The Korean people

1. CONCEPTS:

CULTURE: "The customs, arts, social institutions, and achievements of a particular nation, people, or other social group" (Oxford Dictionary, 2010)

HALLYU: "Popularity of Korean pop culture abroad" (Korea, 2010)

2. How is Korean Culture?

Before talking about Korean culture is very important to talk about the country. "The Republic of Korea government was established on August 15, 1948. The President is the head of state and represents the state in international affairs. In case of the President's absence, the Prime Minister will temporarily act as acting President. The Prime Minister is the principal executive assistant to the President. The executive branch, headed by the President, consists of the Prime Minister, the Cabinet, 15 executive ministries, and 16 independent agencies including the Jeju Special Self-Governing Province." (Korea, 2010)

Korean culture is very diferent to own culture, Korean culture is very different from ours, both for the dress, music, customs and all those that is part of the behavior of people living there.

It is wonderful to find the difference of behaviours that people can see with Korean people.

Korean people like the spiritual things, which is reflected in art, literature and many other manifestations and expressions

Korea as a country with strong economy, evidence that culture and expressions are very important, it is beatiful to know diferent manifestations of that. One example of this is the Hallyu.  This "refers to the popularity of Korean pop culture abroad. The genre ranges from movies and TV dramas to pop music, and more. Many local celebrities, including actors and singers, have begun to make a name for themselves across Asia and other regions thanks to the Hallyu boom. These days, some are inspired to aim even higher, looking toward Hollywood."

3. POINT OF VIEW

Importantly, culture encompasses a myriad of experiences, situations and experiences of everyday life, so talk about it long but interesting turns. when we know about other cultures we are enriching our experience, our knowledge and our own culture. When we see countries like Korea, we could make a differentiation between countries with a strong economy and poor economy, and we will find interesting things. Aspects like music or the way people dress can influence the way like we as business administrators formulate strategies in order not only to gain market but also to be a good person and respect others.

 " Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." (Hofstede, 2010)

CYBERGRAPHY

Business. getty image. (online) Available at:

http://www.gettyimages.com/detail/104194197/Digital-Vision

Hofstede (2010) Geert Hofstede™ Cultural Dimensions.

http://www.geert-hofstede.com/

Korea. (2010) culture. [online]:

http://korea.net/index.do

Kwintessential (2010) South Korea: Language, Culture, Customs and Etiquette. [online]:
http://www.kwintessential.co.uk/resources/global-etiquette/south-korea-country-profile.html

Oxford Dictionary 2010 (online)  available at:

http://oxforddictionaries.com/view/entry/m_en_us1237613#m_en_us1237613

MARKETING GLOBALLY

1. CONCEPTS:

MARKETING: "The action or business of promoting and selling products or services , including market research and advertising" (Oxford dictionary, 2010).

STRATEGY: "A plan of action or policy designed to achieve a major or overall aim" (Oxford Dictionary, 2010).

2. Why is important to make decisions based in a Global Marketing Strategy?

When companies plan to expand in the international market, they must take into account the variables that I have mentioned throughout this blog, however one of the most important is the Marketing strategy.

"Marketers use an assortment of strategies to guide how, when, and where product information is presented to consumers. Their goal is to persuade consumers to buy a particular brand or product." (faq, 2010)

When Companies create successful marketing strategies, they are contributing in a right way for an increase in demand of their products in other countries. All the aspects including in marketing strategies difers country-by-country, and therefore that is the importance of analyse needs, behaviours, tastes, and requirements.

The importance of analyse the market should include the marketing orientation, the target market and the marketing mix, to achieve the creation of the strategies that will allow companies be competitive in international markets.

Strategies that fail can be dangerous not only in the long term but also in the short term, this is because there are decisions that could affect the performance of the company. For example a company with low production capacity should restructure its production process well if it wants to enter in foreign markets, because a mistake like this could bring serious consequences such as low satisfaction of customer demand in other countries.Connected with the promotion or brand, there are many errors that can occur, such as language.It is a very important aspect because the same words can mean something different in different places, or even may be something illegal or something that can offending people who have sold the products.

 3. POINT OF VIEW

I think the strategies that companies plan to entry in an international market should be very adaptable to the customer needs.  Many companies that have the sufficient experience to make decisions about marketing strategies to implement in foreign countries are very successful, that could be an example to small companies that want to expand and to explore new markets. There are companies that are not carefull with thi kind of aspects, for example in a the colombian case, the exporters should use tools like proexport or agencies specialized in marketing that can help them to be successful.

"Sometimes you sell when and where you least expect. However, most international sales require a well-conceived and implemented marketing program" (Daniels, 2004)

CYBERGRAPHY

Billboard of siberian tiger. getty image. (online) Available at:

 http://www.gettyimages.com/detail/104503951/Photographers-Choice

 Busunessman reviewing documents. getty image. (online) Available at:

http://www.gettyimages.com/detail/74180567/OJO-Images

FAQ (2010) Marketing Strategies. [online]:

http://www.faqs.org/nutrition/Kwa-Men/Marketing-Strategies.html

John D. Daniels. (2004) International business: operations. USA. 

Oxford Dictionary 2010. (online) available at:

http://oxforddictionaries.com/view/entry/m_en_us1266141#m_en_us1266141

Oxford Dictionary 2010. (online) available at:

http://oxforddictionaries.com/view/entry/m_en_us1294847#m_en_us1294847

 

FOREIGN DIRECT INVESTMENT

1. CONCEPTS

FDI (Foreign Direct Investment): "Is that investment, which is made to serve the business interests of the investor in a company, which is in a different nation distinct from the investor's country of origin."  (Economy Watch, 2010)

2. What is an example of FDI and what are the advantages?

For Pintuco Colombian company, the opportunity to access the Ecuadorian market was magnificent, the reason was lack of capacity of Ecuatorian companies to produce enough gallons of paint, which generated dissatisfaction in market share.

In 1999, Pintuco, acquired all of the firm "Pinturas Ecuatorianas S.A". the participation in the local market of Pinturas Ecuatorianas S.A changed with the entry of Pintuco, wich improved the position in the ecuatorian market.

This is an example of FDI, however there are many companies that use this kind of strategy to improve their perfomance in the market. In the example we can see that the purchase, also benefited the colombian company Pintuco, because it could introduce new product lines and besides to access to a distribution channel to begin a process of sale it products.

The advantages that can offer FDI are:

• "One of the advantages of foreign direct investment is that it helps in the economic development of the particular country where the investment is being made". (Economy Watch, 2010)

One of the aspects is the increase of employment inside of the country if the company plans to hire people in it, but it is not the only reason, FDI helps the economy because the company that makes the investment, could require certain services or raw material inside of the country, so the transactions between them helps the economy to grow.

• "Foreign direct investment also permits the transfer of technologies." (Economy Watch, 2010)

This is very important because of the provision of capital inputs. Companies need technology to do process efficiently, so if a company has it, it can get experience and competitive advantage.

"The creation or absorption of new technology has become a vital component for companies to improve or maintain their competitive position in the market place. Companies operating in sectors where competition takes place on the basis of price alone, such as the extraction or commercialization of raw materials, may rely on new technologies to improve their efficiency in the extraction of raw materials by improving their productive processes or acquiring new machinery and equipment.They may also use new technology to bettercommercialize their products or to improve their management structure, control and communication."

• Another advantage is that incomes increase because of the revenues realized through taxation, consequently this increase the productivity of the countries, due to the economic growth that it allows, because of the increase in the PPP.

On the other hand, the company that makes the FDI, has the opportunity of increase sales because of the new knowledge about the market.

3. POINT OF VIEW

Companies like small and medium-sized business enterprises, could be benefited by foreign direct investment, however if we think only about the companies, we don't consider important and interesting things. The development of countries is very important because it makes it more atractive to foreign companies that could invest in a certain country. Therefore the economic performance of a country should be focused on the improvement of the economic factors, not only about commercial transactions, but also about the life quality, and factors that involve the image and welfare of countries. So it is necessary an internal strengthening before than an external image.

FDI offer several benefits not only to companies but also to people, this is because "FDI may bring new goods and services, allowing the receiving country access to these with the benefit of the local consumers." (Arango, 2010)

 

CYBERGRAPHY

Arango, Oscar. (2010) importance of FDI in the development of emerging countries Application to Colombia and Philippines. [online]: http://www.paclas.org.ph/PAPERS/Arango.pdf

Coin graph. getty image. (online) Available at:
http://www.gettyimages.com/detail/103976352/iStock-Vectors

Economy Watch. (2010) Definition of FDI. [online]:

http://www.economywatch.com/foreign-direct-investment/definition.html

Economy Watch. Benefits of foreign direct investment. [online]:

http://www.economywatch.com/foreign-direct-investment/benefits.html

Overview of contractual agreements for the transfer of technology.

http://www.scribd.com/doc/8998973/Importance-of-Technology-transfer

Reaching for money under water. getty image. (online) Available at:

http://www.gettyimages.com/detail/103880376/The-Image-Bank

 

Incentives to Colombian exporters: A mutual benefit

1. CONCEPTS

Incentives:  "A payment or concession to stimulate greater output or investment: tax incentives for investing in depressed areas" (Oxford dictionary, 2010)

Exportation: "Sales of goods or services to other countries, or the revenue from such sales" (Oxford dictionary, 2010)

Proexport: "Institution in charge of promoting Colombian non-traditional exports, international tourism and foreign investment to Colombia" (proexport, 2010)

2. Which Incentives offers Colombia to their exporters and why are they important?

As people know, both organizations and their employees need motivation to ensure that the actions and activities are productive and efficient. Consequently, exporters

As people know, both organizations and their employees need motivation to ensure that the actions and activities are productive and efficient. Consequently, exporters need also motivation through incentives to promote the efficiency of its exports. When the government provides incentives to exporters in their export efficiency, they are not doing a favor, this is because the country and its economy also benefits. For this reason, Colombia offers to Colombian exporters the following most important incentives:

• FREE TRADE ZONE:

 "Areas bounded national territory where industrial activities of goods and services and commercial activities for the foreign market." (Proexport, 2010)

A free trade zone is important because guarantee faster process by removing obstacles like customs regulations. "FTZs prove to be beneficial both for the importers and exporters, as these zones are designed to reduce labor cost and tax related expenditures." (Economy Watch, 2010). 

The benefit offered by a free trade zone is not unique to the exporter, it also gives to the country advantages, because it helps countries to reduce serious problems such as unemployment to be able to reduce labor costs. Besides that, I think the most important thing is not just having these benefits of the free zone, but the most important thing is to have enough strategies to harness these opportunities.

"Free trade zones help the traders to utilize the available business opportunities in the best possible way" (Economy Watch, 2010).

• INTERNATIONAL TRADE SOCIETY (CI)

“Is an instrument of export support given by the Government, which grants tax benefits through the Tax and Customs - DIAN by which companies aimed at the commercialization and sale of Colombian goods abroad acquired in the domestic market or made by members of the same producers, and / or Services Middle of production destined for export are free of VAT sales tax and / or withholding tax on local purchases.” (Proexport, 2010)

About this incentive, I can point out the same characteristics of mutual benefit, as there are organizations for which in his objective is not to export goods or services, therefore, they gain recognition in other countries to sell their products to the CI, who will then export them to other countries and who also receive the benefit of not taxation from government.

• VALLEJO PLAN

“It is an instrument of export incentives consisting of temporary import Colombian customs territory of raw material and inputs, with full exemption from customs duties and VAT, which is used in the production of export goods.” (Proexport, 2010).

The Vallejo plan helps saving money, because when a company imports raw material to make products or to support services, it don’t have to pay certain taxes, so this allow products to have lower costs and, therefore a lower selling price, so companies can sell them better in international markets and consequently it allows be more competitive.

• ALTEX

 “Is a mechanism created to encourage companies that have made major exports FOB value equal to two million dollars (U.S. $ 2.000.000.00) and the amount exported, directly or through an international marketing company to be more equal to sixty percent (60%) of the value of its total sales in the same period during the year immediately preceding the application to be considered as such in order to access a range of benefits that facilitate their exports.” (Proexport, 2010)

 In ALTEX, there is not VAT causation and other taxation to exporters who meet those conditions, so this make the products and services more competitive in foreign markets.

• UAP

“Is a mechanism created to encourage companies that have made major exports FOB value equal to two million dollars (U.S. $ 2.000.000.00) and the amount exported, directly or through an international marketing company to be more equal to sixty percent (60%) of the value of its total sales in the same period during the year immediately preceding the application to be considered as such in order to access a range of benefits that facilitate their exports.” (PROEXPORT, 2010)

it is important that government give incentives to companies that contribute with the economy of a certain country, and this is an example, because this kind of companies exports million dollars.

• PEX

"Is the operation which, under a trade agreement, a foreign resident buy raw material, inputs, intermediate goods, packaging material, with a national to a producer based in Colombia, providing delivery to another producer also resident in the national customs territory, who are obliged to develop and export the goods manufactured from such raw material, inputs, intermediate goods or using the packing material or containers, according to instructions from the foreign buyer" (proexport, 2010)

3. POINT OF VIEW

"The extent and the form of export incentives vary from country to country depending on the country's economic structure (including its fiscal structure), its resource availability, its export potential, and the effectiveness of export incentives in doing its export potential" (AHUJA, 2001)

To be competitive in changing world and with a high market demand, it requires the support of government, which has to be flexible and recognize that to increase their competitivenes and their products and services are recognized by foreign markets.

I think thare are many opportunities that have Colombian exporters, but the true is that corruption in some cases makes strategies are not implemented and that many operations carried out by companies are illegal, which also harms the country's economy. Proexport is a good tool to know much more about these incentives.

CYBERGRAPHY

 

Ahuja (2001). Export incentives in India within

WTO framework. [Online]: http://www.icrier.org/pdf/rajeev72try.PDF

DIAN (2010). Instructivo plan Vallejo.  [Online]:  http://www.dian.gov.co/

Colombian President Juan Manuel Santos speaking. getty image. (online) Available at:

http://www.gettyimages.com/detail/104554252/LatinContent-Editorial

Economy Watch (2010). International free trade zone. [online]:

http://www.economywatch.com/international-trade/free-trade-zone.html

Invest In Colombia Corporation (2004). Colombia: Businness Overview. [On line]:

http://www.sice.oas.org/investment/NatLeg/COL/Comp_Advant.pdf

Invest in Colombia (2010) Special Import - Export System for Services: "Plan Vallejo". [online]:  http://www.investincolombia.com.co/investment-incentives/special-import-export-system-plan-vallejo.html

Inside Tesco Store. getty image. (online) Available at: http://www.gettyimages.com/detail/104714024/Bloomberg

Oxford Dictionary. 2010. (online). Available at: http://oxforddictionaries.com/view/entry/m_en_us1245671#m_en_us1245671.014

Oxford Dictionary 2010. (online). Available at: http://oxforddictionaries.com/view/entry/m_en_us1257487#m_en_us1257487

Proexport: A useful tool for small and large exporters

1.CONCEPTS:

• PROEXPORT: "Institution in charge of promoting Colombian non-traditional exports, international tourism and foreign investment to Colombia." (Proexport, 2010) 

2. HOW CAN PROEXPORT CONTRIBUTE WITH COLOMBIAN EXPORTERS?

Proexport is a tool that allows the insertion of Colombian exporters to another countries, this is donde through many strategies and mechanisms to ensure competitiveness not only for the company but also for the country.

Many times when a company plans to export its products or services to another country, it is possible that the company doesn't have the required experience to do it,  and when I speak about experience I am not only referrring to the knowledge that a company has of a foreign market or about the strategies that it could implement as "Christine Gibbs Stewart, general manager International Trade with ABL State Chamber, says the first step to export should not be thinking about which market to enter, but looking at your own business and whether it is capable of exporting" (NSW Business Chamber, 2010)

The exportation process comprises a number of items that must be carefully analyzed because otherwise a company could have serious consequences like bankruptcy or "Failures can affect your reputation, be very costly, and make future success harder to achieve.” (Gibbs Stewart, 2010)

Because of the above information companies can use this tool that will allow the follow topics:

1. Identification of market opportunities:

Companies should try to use the best tools and sources for information on potential customers and they should know all the facts required to begin with exportation.

Proexport allows to the Colombian export community to have "updated information on market opportunities for Colombian products in international markets and in turn, provides the internationalcommunity, complete information on the colombian foreign trade, our business and their exports". (Proexport, 2010). For that, proexport have a good tool: The Marketing Intelligence System.

this is very important because a company could identify export destinations to adapt to a nich market depending on the products. For example a medium size company has the opportunity to have information about markets and products, besides this is a free service so this is important because allows small companies to have access when they don't have the economic capability to do it.

2. Design of market penetration strategies: Companies have to design strong strategies that will allow have a competitive advantage with simmilar companies in a foreign companies. For example it is a need that companies take into account strategies of:

•  Production capacity to maintain demand from foreign markets
•  Financial ability 
•  Confront the regulations
• Making the product competitive
• logistics and freight costs
• Others

Proexport can contribute and help companies to design strategies that companies need to penetrate other markets. For example if you want to export furniture to, proexport offers in the webpage a furniture market research of Mexico that can provide information like the strenghts of the sector weaknesses of the sector,

expectations of the industry, the foreign trade performance, fdi, and much more information that is useful to organizations to design and implement strategies and to make decisions.

3. Contact with both sellers and buyers: "If you can visit the country and study its special characteristics, examine the opportunities and identify the competition first hand, do so".  (NSW business chamber, 2010). however, many companies don´t have the experience to contact with another foreign companies, so proexport play a important rol because this institution helps to both sellers and buyers to contact with others.

Proexport is a good tool for entrepeneurs because it not only supports one exportation activity but also supports the process, which sometimes is difficult for inexperienced companies.

"Aditionally, we made alliances with national and international private and public, that we can broaden the availability of resources to support various business initiatives that promote the organization or for developing and enhancing its service portfolio." (Proexport, 2010)

3. POINT OF VIEW

When a colombian exporter has not the sufficient experience to sell products or services in other countries, it is possible that they could fail, this could cause a losses for the company, and more even in the case of medium and small companies which have a poor hability to cope with such challenges.

Many of the sevices are free is better for companies to come up to the help of institutions like proexport that give tools and options to the colombian exporters.

Many companies have failed in the exportation process because they doesn´t take into account the possible mechanism to do it. Colombian exporters has many options, not only proexport helps them to develop their operations in the moment to enter to another market, but also exist institutions like Bancoldex,  or fiducoldex.

CYBERGRAPHY



Bancoldex (2010). Products and services. [online]:
http://www.bancoldex.com/portal_ingles/portal/default.aspx

Canada border services agency. (2010)  Small and Medium Enterprise Centre: A step-by-Step Guide to Exporting. [online]: http://www.cbsa-asfc.gc.ca/sme-pme/e-guide-eng.html

Ministerio de Comercio e Industria de Colombia (2010). [online]: http://mincomercio.gov.co/

NSW Business Chamber (2010). A beginner's guide to export. [online]:
http://www.nswbusinesschamber.com.au/?content=/channels/International_trade/Import_Export_assistance/New_exporters/beginnersguidetoexport.xml

Proexport (2010). About proexport. [online]: http://www.proexport.com.co/VBeContent/newsdetail.asp?id=4598&idcompany=17&ItemMenu=3_250


The port of Brisbane. getty image. (online) Available at: http://www.gettyimages.com/detail/104932505/Bloomberg