Category Archives: Global Trade

Global Trade, International News, News

The Questions Every Business Should Ask Before Expanding Internationally

Despite the current economic headwinds, global expansion is having its moment this year. It increased by 45% this year compared to pre-pandemic figures, Signifyd data shows.

International expansion has become a necessity for businesses. Global ecommerce presents ample opportunities for merchants to tap into new markets and increase their revenue. But before attempting international expansion, there are certain questions every business needs to ask to bulletproof their strategy.

In an interview for Signifyd’s commerce report, Signifyd head of global financial services and EMEA marketing Amal Ahmed sat down with Chris Holley, commercetools global director for independent software vendor partnerships to discuss the very important things a business should consider before taking that step. Here are the main takeaways.

Why am I expanding and why now?

The time has never been better for businesses to embark on cross-border expansion. That double-digit global ecommerce growth is more than attractive to ecommerce leaders looking to bring their game to the next level. The earlier you make the move and take advantage of the fresh global ecommerce market, the more you will be able to establish yourself and ward off competition once it comes along.

Apart from the time being right for most businesses, you need to consider individually if this is what will benefit your business the most right now.

“One of the questions that isn’t asked when it comes to global expansion is should you even do it? Sometimes you shouldn’t. Sometimes your product isn’t attractive,” Chris Holley said.

If you are a reseller of other people’s products, for example, it’s likely that you won’t have much traction in expanding such an activity. Other businesses, such as plumbing, will also have a hard time competing with the local plumbers in a new country. In that case, you should ask yourself if this really is for you.

“Everybody likes to think internationally, but sometimes it’s not the best idea,” continued Holley.

Where is the place to expand?

Pretty much any market presents you with an opportunity to expand internationally. But each market has its own characteristics that you need to consider beforehand, and one might be better suited for your product and target audience than another.

Think about where you have a cultural affinity? Above research and analysis is your individual business acumen and intuition which can help guide you in the right direction.

Then comes the strategic part. Identify the countries where you think you will be more successful in and create a list of no more than five. Order it by starting with the most attractive one and stop at three. These are your primary target markets with the best opportunities for cross-border expansion. Chris Holley advises expanding into one market at a time. It’s also important that the country you invest into has good macro-dynamics, including a job growth, educational growth, and a net positive growth.

How am I going to get there?

Once you’ve established your target market, it’s time to consider your plan of action.

Chris Holley suggests tasting the new market by expanding through a marketplace at first rather than selling directly into a new country.

While you’re going to have a higher commission cost, the marketplace will do the majority of the work and help you attract a new customer base, thus allowing you to focus on pulling data and analysing it to form your strategy. Then, try and sell five products on a marketplace in three countries for a year. If you’re willing to risk a certain amount of money, this is a great way to get a sense of who your customers are in the given market and what their purchasing behaviours are, so that you’re well-equipped to succeed when you start selling on your own.

Expanding internationally is not a rapid process with momentary rewards. It will take time until you see results, so use that time to test the new market and see what’s working best for you.

Asking yourself these questions will help your business step into the new adventure prepared and with confidence! Cross-border expansion is a game of trial and error, and the more you practise it, the better you will get at it.

Global Trade, International News, News

Global Trade Activity Shows Green Shoots of Recovery, Led by Strong Growth in China and the US

LONDON – 17th April, 2024 – New data from Tradeshift’s Q1 Index of Global Trade Health paints an encouraging picture for global trade, with robust growth observed in China and the US, alongside indications of a rebound in global demand for manufactured goods.

Total transaction volumes across the Tradeshift network, used by over a million businesses worldwide, improved by one point compared to the previous quarter, landing three points below the anticipated range in Q1. While this marks the ninth consecutive quarter of growth below expectations, it also signifies the third consecutive quarter of upward momentum after a prolonged period of sluggish activity.

“We’re seeing successive quarters of strong order volume growth for the first time in two years,” said James Stirk, CEO, Tradeshift. “Demand levels seem to be recovering, but there’s still a fair way to go before we start to see a normalisation. Recovery is likely to remain fragile over the short-to-medium term, with factors such as the Red Sea crisis and wider geopolitical uncertainty clouding the picture.”

Key regional and sector-based indicators from the report include:

  • China turnaround: Trade activity in China rose at the most significant rate in Q1. Transaction volumes grew at two points above the expected level, the highest in more than two and a half years.
  • US moves up a gear: The US also continued gaining momentum in Q1, with total trade activity tracking one point above the baseline. Order volumes surged to an impressive seven points above the expected level, following growth of a similar level in the previous quarter.
  • Manufacturing recovery: Tradeshift sees growth coming in part from an uptick in demand across the manufacturing sector where trade activity tipped back into the expected range for the first time in a year.
  • Eurozone edges higher: Activity levels across the Eurozone improved to three points below the baseline in Q1 having sunk as low as nine points below that level just six months earlier. New orders grew at six points above anticipated levels.
  • UK orders disappoint: UK trade activity improved to four points below the expected level in Q1, but order volumes were sluggish, tracking five points below expectations.

While a sustained recovery in orders is suggestive of more favourable trading conditions, liquidity challenges persist for suppliers, posing a potential challenge as supply chains look to ramp up activity. Although invoice payment times have decreased since their peak in Q3 2022, suppliers still face a 6% longer wait compared to the pre-pandemic era.

“Cash flow is akin to fuel in supply chains and a lot of suppliers will be running on empty after two hard years,” added Stirk. “The longer suppliers have to wait to turn invoices into cash, the greater the likelihood that an influx of new orders starts to outpace the availability of working capital to fulfil demand.”

A new joint venture between Tradeshift and HSBC, due to launch later this year, will focus on helping businesses accelerate access to working capital through a range of embedded financial services, including data-driven invoice financing.

 

EU, Europe, Global Trade

The Benefits of Doing Business in Switzerland

There are few places in the world where businesses can thrive as they can in Switzerland. An economic powerhouse, Switzerland’s well-regulated market, political stability, and innovative spirit make it an ideal choice for business expansion.

Switzerland’s robust financial sector, its tradition of precision and quality in manufacturing, attractive tax system, and a highly skilled, multilingual workforce are also factors that make it an increasingly attractive proposition for foreign entrepreneurs and established enterprises alike.

While starting a business anywhere comes with its challenges, the benefits of setting up shop in Switzerland are too significant to ignore. Below, we’ll break down the many advantages of doing business in this booming market.

Note: If you’re planning to travel to the country from the UK to conduct business from 2024 onwards, you’ll first need to apply for an ETIAS Switzerland.

Stable Economy & Strong Currency

Switzerland is known for its incredibly stable economy. In a world where economic instability can be a significant risk factor for businesses, this is a substantial advantage. The Swiss Franc, one of the strongest and most stable currencies worldwide, can provide security and confidence for businesses trading internationally.

Innovation and Technology

Switzerland is not just a land of financial services, cheese, timepieces, and chocolate – it’s also a hub of innovation and technology. Known for its high-quality education and research institutions, Switzerland consistently ranks among the top in global innovation indexes. This robust innovation landscape is particularly ripe for businesses in the tech sector to explore.

Excellent Infrastructure

Switzerland’s advanced transport, telecommunications, and energy networks provide a robust foundation for businesses. Additionally, its central location in Europe grants easy access to other key markets in the region.

Attractive Tax Regime

Switzerland has one of the most favourable tax environments in the world. Its federal structure allows cantons (Swiss states) to set their corporate tax rates, leading to healthy competition and attractive rates for businesses. In addition, several tax treaties help avoid double taxation, making it an ideal place for international business operations.

Business-friendly Regulations

Switzerland’s business laws are not just robust, they’re also very business-friendly. The country’s legal framework supports entrepreneurs by making it easy to set up and run a business. There’s minimal red tape, which means you can focus on growing your business rather than navigating bureaucratic hurdles.

Political Stability

Switzerland’s democratic system, underpinned by a decentralised, federal structure, provides certainty and predictability. Businesses in Switzerland can operate knowing that sudden political upheavals are unlikely to disrupt their operations, providing a conducive environment for long-term strategic planning and investment.

Access to Highly Skilled Workforce

Switzerland’s education system is world-class, resulting in a highly skilled and multilingual workforce. The country’s strong emphasis on vocational training and continuous professional development makes the labour market very dynamic. As a result, businesses operating in Switzerland have access to a talent pool that’s hard to match.

Intellectual Property Protection

Switzerland’s stringent intellectual property laws provide strong protections for businesses, particularly those in innovation-driven sectors such as pharmaceuticals, technology, and precision engineering. These robust laws ensure that businesses can develop and commercialise their innovations without fear of infringement.

High Quality of Life

Switzerland is consistently ranked among the countries with the highest quality of life worldwide. The Swiss work-life balance, healthcare system, education, public safety, and the natural beauty of the country are all major draws. This ultimately helps businesses attract and retain top talent from around the globe.

Downsides of Doing Business in Switzerland

It’s also important to be aware of some potential drawbacks of doing business in Switzerland. One of these is the high cost of living and operation. Everything from office rentals to salary is significantly higher than in many other countries.

Another challenge is the complex regulatory landscape. Although generally business-friendly, some sectors are highly regulated and may require navigating through a complex system of rules and regulations.

Furthermore, while Switzerland is renowned for its multilingual workforce, businesses may face language barriers in certain regions. The country has four national languages: German, French, Italian, and Romansh. Depending on the region, the dominant language changes, which could pose communication challenges.

Finally, while Switzerland is not an EU member, it maintains numerous agreements with the EU. This can sometimes result in legislative changes that businesses need to adapt to quickly.

While there are undoubtedly challenges, the benefits can far outweigh these for many businesses. As with any country, the key is to do thorough research and planning, understand the market and the regulatory environment, and make informed decisions. The potential rewards of operating in a stable, innovative, and business-friendly environment like Switzerland can be significant.

 

Global Trade, International News, News

Expand Your Business Apertures by Investing in Second Citizenship

Written by Laura Stace

Scaling your business is an exciting but tricky process.  But, if you’re doing the fundamentals correctly and the main leap is having the commitment to go through with it! Global expansion often pertains to taking a different path, dealing with marketing, sales, and understanding taxes in the foreign country where you’ll be operating.

No matter where you work and live, there will always be broader and bigger opportunities to expand your business horizons and invest in a foreign country. Many countries are more than happy to host foreign investors into their economies in exchange for citizenship.

But can you expand your business by investing in a second citizenship? Yes, you can! And here we’ll explain how a second passport can benefit your business globally.

How Can You Obtain Dual Citizenship?

Depending on your country of origin and the country where you want to invest for dual citizenship, the process of obtaining it differs between countries. However, it can be surprisingly easy since the governments have all kinds of projects you can invest in with the main aim to fund national development.

The investment options for obtaining a second passport include investment in real estate approved by the government, one-time donation to national funds, and investment in shares in luxury resorts or hotels.

For example, the Grenada citizenship investment program requires investors to make a contribution to the economy with a single donation of $150,000 to the National Transformation Fund or at least $200,000 investment in real estate. This passport allows you to apply for the US E-2 Treaty visa and travel and work in the USA.

 

How Dual Citizenship Can Expand Your Business Apertures?

Second citizenship is a popular choice among high-net-worth investors seeking business opportunities internationally. There are many benefits of dual citizenship, including working and living in another country, access to better healthcare and education, visa-free traveling, and an opportunity to live in a different country.

It also provides stability and security for citizens, moreover, if those citizens come from a country that’s politically or economically unstable. Here’s how dual citizenship can help you expand your business affairs abroad.

1. Freedom of Mobility

A second passport is a dream come true for people who travel often. It allows them to travel visa-free to multiple countries which boost financial and business opportunities since investors can save on visa fees and additional costs.

Having the ability to travel without a visa or with a visa on arrival is a huge advantage if you want to expand internationally. However, the number of countries you can travel to visa-free depends on the country’s credit rating – if the country has an excellent credit rating, the chances are your passport would be very powerful.

 

2. Unlimited Business Opportunities

With dual citizenship, you have endless business opportunities. It opens the doors to new entrepreneurial options and gives you access to emerging and established markets. If your business is relying on international trade, then a second passport is more than welcome.

3. Always Have a Plan B

In today’s world, it’s a good idea to have a plan B. And dual citizenship is the ultimate insurance of security and stability – a safety net that allows you to relocate your assets to another country in case of natural disasters, a war, market crash, civil unrest, or other unforeseen circumstances.

4. Access to Quality Education

Through dual citizenship, you can take advantage of quality education that might not be available in your home country. And if you have a family, access to educational institutions with high rankings is significant. You will provide a better future to your descendants so they can run your business affairs abroad.

What Are The Requirements?

Every nation has different terms and conditions regarding the CBI programs. However, there are quite a few ones that are common in all countries.

  • You need to be at least 18 years old at the time of application
  • You need to provide proof of the legal source of the investment fund
  • You must be able to show a clean background check, with no criminal record
  • Undergo health screenings
  • Pledge an oath of allegiance to demonstrate your commitment and principles for the new country that will become your home
  • Fill out the needed paperwork and disclose required documentation

Top Countries That Offer Dual Citizenship And Favorable Benefits For Your Business

Many nations allow foreigners to apply for dual citizenship, however, there are a couple that offer favorable business benefits. We’ll mention a few you can check and decide whether you want to apply for citizenship and expand your business globally.

Among the countries with the best CBI programs are Antigua and Barbuda, St. Kitts and Nevis, St. Lucia, Dominica, Grenada, Malta, Cyprus, Turkey, and Bulgaria.

Get Your Passport

A second passport can certainly help you expand your business to a foreign country and emerge into new markets. 

In this article, we’ve covered essential details about dual citizenship – how you can obtain one, what are the requirements and the countries with the best CBI programs, and how it can help entrepreneurs expand globally. So, get your passport now and enjoy the benefits later!

 

About the author

Laura Stace is a popular blogger who writes about business and travel

Global Trade, News

3 ways to take your business international

The unstoppable rise of globalisation has only hastened over the course of the past two years.

And though major corporations are leading the way in conquering the business world on an international scale, companies of all shapes, sizes and industries are finding ways to capitalise on increasingly worldwide markets.

If you have international ambitions for your brand and want to make the most of overseas opportunities, these are just three potential strategies that will help your business take this next step in its growth.

  1. Get wise – on- and off-line

It goes without saying that globalising your business will require a cohesive digital strategy to target international markets

But getting your business online isn’t enough – your global marketing campaigns need to account for cultural differences and approach international markets sensitively and sensibly. Not to mention, you may have to adapt your offering to secure success in overseas realms.

Do your research before attempting to branch out, and make sure you’re completely prepared for the challenges of the global market before tackling it.

  1. Relocate

It sounds like a drastic measure, but the best way to master a new market is sometimes to throw yourself into the thick of it.

And with international investment opportunities across the globe, you’d be surprised at the avenues a change of scene can open up.

For instance, Golden Visa programmes such as Portugal’s internationally renowned scheme is a chance to establish new business ventures not only within the country, but across the European Union. The programme welcomes international investors, many of whom quality through investing in property via agencies like Property Lisbon.

As well as the professional opportunities this offers, it also gives you the chance to live in another country and explore the world – making it perfect if you’ve ever dreamed of living abroad.

  1. Remote team

In the golden age of remote working, businesses are no longer restricted to locality when it comes to the hiring process.

And in fact, it’s becoming increasingly common for employers to broaden the hiring radius when advertising vacancies due to the commonplace nature of remote working.

So logically it follows that employers are increasingly open to hiring internationally. With no need for staff to commute to the office, there are (theoretically) no limits on where your business

A wider hiring pool is great news for any business, as finding skilled staff is one of the greatest challenges of management. However, it also gives you far more scope when it comes to tackling international markets as a business.  With the insights of staff stationed within the country you’re launching your brand in, you’re at an advantage when it comes to bridging the gap in your globalisation strategy.

As ecommerce breaks down the geographical barriers between businesses and their consumers, these are just three tips to take your business international.

Export, Finance and Banking, Global Trade

British importers and exporters bullish about growth

British importers and exporters are more bullish about growth in the next year than their domestically focused counterparts, according to new research from HSBC UK.

A survey of more than 1,000 British businesses found that 60% of firms that either import or export expect to grow their business in the next 12 months, compared to 46% of domestic firms.

However, the survey found that the number of companies negatively impacted by the end of the Brexit transition period has increased since the start of the year. More than half (52%) of importers and exporters noted a negative impact today, compared to 47% when the survey was first conducted in January.

In addition, the main issue identified by firms now is ‘delays in receiving goods’ which differs from the last survey which saw ‘increased time spent on administrative tasks’ as the biggest issue.

Ian Tandy MBE, Head of Trade for HSBC UK, said: “Ongoing pandemic restrictions in many parts of the world, coupled with the end of the Brexit transition period, has made for a challenging first half of the year and we’ve been working closely with our international customers to support them.

“It’s very encouraging to see that, despite this, exporters and importers remain confident about finding growth in the year ahead. That’s testament to their innovation, entrepreneurial spirit and commitment to deliver for their customers – wherever they are in the world.”

More than two thirds (69%) of exporters said that future free trade agreements would be important for growth and more than half (54%) said they would be more likely to consider exporting to a new market if a trade deal was in place.

In addition, more than a third (34%) of importers and exporters said they would be likely to adapt their operations to take advantage of one of eight new freeports that are due to be created to offer incentives to businesses.

Ian Tandy MBE, added: “It’s positive to see at this early stage that a third of importers and exporters are planning to make changes to make the most of the benefits that freeports will offer in the future.

“As the UK continues to redefine its trading relationships with the world, businesses are sending a clear message that they have an appetite to export and would be more likely to do so with trade deals in place.

“I hope the Government maintains its recent trade policy momentum and focus on agreeing new deals with markets around the world that will have clear benefits for UK businesses.”

Global Trade

Second passport demand surges by 50% amid Covid-19 restrictions

National lockdowns, closed borders and travel restrictions have helped drive up enquiries for second passports, citizenships and overseas residencies by more than 50% year-on-year, reveals one of the world’s largest independent financial advisory firms.

deVere Group, which has more than 100,000 clients globally, reports that this highly unusual year has seen demand for its residency and citizen service “skyrocket.”

The majority of enquiries are from high–net-worth individuals from the U.S., India, South Africa, Russia, the Middle East and East Asia who are seeking alternative options in Europe and the Commonwealth.

Nigel Green, the founder and CEO of deVere Group, says: “Previously, a second passport, citizenship or residency were regarded by many as the ultimate luxury item; a status symbol like yachts, supercars and original artwork.

“While this still remains the case, there’s also been a shift due to the pandemic.

“Now, second citizenship or overseas residency are increasingly becoming not just a ‘nice to have accessory’ but a ‘must have.’

“Whether it be for personal reasons, such as to remain with loved ones overseas or be able to visit them, or for business reasons, a growing number of people are seeking ways to secure their freedom of movement as they have faced travel restrictions which are, typically, based on citizenship.”

He continues: “The pandemic has served as a major catalyst for demand which skyrocketed this year. It has focused minds to secure that second passport or elite residency.

“However, the appeal for is broader than just the global Covid-19 crisis.

“Increasingly people prefer the concept of being a global citizen, rather than being solely tied to the country of their birth.

“They too value the many associated benefits including visa-free travel, world-class education, optimal healthcare, political and economic stability, reduced tax liabilities and wider business and career opportunities.”

Every host country has different criteria for granting citizenship, including time spent in the country, being able to prove the legal source of funds and no criminal records.

For example, Portugal’s residency program requires only two weeks every two years of residency to gain the benefits, including the right to live, work, study and open a business there, as well as travel across the 26 countries of Europe’s Schengen area.

“More and more nations are running citizenship-by-investment programs, in which applicants invest an amount of money in a sponsoring country typically in high-end, new-build real estate developments in exchange for permanent residency, citizenship, or both,” affirms James Minns, deVere’s Head of Residency & Citizenship.

“These programmes, which high-net-worth individuals regard as invaluable insurance, are typically based on property investments that start from 250,000 EUR.”

Nigel Green concludes: “These highly unusual times have fuelled the surge in demand for second passports.

“The pandemic has brought into sharp focus what really matters to people: family, freedom and security.”

Global Trade, News

Businesses Proceeding with International Expansion Plans, Undeterred by COVID-19, Reveals New CFO Survey

New research released by Globalization Partners and CFO Research, indicates that most businesses are undeterred by the impact of COVID-19 and are still moving forward with plans for new or expanded international operations. More than half of the respondents expressed interest in expanding or adding operations in the Asia-Pacific region. The findings also show that 83% of respondents said they are looking into a remote, global workforce model as a solution to the changes brought about by COVID-19.

Despite the pandemic-induced economic crisis, 45% of respondents are either currently expanding globally or only slightly delaying their expansion and will do it within one year. Another 9% maintain intent to expand internationally but remain in a year-long holding pattern.

After North America at 71%, the Asia-Pacific region (excluding China), targeted by 65%, was the most popular region for new or expanded operations. Capturing market share was the top cited reason for expansion into these specific regions. Also, highly cited was the desire to expand sales, diversify investments and acquire top talent.

“This research offers grounds for optimism that the economic crisis caused by COVID-19 has not derailed international expansion plans for most businesses who were already on this path,” explained Nicole Sahin, CEO and Founder of Globalization Partners. “However, the operational challenges, particularly around local legal rules, recruitment and compliance can take months to navigate. Our solution removes these barriers to success and makes it easy to establish new international teams and revenue generation in a matter of days and in some cases in as little as 12 hours.”

The data also found that employee health and safety was a top concern related to global expansion, cited nearly twice as much as the other leading issues, including new business strategies, increasing sales pipeline and revenue, and reducing organisational costs. In addition, 83% of executives expressed concern managing multiple third parties and stakeholders in a foreign environment during a volatile economic climate. And 74% of executives expressed concern with navigating foreign banks and international employee payroll in these volatile times.

Expansion had been or was expected to be a long process for most of the executives. 86% said their global expansion took or would take at least five months. That figure included 42% who put the time required at more than one year. As a result, dedicating resources to global operations was also a top concern for executives planning international expansion.

Sahin concluded: “The survey supports all the key challenges facing companies as they expand globally. But the biggest issue is usually the time and cost involved with establishing legal entities or subsidiaries. Our clients can easily hire talent in a new country while ensuring compliance with international laws and agreements.”

Survey Methodology

The survey, conducted by CFO Research of Argyle Advisory and Research Services, polled 166 senior finance executives at companies with international expansion plans.

 

Global Mobility, Global Trade, HR News

Overseas staff look to their employer to help them through Covid-19

For employees working abroad, the Covid-19 pandemic can be an isolating and fearful time. Now, more than ever before, they will be looking to their employer to provide support, whether physically or emotionally. Whilst employers may feel as though their hands are tied, particularly with border and flight restrictions in place, there is still a lot they can do to provide valuable health and wellbeing support to overseas workers.

Sarah Dennis, head of international at Towergate Health & Protection said:

“Letting staff know they are not alone in this and their health and wellbeing remains the top priority is a message that all employers need to be sending right now. Overseas workers can be even more vulnerable to the strains of a global pandemic, being separated from all they find familiar, and knowing that their health and wellbeing is supported can help alleviate some of the pressure.”

Physical support

Employees may well be concerned about their own physical health, as well as that of any dependants, during a time when medical establishments are stretched due to Coronavirus. Whilst medical facilities and treatments might not be as readily available as before, now is the time for companies to talk to benefits providers and advisers to see what options are available within existing schemes or what can be included. Where physical support for new or ongoing medical conditions can’t be administered in traditional ways, advisers can highlight alternative options. Solutions such as virtual GP services and online physiotherapy sessions to treat musculoskeletal injuries, for example, are just some of the innovative ways care can be provided when face-to-face options are limited.

When medical treatment is needed – for instance in the case of an emergency – international private medical insurance schemes (IPMI) in particular, can really come into their own. While repatriating people to another country may be difficult in the current climate, healthcare providers have good networks and can advise on the best course of action, including availability and appropriateness of potential alternative medical facilities depending on the specific need.

Continuity in chaos

Providing continuity and consistency of benefits is particularly important during a pandemic. Some employees, and possibly their families, may be undergoing treatment via their IPMI, but due to confidentiality obligations owed by the insurer to the claimant, employers will not know which employees or family members are receiving treatment or the reasons why. So, this is a time to ensure such benefits are continued, and not scaled back, or employers risk leaving employees to fend for themselves to try and continue treatment – which can be particularly difficult overseas.

Importance of supporting emotional wellbeing

When the world has turned upside down for many people, it’s crucial employers provide emotional support for staff. Global employee assistance programmes can be extremely valuable as they can provide a helpline for employees to talk to someone during an uncertain time. Providing emotional support can make a significant difference to how they cope in a volatile situation.

Simple cuts, complex ramifications

Some businesses may consider suspending health insurance policies as a cost-cutting exercise, with the view to reinstating them later, but they may find this is much more difficult than they realise. Premiums reinstated later may be at an increased rate – as possible changes in employee health since original agreements were made will need to be reviewed and taken into consideration. And health issues that occurred during existing contracts, that have been supported through IPMI cover for example, may be excluded in new agreements.

It’s also important for businesses to remember that having cover in place is a prerequisite for work visas in many countries. So, great consideration must be taken before making any changes – as it may have more complex and costly ramifications that employers are aware of.

Reputation protection

For staff working overseas, actions taken now will leave a lasting impression, so it’s important that businesses act responsibly, or risk irrevocably damaging their reputation. Governments have warned that there isn’t a quick fix solution to Coronavirus yet, and for people to prepare themselves to play the long game. The same can be said of businesses; quick solutions – such as scaling back wellbeing solutions – won’t reap the benefits in the long run, of an engaged and fully supported workforce when the world re-emerges from this pandemic.

Sarah Dennis concludes:

“The Coronavirus pandemic has brought the health and wellbeing of overseas staff to the forefront of many companies’ minds. Now is the time to demonstrate that this is a top priority, and that message needs to be communicated loud and clear to a workforce.”

Global Trade, Healthcare News, Research

The Corona virus and its devastating impact on the Chinese economy

Due to a severe drop in consumer spending because of the Corona virus, China’s short-term growth will plummet, according to new analysis from Nyenrode Business University.

According to Professor of International Economics Haico Ebbers

“Consumer growth made up 60% of GDP growth in China in 2019 alone. However, there has been a reduction in spending due to the virus, which may continue for some time because the consumer sentiment is under attack. Consumer sentiment is an important driver behind future spending. If you feel confident about the future, spending on houses or cars may increase, while a negative sentiment holds down expenditures. Therefore, we may expect a drop in consumer spending over 2020. The virus is also disrupting parts of the global supply chain. Ikea closed all its 30-plus shops and we see the same with several outlets including Starbucks and McDonald’s.

“The financial markets have also strongly reacted to the virus outbreak in China, Hong Kong, Asian countries and in the US and the Netherlands. The Dutch index fell almost 4% as a reaction on the Corona virus. This may affect private investments in the short term.

“A final impact on the economy runs through international trade and foreign tourists. If the Corona virus affects economic growth in other countries, buying Chinese imports are repressed and China’s drop in exports will hurt the domestic economy. If foreign tourists cancel their visits to China, the local economies will also feel it.”

The impact of the virus on economic growth in the next quarters is driven by what is happening with private consumption, investments, government spending and exports. All determinants are under attack.

According to Professor Ebbers a factor that may counteract this, is government spending. The Chinese government showed in previous cases, that they are very flexible in executing necessary stimulus packages to counteract the economic damage. It is to be expected that this will happen again. However, at this point an outcome is hard to predict.