very interesting discussion with another International Business and Marketing Specialist who is originally from the US but presently lives in and operates her business out of Europe.

Because of the nature of this blog, in the interests of full disclosure, I was born, raised, educated and worked in Europe until I came to America and have spent the last 26 years helping US and European Companies expand their businesses internationally.

In the current financial situation, the two largest economies – The US and the Eurozone – are deleveraging and almost stagnant. The market opportunities for expansion are all focused on other regions of the world like Asia, especially China and India, Latin America, especially Brazil and the Middle East, especially Israel.

A lot of emphasis is being made by International Business Specialist, including me, about how the business cultures in Asia, Latin America and the Middle East differ so much from those of the United States and Europe and how business people in the US and many European Countries are still slow to learn about and adapt to other global business cultures.

What is not talked about so much in the USA – except in political promises that are not kept – is the entrepreneurial and business development opportunities that still abound in the Global Markets. The natural culture of US business-people is still a leading one as far as the entrepreneurial spirit and new business concepts are concerned.

One aspect of many US business models, as we know from many successful software businesses, is that US companies don’t spend endless time designing the perfect product. The tendency is to respond as quickly as possible to known customer demand, act, build knowledge and improve the products as they receive customer feedback and develop improvements.

Many other countries, like Germany for example, would not accept a new version of US software until it had been tried, tested and “be-bugged” in the field. Therefore, it was not unusual to find that German companies used an older version of the available software.

That being said, while one could argue that the US entrepreneurial “get the product to market approach is not always welcomed, the fact is that most European companies do not have this same entrepreneurial flair or risk taking tendencies. Per the article highlighted here, in 2010, there were only three European companies with revenue of more than €1 billion and they were SAP in Germany, Sage in the U.K., and Dassault Systems in France.

Germany has always been recognized as the leading manufacturing country in Europe with a superb reputation for high quality products. However, in the modern, fast paced Global marketplace, the very qualities that made Germany a leader, may start to hold it back. It’s very concise, methodical, engineering driven approach to developing perfect products may become more of a hindrance than strength in the fast expanding global economy.

Because of the Social System in Europe, most people have been used to a comfortable, job security state of mind and the emphasis in education is to train for a job and not to start your own company. So the primary mind set was get a good education and find a secure, steady job. That was the way it was when I was growing up.

In a previous blog, I stated Entrepreneurs are special people and I believed would be the foundation for the recovery of the US and the Eurozone economies, as the world’s two largest economies. Based on what I am hearing from leading European investors and entrepreneurs, Europe does not seem ready to meet that challenge. .

Israeli companies seeking to develop products that will sell in the Global marketplace, are meeting the challenge and we are seeing a similar approach from Brazilian companies as they take advantage of the economic growth their country has experienced in the past few years.

Israel with its’ small population, has been focusing its’ efforts encouraging and supporting an entrepreneurial spirit in its’ SMB’s and the efforts are proving to be successful. As with any such efforts, there are failures – that statistic never changes which ever the country – but Israel has nurtured a lot of successes.

Brazil, with a much larger population, has improved its’ economic position in the world via the efforts of its entrepreneurs. With the entrepreneurial boom in Brazil, 96% of all jobs are provided by SMB’s.

From 2001 – 2010, the unemployment rate in Israel averaged close to 8.5% but in January 2013, it stood at 6.5% and in that same decade, Brazil averaged close to 10% but in January 2013, it was 5.4% up from the record low of 4.6% in December, 2012 and both improvements are testimony to the emphasis of encouraging entrepreneurs.

Is this a lesson the US can follow? As an entrepreneur and small business owner I, for one, hope it does and the sooner the better.

David.Keenan@lafayette-consulting.com 

Globalization requires you learn the Cultures of the Countries with which you want to conduct business. Ask your Channel Partner, read books or hire an International Business Specialist to help you in the early stages.

Develop excellent listening skills and learn to communicate. As much as you learn about the cultures of others, tell them about yours.

Adapt your product because in the Global Village, one size does not fit all requirements. Be aware that what you may think is a reasonable price in – say – the US or UK, could be a luxurious price in other countries. If you pricing your product based on your UK or US price, you may be pricing yourself out of some international markets so do your due diligence.

If you are taking a gift for your Client or Channel Partner, first be aware of your own company’s policy because some are very strict. Then be aware of the different attitudes towards gift giving in the country (ies) to which you are going because some will view them as a bribe, while others as perfectly acceptable means of conducting business. Also be cognizant of the local value of that gift because you may be over exuberant and create an uncomfortable situation.

If you are working with the US or Foreign Governments, the US Office of Government Ethics have some strict guidelines, which you should know. Some years ago, when conducting business via an in-Country Agent with the Thai Military, the Agent gave me a gift of a silk tie with cufflinks and a tie clip while in Thailand. As we were obliged to declare any gifts over $20 in value individually and $50 in value in any calendar year from one source, I reported it to our office in Singapore while I was still in Thailand. My assessment, based on equivalent goods in the US was close to $100. Imagine my surprise when I was told the local value was less than $20.

Similarly, be aware of the cost of an invoice when dining out with clients. Again, you may be tempted to say that the cost was low or, even worse, “surprisingly cheap” when in that country, it is very expensive. Think I am exaggerating? One of my clients was taken out to dinner in Hungary in the early 90’s as the country was trying to re-establish itself and was taken to a top restaurant. His host paid but my Client saw the bill and said that the cost was very low. His host told him that the only way he could afford it was because his company was paying for it. The cost would feed his family of four for about 2-weeks. At the time, the cost of the meal for 2 people was almost 20% of his monthly take home pay. Things have improved since but Budapest is still an expensive city if you dine at the finer restaurants.

If you are from an English speaking country, ask about localization and don’t assume that your English version is going to suffice everywhere.

Always be aware of the political situation in countries with which you are not familiar and check regularly with the State Department who keep you updated with potential risks. A sudden political change of power or policy can impact your business, including such events as nationalizing business or confiscating imported goods because they decide to ban products from the US as Venezuela did a few years ago.

Similarly, learn the import and customs practices of different countries so you can educate your Clients and talk to the in-Country Channel Partner about all aspects of importing into particular countries. For example, if you are importing goods into Brazil, they have strict and time consuming licensing and import rules for many goods. If you don’t follow the process exactly and make sure everything is in place, your Client could find his goods sitting in customs for months. Some products will be scrapped after a certain period if they have not cleared customs and the onus is always on your Client and the in-Country Partner to ensure all is in order.  This is a common occurrence and your Client has no redress against the Brazilian authorities. The goods will be lost forever, whatever their value.

Be aware of your non-verbal communication and gestures. For example, gesturing for someone to come to you in the US or Europe is different in Asia. In the USA and most parts of Europe, we tend to hold our hands up with palm out and gesture with our finger(s) for the person to come over. In many parts of Asia, the palm is down, the hand if flat and the fingers are used in a rolling gesture. So learn and be sensitive to such nuances.

While taking your company and its products into the International Markets can be exciting and rewarding, if you don’t bother to learn about the different business cultures, everything can fall flat and it could take you years to recover and make your way in the global marketplace. It does not take long to earn a bad reputation and, often, a bad one is built faster than a good one.

Remember to think about the CULTURES of others, learn and respect the difference.

Communicate openly, ask questions about cultures. Be prepared to answer ones about your culture

Unbridle yourself from pre-conceived ideas about the cultures of others

Learn from others about their culture so you are respectful and effective when conducting business

Teach others about your culture so they are aware how business works in your country

Understand what you have learned and taught others because you may learn more than you thought you knew about your own culture in the process

Review what you have learned and taught others on a regular basis

Experience success as a result of your openness to learn and teach about business cultures

It is not difficult if you approach it with an open mind and a willingness to offer at least as much as you learn. Remember, others may be unaware of what works in your country and why you behave a certain way in business. It is all about the multitude of different cultures and etiquette with which we are all raised within our respective different countries and religions.

Culture has a number of definitions but there is a commonality in the meanings:

• The behaviors and beliefs characteristic of a particular social, ethnic, or age group
• The quality in a person or society arising from what is regarded as excellent in arts, letters, manners and scholarly pursuits, among others.
• A particular form or stage of civilization, as that of a certain nation or period.
• Development or improvement of the mind by education or training

All common to most of the world but they differ in importance and definition depending where you are in the world. Therefore, as previously recommended, don’t assume that everyone’s cultural definition to the various aspects that make up a Culture, are the same as yours. China, for example, has much different business cultures than does the USA.

References used in this blog:

1. World Business Culture – www.worldbusinessculture.com
2. The Global Village – Marshall McLuhan – www.marshallmcluhan.com
3. International Business & Gift Giving – http://international-business-center.com
4. The US Office of Government Ethics – http://www.oge.gov
5. List of Countries in Europe by Average Monthly Wage – http://en.wikipedia.org
6. Localization – http://en.wikipedia.org/wiki/Localization
7. US State Department (Embargoed Countries) – http://www.state.gov/aboutstate/
8. Understanding Brazil’s Import Regulations – http://www.rosalienebacchus.com
9. Non Verbal Communication – http://en.wikipedia.org/wiki/Nonverbal_communication
10. How To Teach Business Etiquette – http://www.ehow.com
11. Knowing International Business Cultures is Key to Your Success from Lafayette International Business Consultants, LLC  http://goo.gl/6eps1
12. China Cultural Etiquette – e Diplomat – http://www.ediplomat.com

The EU is experiencing a lot of political and economic unrest. I have read a lot of different opinions about these crises and the ability of the EU to move forward. From a business perspective, I have experienced firsthand many of the issues and questions being raised, not just in the EU, but globally and have spoken to my business and personal connections in Africa, Asia, Europe and Latin America to gauge their opinions.

While the theme of this blog stemmed from the numerous articles and comments made about the European Union and the Eurozone, I have asked the same questions with my connections in the growing economies in the BRICS Countries and, of course, what is going on in here in the USA at the moment.

Worthy of note is that in April 2011, South Africa joined the BRIC Countries – Brazil, Russia, India & China – at the third summit of the BRIC Countries in Sanya, China. In March 2012, the five countries met in New Delhi, India to discuss the formation of a development bank to pool resources. At that time, just 12-months ago, this newly formed BRICS group of countries accounted for about 20% of the World’s GDP and 40% of the World’s Population.

Compare the GDP and Population of the BRICS Countries with that of the EU, which accounts for 23% of the World’s GDP and about 7% of the World’s Population. The USA accounts for 20% of the World’s GDP and about 5% of the World’s Population. These facts are interesting because while the BRICS countries account for approximately half of the GDP of the EU and US combined, they have a much higher combined population. However, the BRICS are very low when it comes to the GDP/Capita Table.

• EU and the USA account for 43% of the World’s GDP and 12% of its population.
• BRICS Countries account for 20% of the World’s GDP and 40% of its population.

As much as people in the US are disenchanted with their elected official in Washington, DC (putting it mildly) many people in the EU are as disenchanted with way it is governed and the ever increasing regulations issued by Brussels and/or Strasbourg.

What annoys people in the EU about Brussels include:

• A lack of transparency
• Distrust of a complex central government with far too many institutions
• The growing influence of the European Council
• The dominance and growing divide of the German-Franco  influence on the Eurozone
• Far too much regulation – as noted above

Far too many people in the EU feel they don’t have a voice and, are, effectively powerless and impotent. They are frustrated and impatient with the lack of progress and polls show, on an increasing basis, that many of the residents of the EU feel it is unwise to continue with any further expansion of the EU. Some, in fact, want their country to leave the Union.

There is a growing lack of confidence in the EU surviving as a Political Entity. Was the project too ambitious, given the many cultural differences and business practices within the EU? Will it survive with, effectively, the big two having most of the power economically, politically and logistically?

The interesting corollary is that, as the US has grown and its cultural mix has become much more diverse, we are facing a lot of the same questions and concerns. Instead of trying to adapt to the changing demographics of the United States, many in elected positions of power, appear to want to ignore it and turn back the clock.

Think about the issues people complain about concerning the Government in DC.

• A lack of transparency
• Distrust of a complex central government with far too many institutions
• The growing influence of the Lobbyists 
• The Dominance of the Corporate Money influence – like Oil, Pharma, the MIC
• Far too much regulation

The majority of people in the USA feel they don’t have a voice and, are, effectively powerless and impotent. They are frustrated and impatient with the deadlock and lack of progress in DC. In particular, they don’t like the “who cares” attitude of many politicians. The first session of the 113^th Congress in 2013 plans to “work” for 126-days and this is less than 2½ days per week with, of course, no weekends included in the schedule.

There are polls that show that the public disapproves of Congress at historical low levels and there major doubts that the Federal Government here can continue to survive as a Central Government. An increasing number want to see more power being passed to the individual States.

I am sure if we looked at other Countries like, for example, the BRICS countries, we will find many similar problems and frustrations about Government and Big Money (from whatever source) having too much power and influence. Brazil, as an example, is currently experiencing the trial stemming from the Mensalão Scandal that first broke in June 2005.

That being said, of the emerging countries, Brazil’s government is considered by many to be the least corrupt of the BRICS countries and the most democratic.

So, if the majority of the populous in the EU, the BRICS Countries and the USA feel powerless and that they don’t have a voice, how long can this continue before we reach the “famous” straw that breaks the camels’ back? After all, we are talking about countries that account for 63% of the world’s GDP and 52% of the world’s population.

Of course, there are a lot of pro-European expansion people, lots who are confident the USA will recover and move forward and that the hiccups being experienced by the BRIC Countries will soon go away.

The #EU as an entity has the biggest #GDP globally.

Individually, the USA is #1, China #2, Germany #4, France #5, Brazil #6, India #9 and Russia #10 so we have the USA, all the BRIC Countries and the two powerhouses in the #EU in the top 10 GDP’s worldwide. The other 3 that comprise the top 10 are #3 Japan, #7 the UK and #8 Italy so the EU has 3 countries in the top 10. South Africa, the new member of what are now the BRICS countries, is ranked #29 by the IMF and the CIA World Factbook.

Do the above Stats concern you? Do you think the EU will survive the crises and will the USA still maintain an increasingly ineffective centralized federal government? As the BRICS Countries are all well down the list as far as GDP/Capita is concerned, will they continue to grow and be more influential?

For anyone involved in International Business, these are factors that can impact our operations and, in the case of Companies like ours, the ability of our clients to continue to expand globally. What are your opinions on these important matters?

Are we the People and the Small Business Owners simply “Voices in the Wilderness” or can we influence matters with our respective governing bodies?