I want to move to New Zealand

With everything going on, I think it's time to for a change. Does anyone I know have knowledge regarding opening a Yoga Studio in New Zealand?

As an “Air Force Brat,” I love this planet and don’t like to admit where I’m “from,” because I don’t really know. I do know, it’s easy to see how most of our neighborhood businesses could benefit people in different countries. Think of all the books, movies, songs, TV Shoes, stories, religious works, etc. that have been translated to share internationally; why wouldn’t we want to make the world a better place by creating a greater sense of community? In this article, I’ll explain the different Types of Business Environments, Examples of these Organizations, the Benefits of global Expansion, and Ethical Considerations.

What if all of your favorite things were available to you wherever you were? In the book The Hitchhiker’s guide to the Galaxy, there was a machine that you stick you head in, and it would read your mind to make the thing you crave.1 With the increased rate of globalization, which is the shift toward a more interdependent and integrated global economy, this dream could be well within reach. Globalization has brought McDonald’s and Starbucks to hundreds of countries around the world and creates greater opportunities for international business.2 In my personal experience, little of what we own today would be available without globalization. 

So many businesses/brands we see on a daily basis aren’t truly local. I spent the last 10 years in the Home Appliance Industry as a District Sales Manager for Companies like LG, Dyson and more. In the greater Boston area, where I live, even the local Appliance store isn’t local; it’s a part of a regional purchasing group, so the smaller companies have a chance to complete with the Home Depots and Best Buys. Why wouldn’t Mr. Smith, who owns the NorthBoston Appliance shop, retire to the Bahamas and open another shop down there, too? Organizations are considering global expansion and multi-national operations due to many contributing factors, including but not limited to saturated local markets or high-profitability potential in foreign markets. When you think about your business or industry, do you feel like it would be a great addition to a community or culture in a different land?

Identification the type of business environment to foster globalization is going to need to align with your company’s mission, like finding a labor/supplies in another country to manufacture a good as an importer, exporting your products, or going in on some kind of Foreign Direct Investments (FDI) to improve infrastructure elsewhere to enhance your business’ goals and meet the expectations of the stakeholders. Domestic and international business environments can be reciprocal or independent by nature depending on the industry. 

Importers are usually benefiting the exporter with currency, while exporters are benefiting the importer with material goods. Dyson, for example, is a British-based company with offices all over the world and manufacturing plants in England, China & Malaysia. In Malaysia, it was reported that caution was needed in regards to infrastructure growth because the FDI is less than the expense to modernize many facilities.3 Whole Foods, with over 500 stores in 3 countries,4 is huge importer of goods from all over the world. McDonald’s invests in lower-income areas with FDI5 and community building projects as it surpasses 38,000 locations in over 100 countries.6 Exxon, the USA’s largest exporter, as it drills for Petroleum and sends it around the world.7 

However, none of these companies would be as great successes as they are without globalization. Imagine an airport without a McDonalds. Imagine being stricken with an auto-immune disease and needing to eat Gluten free. Imagine driving around in Turkey needing a Gas Station. For Domestic Businesses, and most stakeholders, growth is the key to success; increase profits by selling more. But, where? How? To grow is to take what you have, take the best of that, and copy it elsewhere for similar or better results. To grow internationally is a giant leap for any business. The benefits can be financial, cultural, mental, or spiritual. For Whole foods, they bring a more Nature approach to those who like that kind of thing. From McDonalds, you can have your 2000 calorie meal anywhere in the world. Exxon, making huge strides in revenue records in 2019, was hit hard by the lockdowns and had a $20 billion loss in Q4 of 2020. So, even with an international footprint, there are benefits and threats.

Usually, international business affairs aren’t just as easy as making a purchase.  In business, and life, we take ethics into account for decision making. When expanding into a new market, especially internationally, a business must consider the local culture and conditions in the place it is considering doing business in. For example, it wouldn’t be a good idea to open a Ruth Chris Steakhouse in New Delhi, India, because Indian people generally consider Cows as sacred animals, and even let them roam the streets. Meanwhile, Venezula is among the hardest countries to get credit, do taxes, conduct cross-border trading and has unfavorable investor protection laws.8 And, in some countries, like Kenya, bribery is commonplace. Some of the cultural norms in other countries can seem outrageous to outsiders. As an international business person, one must take several things into consideration; the law here & there, and it’s important to understand the cultural norms.

Ultimately, the decision to get out of Dodge or introduce international offerings to your business will depend on your level of comfort with the risks involved with working with people in other countries, who you will rarely see and must trust. If you are a Wanderluster, like me, you’ll be blindly optimistic, but if you can be a reasonable business person, you’ll think carefully about all aspects of the business, and how the transition to a global enterprise can benefit your company’s mission, vision and goal.

References

1.        Hitchiker’s Guide to the Galaxy, NYC, NY. Penguin Publishing House, 2002

2.        https://mbsdirect.vitalsource.com/#/books/978-1-4533-9363-5/cfi/29!/4/[email protected]:37.6

3.        https://www.malaymail.com/news/money/2019/02/27/malaysian-manufacturing-sector-expects-cautious-growth-in-2019/1727499

4.        https://en.wikipedia.org/wiki/Whole_Foods_Market

5.        https://corporate.mcdonalds.com/corpmcd/investors.html

6.        https://en.wikipedia.org/wiki/McDonald%27s

7.        https://www.worldstopexports.com/united-states-top-10-major-export-companies/

8.        https://www.cnbc.com/2011/11/03/The-Worlds-10-Worst-Countries-for-Business.