International markets offer expansion, sales potential

Global Business Initiative helps businesses get started.

By: George Frey
   Does your firm have a product you’d like to sell a billion of? Want to expand your services to huge numbers of consumers? How about moving some production to a place with a markedly cheaper labor pool?
   You could try Asia, but shouldn’t before you understand some key points about that place. In fact, experts agree, don’t move into any foreign market until you do a thorough analysis of those cultures and understand how they think and do business.
   The Global Business Initiative at The College of New Jersey is an organization that arranges meetings focusing on the international scene so companies can learn about what they should know to get their research started.
   "These business breakfasts are aimed at companies that are interested in expanding their business and taking advantage of the opportunity around the globe," says the NJGBI’s Keld Hansen, an adjunct professor of international business at the College of New Jersey. Panelists at a recent NJGBI meeting focusing on Hong Kong, "The China that speaks English," said if you want a Western-like entry point to one of the largest markets in the world, Hong Kong is the place to set up shop first.
   Speaking at the meeting, Sarah Wu, the director of the Hong Kong Economic Trade Office in New York, said there are only 200,000 lawyers in China, a country with a population of 1.3 billion people. Of those, she thinks only a few thousand are bilingual or are able to practice international law right now.
   "The need for professional services like lawyers, accountants and insurance people, for instance, will be great," Ms. Wu said. "The market will be very attractive."
   While Hong Kong is known as one of the world’s most industrially dynamic and liberal economies, incoming companies often fail to understand the importance of government relationships; don’t understand the nature of the legal framework or don’t have the local service providers in place to do business, Ms. Wu said.
   She said Hong Kong has been set up as a Special Administrative Region of China since 1997 and looks after its own economy and trade matters. "One country with two systems," she said.
   Ms. Wu said the Hong Kong Economic Trade and Development Office along with the Hong Kong Trade Development Council — also in New York — can show companies exactly what the region has to offer them. "We can facilitate different meetings. We can help you look for suppliers." She said the trade development council offices even will help a company do an Internet search for products or suppliers it may need.
   "China will grow very fast," Ms. Wu predicted, but she still thinks the U.S. will remain as the strongest economy in the world in 20 years.
   "This is an exciting time. Hong Kong is the best place to move into China and a good place to move into the rest of the Asian-Pacific market. When we see the world economic situation come around again, we will see an opportunity for even more trade in that region."
   As for companies that want to move directly into China, she suggested calling a Chinese Embassy for information on where and how to get help.
   Other Global Business Initiative meetings include Cuba, Feb. 18; NAFTA, March 18; The European Union, April 22; and Eastern Europe, May 20. For more information contact Keld Hansen at the NJGBI, (609) 771-2033. Some information can be found on the Trenton State Web site, www.tcnj.edu.
   The Hong Kong Economic Trade Office can be reached at (212) 752-3320. The Web site is www.hongkong.org