Benefits Of Going Native In An International Business

People invest in different countries for all sorts of reasons: tax exemptions, higher profit margins, lower costs, repatriation of profits etc. However, one of the complaints against foreign investment in most countries is that after the initial input of capital, not a cent of the business is received by the country that allows that business to exist. In other words, the company is foreign in all but its location. There are several solid arguments for why an international business should look more into engaging with the locals and putting down roots there than using expats.

Harness the Local Labour and Knowledge

Most international businesses go abroad for company formation Abu Dhabi for the precise reason that labour is cheaper there than in their native country. In such a scenario, why spend so much bringing foreign expats to work for you when local labour and knowledge is available for a much lower amount? Invest in a solid training course, and sign a bond that obliges them to work for you for at least a year before they can leave. You will find that any locals who were given the opportunity to better themselves and grow in their profession will repay you with loyalty to the company.

Easing Your Way into the Local Business Community

There may be resentment from local businessmen and other communities against a foreign business that may be more profitable than their own. Such tensions can manifest in delayed deals and agreements, problems in production etc. People with influence among local shot-callers may try to throw obstacles your way. These issues can be avoided if you have a local staff that will ease your way into the local business community. They will know which connections you should make, who to network with, how to smooth any ruffled feathers. It will also be apparent to everyone that you did not merely arrive to exploit the favourable economic conditions but is actually a benefit to locals.

Reach Out to the Local Community

This is slightly different than mingling with the business community, and is an important part of setting up a business in the 21st century. Large businesses succeed best today when they have roots within the local community and are sustainable. Many companies therefore initiate outreach and community development programmes to help the communities around the business to develop and grow along with them, for example, an import/export business can have internship programmes for teens of local schools that will provide them with valuable work experience and maybe even a mentor for their future.