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complete a Word doc written summary of each of the articles (in one combined document, with each video labeled separately, length about ½ page per articles
New Trends in International Business (by BB Global,
2022)
Here are a few of the trends experts anticipate and why they’re
important for international business.
Environmentally-Friendly Technologies
Local, state and federal governments continue to strengthen environmental measures. Going green now
may help a business get ahead of the curve, and they may enjoy tax benefits when they adopt
innovative techniques and processes now, instead of later. Besides regulatory compliance,
environmentally-friendly technologies can also lead to long-term savings. Increasing energy efficiency,
minimizing waste, and adopting innovative software to streamline processes are all excellent methods
to help a business reduce their environmental impact and spend less.
The growing concern for the environment has also led consumers and businesses to re-examine the
products and services they buy. Fortunately, going green can help build trust, extend a company’s
market base, make the company a more attractive option for employees and improve its standing in the
community and business world.
Tailored Artificial Intelligence Platforms
Many companies already use AI or are considering it because it can improve business operations and
customer service. Until recently, most companies could only afford to access AI through broad as-a-
service platforms that required expensive custom engineering to meet a company’s specific needs.
Companies can expect to see a larger pool of providers other than the current tech giants. They’ll offer
tailored services and applications for specialized or specific tasks, making AI available to SMEs too.
According to Adobe’s 2019 CIO Perspectives Survey, almost 80% of chief information officers at U.S.
companies plan to increase the use of artificial intelligence and machine learning. IDC predicts 75% of
enterprises will embed intelligent automation into technology and process development by 2022 and by
2024 AI will be integral to every part of their business.
Adoption of 5G
No company can afford to ignore mobile technology, and 5G is likely to be very popular as it delivers
more speed, reduced latency and a smoother online experience. Besides the obvious benefits to buyers,
5G can also improve teamwork and business agility. Early 5G adopters may have a distinct advantage
over slower competitors. Ericsson reports the uptake of 5G is happening more quickly than expected.
They predict 5G networks will carry 35% of the global mobile traffic by 2024.
Broader Blockchain Application
Initially, blockchain technology supported Bitcoin. Today, it demonstrates many other uses for business
due to its enhanced security and decentralized ownership. In 2019, Gartner predicted “the business
impact of the blockchain will be transformational across most industries within five to 10 years.”
Banking, investment services, and retail are most likely to show interest, but McKinsey & Company
suggests it could benefit any business. For instance, blockchain can improve efficiency and secure smart
contracts and transactions, regardless of the number of contracts or cross-border payments. It can also
increase supply chain transparency and counteract theft and fraud. Gartner suggests blockchain will
support the movement and tracking of $2T of goods and services annually by 2023.
Greater Need for Data Privacy & Protection
The growing threat of cybercrime makes the protection of data more important than ever. Companies
must take proactive measures if they want to gain new clients, retain their existing client base and meet
ever-increasing data privacy regulations. Cloud and mobile security measures will take the forefront as
business and consumer rely more heavily on off-site storage and mobile devices. Building consumer
trust and effective customer relationship management remain paramount for business success.
Gig Economy Grows
The need for skilled workers in foreign countries increases as businesses expand globally. Luckily,
according to a report issued by BCG Henderson Institute, gig platforms increase access to a variety of
talent difficult to source through traditional labor markets. This is especially true in emerging countries
where gig work has grown by more than 30%. Those living in the region often have advanced skills and
in-depth area knowledge. Many countries are focusing on a national workforce and impose legislative
barriers on foreign workers. Hiring internally sidesteps this issue.
Expect to see more freelance and contract work as it often preferred by workers and business. Many
people don’t want to commit to full-time employment and companies may want to test the waters
before they commit to an employee.
Single-Firm Outsourcing
Most companies see the benefits of outsourcing many of their in-house functions such as payroll,
accounting and HR. However, few have the time or inclination to juggle multiple companies. It makes
lateral communication and reporting almost impossible.
As a result, we can expect to see more companies turning to a single company to provide multiple
services. They have one point of contact with their outsourcing partner and this company is responsible
for performance and delivery. This leads to greater efficiency and transparency, quicker response times
and more accountability. A single-source model also offers cost savings as everything is executed by one
company. This simplifies processes and often includes lower prices than if the company sources services
from multiple companies. This allows the business to leverage better economies of scale, which can
lower consumer end price. Relying on a single provider for multiple services also provides a better
employee and customer experience. The provider ensures consistency in all transactions and trains
employees to use software properly. Business can tap into greater expertise and skill for specific tasks
while devoting more time to company growth. Outsourced services can also scale with the business as it
grows.
- New Trends in International Business (by BB Global, 2022)
Here are a few of the trends experts anticipate and why they’re important for international business.
United States-Mexico-Canada Agreement
The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA,
which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for
North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced,
reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.
Agreement highlights include:
• Creating a more level playing field for American workers, including improved rules of origin for
automobiles, trucks, other products, and disciplines on currency manipulation.
• Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening
food and agriculture trade in North America.
• Supporting a 21st Century economy through new protections for U.S. intellectual property, and
ensuring opportunities for trade in U.S. services.
New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a
chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the
Agreement.
USMCA: https://ustr.gov/usmca
https://ustr.gov/usmca
Deborah Laloum, BRNGG
Staying on top of delivery and supply chain trends will be critical for all retailers who want to remain
leaders in 2023.
If there’s anything this year has taught us, it’s the challenge of making any supply chain and delivery
predictions in such a dynamic economic and political environment.
Increases in fuel, disruptions in supply chain, and increased labor costs have severely impacted retailers’
margins. It has also contributed to a cycle of inflation over the last few years that includes a jump from
1.2% in 2020 to 4.7% in 2021. It’s getting even worse with the International Monetary Fund predicting
a worldwide inflation rate of 8.8% in 2022.
These factors are influencing both businesses and consumer behavior. On the consumer side, higher
prices and erosion of real wages by an average of 8.5%, have led to less overall spending and an increase
in online shoppers looking only for deep discounts and special offers.
The flip side for retailers is learning how to cope with increased competition, supply chain uncertainty,
higher delivery costs and shrinking margins – all while still trying to satisfy consumers’ desire for low
prices, omnichannel delivery options and a smooth customer experience.
Larger retailers such as Macy’s and Walmart are better equipped to weather the storm caused by lower
sales growth and lower prices. For other retailers, however, it’s significantly more challenging.
According to a report from Alignable, due to a significant decrease in orders, labor shortages and supply
chain uncertainty, 59% of small retailers could be shutting down over the next year.
With that background in mind, here are the top 8 delivery and supply chain trends that retailers should
prepare for in 2023.
Top 8 Supply Chain Trends for 2023:
1. Rising supply chain and delivery costs
2. Difficulty in maintaining customer loyalty
3. Acceptance of managing complex operations
4. Collaboration between online retailers
5. Diversification of delivery partners
6. Digital transformation
7. Reducing environmental impact
8. Adoption of holistic technology platforms
https://www.alignable.com/forum/special-report-47-of-smbs-in-jeopardy-fear-closing-by-fall
https://www.dallasfed.org/research/economics/2022/1004?utm_source=cvent&utm_medium=email&utm_campaign=dfe
https://www.imf.org/en/Publications/WEO/Issues/2022/10/11/world-economic-outlook-october-2022
-
8 Delivery and Supply Chain Trends to Expect in 2023
Top 8 Supply Chain Trends for 2023:
136 countries have agreed to a global minimum
corporate tax rate. Here’s what it means
Nov 1, 2021, Reuters
With budgets strained after the COVID-19 crisis, many governments want more than ever to discourage
multinationals from shifting profits to low-tax countries.
136 countries have signed a deal aimed at ensuring companies pay a minimum tax rate of 15%.
The countries behind the global minimum tax rate together account for over 90% of the global
economy.
The OECD, which has steered the negotiations, estimates the minimum tax will generate $150 billion in
additional global tax revenues annually.
A global deal to ensure big companies pay a minimum tax rate of 15% and make it harder for them to
avoid taxation has been agreed by 136 countries, the Organisation for Economic Cooperation and
Development said on Friday.
The OECD said four countries – Kenya, Nigeria, Pakistan and Sri Lanka – had not yet joined the
agreement, but that the countries behind the accord together accounted for over 90% of the global
economy.
Here are the main points of the accord:
Why a global minimum tax rate?
With budgets strained after the COVID-19 crisis, many governments want more than ever to discourage
multinationals from shifting profits – and tax revenues – to low-tax countries regardless of where their
sales are made.
Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual
property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their
traditional home countries.
The global minimum tax rate and other provisions aim to put an end to decades of tax competition
between governments to attract foreign investment.
The next step is for finance ministers from the Group of 20 economic powers to formally endorse the
deal.
How would a global minimum tax deal work?
The global minimum tax rate would apply to overseas profits of multinational firms with 750 million
euros ($868 million) in sales globally.
Governments could still set whatever local corporate tax rate they want, but if companies pay lower
rates in a particular country, their home governments could “top up” their taxes to the 15% minimum,
eliminating the advantage of shifting profits.
A second track of the overhaul would allow countries where revenues are earned to tax 25% of the
largest multinationals’ so-called excess profit – defined as profit in excess of 10% of revenue.
What happens next?
Following agreement on the technical details for the global minimum tax rate, the next step is for
finance ministers from the Group of 20 economic powers to formally endorse the deal, paving the way
for adoption by G20 leaders at an end October summit.
Nonetheless, questions remain about the U.S. position which hangs in part on a domestic tax reform the
Biden administration wants to push through the U.S. Congress.
The agreement calls for countries to bring it into law in 2022 so that it can take effect by 2023, an
extremely tight timeframe given that previous international tax deals took years to implement.
Countries that have in recent years created national digital services taxes will have to repeal them.
What will be the economic impact?
The OECD, which has steered the negotiations, estimates the minimum tax will generate $150 billion in
additional global tax revenues annually.
Taxing rights on more than $125 billion of profit will be additionally shifted to the countries were they
are earned from the low tax countries where they are currently booked.
Economists expect that this global minimum tax rate deal will encourage multinationals to repatriate
capital to their country of headquarters, giving a boost to those economies.
However, various deductions and exceptions baked into the deal are at the same time designed to limit
the impact on low tax countries like Ireland, where many U.S. groups base their European operations.
- 136 countries have agreed to a global minimum corporate tax rate. Here’s what it means
Denmark Tops List of Best Countries in the World for
Doing Business
Forbes, by Simon Constable, Jun 30, 2021
For running a business in Europe, it can be the best of times or the worst of times. It all depends
where you set up shop. In addition, that is something investors need to consider when sinking
money into ventures overseas.
Denmark, the Scandinavian country squished between Germany and Sweden, is ranked the
easiest place to do business in the world, according to the recently published Global Business
Complexity Index 2021.
France came second to worst of the 77 countries ranked. “France’s place as the second most
complex jurisdiction is driven by complexities in accounting and tax processes, and heavily
employee-centric HR regulations,” the report states.
Brazil was the most complicated place to do business. The 77 countries accounting for 92% of
global GDP, the report’s authors claim.
The survey measured the complexity of accounting, tax, and legal matters such as setting up and
maintaining a corporation or other business entity, as well as human resources and payroll rules.
The report finds that ease of doing business does not necessarily go hand in hand with the size of
the market: “A continuing observation, from our now eight years of reporting on complexity, is
that some of the most attractive markets to operate in are both the most complex and the most
punitive for getting things wrong.”
Tougher Regulations for Employing People Emerge
Rules regarding employees are getting irksome almost no matter where you locate your business.
During 2020 it became harder to dismiss employees without giving a reason. Moreover,
government of Argentina now says it is against the law to fire workers, “for any reason,” the
report states.
“Our experts predict that employers will continue to see the rise of pro-employee legislation,
which simultaneously encourages companies to act responsibly in their local communities and
increases the level of complexity that they must navigate.”
It Should Matter to Investors
Investors should consider the tradeoff between investing in a country with a complicated
business environment against the potential profits that can be made in that country.
For instance, the USA, still ranks near the top of the countries with the least complicated
business environment and is by far the richest country in the world.
Meanwhile, Argentina is one of the most complicated places to do business and has a dodgy
economy that is around $400 billion in size, compared to $21-22 trillion for the U.S. In other
words, the US still remains a good bet and Argentina is not.
United States (one of the top 7 countries in which to do business)
The USA has a simple legislative environment, particularly at the federal level, though
differences between states can add to complexity for businesses.
The accounting system in particular is predominantly trust based, as there are no requirements to
submit accounts, contrasting with other locations in the Americas where monthly reporting
requirements are often incredibly detailed.
The incorporation process is simple and sequential, despite requiring communication with
multiple levels of government. Companies are required to notify the local state government of
their wish to incorporate, before requesting a tax ID from the federal government, which is
usually returned in two days if the process is done online. The tax ID then enables a corporate
bank account to be set up, meaning the entire process of getting a business up and running often
takes around two to three weeks.
However, regional complexity can come into play when it comes to ongoing entity management.
Taxes are decided at state level, so there are different taxes paid in different states, as well as
different thresholds for those same taxes. Income taxes are also levied at state level, so
companies that employ workers across various states will have to keep track of local payroll
practices – something that has become more common as remote working has become more
prevalent throughout Covid-19.
There are possible distant changes to the tax system, with a new president setting out an agenda
of corporation tax increases. However, any changes will take time to implement as they will have
to be debated and ratified, giving corporations enough time to act.
- Denmark Tops List of Best Countries in the World for Doing Business
Forbes, by Simon Constable, Jun 30, 2021
United States (one of the top 7 countries in which to do business)
