What are the barriers that we see when it comes to investing in businesses abroad, or starting a business in another country?

The biggest challenge for me would be as far as setting up a retail business:

Custom tax on merchandise:  Can you predict how much they will be?  And how can you incorportate that to not scare people away?

How do you set up this income earned as far as taxes go?

I think the most important thing is to have someone on the ground that you trust.  Countries like Ghana are trying to build business in their country and are offering dual citizenship to people who do.  Kenya has removed its custom duty on computers to promote computer imports in the country.  Taxes on goods are standard and custom duty plays a part in how much you pay. 

Cost to operate in the foreign country is MUCH less than it is here so you pay people more than what the average person is making there, but less than what you would pay here (1 Kenyan shilling (100 cents) is equal to $72).

Because you are exporting American goods you are helping build the American economy and the Import Export Bank of America (can`t remember the formal name) is VERY interested in promoting the export of American goods.  They help you with information, feasibility studies and more.  I will post the correct name and the website in a bit!

Blu,

I`ve been running an international distribution channel that is growing every couple of months.  I would definately agree with your post about finding someone you can trust.  I had the opportunity to work with my distributors for 6 years in a different capacity before I approached them to become a distributor for my company.   You need to do your homework before doing anything with a company. Get references, find out who other companies are doing business with,  use current partners to recommend other potential partners.

I`ve had a couple of experiences where I went with a distributor contrary to the recommendation from current distributors.  I ended up cancelling the contract as they were destroying the market in that country. 

I don`t have any experience in the retail world, but I believe the same concepts apply.   

Very much so.  I actually would like to set up a feasibility safari to kenya where we set up business people from the states with business people in the country.  It would be a 2 week trip  (to allow for jet lag recovery) and would include a safari tour, business mingling over dinner in 5 star restaurants and more.

I think getting to meet people in a relatively relaxing atmosphere would help encourage the flow of discussion and maybe spawn some great ideas.

-Blu.

Hey bluepanther,

Did you find the formal name of that Import Export Bank of America?  That sounds interesting as far as getting information.

Thanks

Here it is:

Export-Import Bank of the United States http://www.exim.gov/  Good luck!

 

Thank you very much

You are welcome.