Support legal programs for SME internationalization
Reflecting the widespread recognition of the importance of internationally-active SMEs in sub-national/regional, national, and global economies, there has been a rather well established tradition by public agencies and the organized private sector institutions of supporting the internationalization activities of SMEs, mainly through appropriate interventions to redress market failures (European Commission 2010). This section examines the extent to which current support programs across OECD countries and other economies involved in the OECD enlargement and enhanced engagement processes appear to address the five top internationalization barriers highlighted earlier in this report. It also assesses the degree of attention being paid to the identified top motivations for SME internationalization by currently available support programs.
The specific OECD economies covered include Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, Germany, Greece, Hungary, Italy, Japan, Korea, Mexico, Netherlands, Norway, Poland, Sweden, Switzerland, Turkey, UK, and USA. Brazil, Chile, China, Estonia, India, Indonesia, Israel, Russia, Singapore, Slovenia, and South Africa are the non-OECD member countries reviewed. Sub-national and sectorial insights on these support programs barriers are also explored on reports and books.
Friday, April 15, 2011
Monday, March 14, 2011
Social Ties Driving Internationalization for SMEs from Azores Islands, Portugal
Social Ties Driving Internationalization for SMEs from Azores Islands, Portugal
A recent study of a small fish exporter from the Azores Islands, an autonomous Portuguese archipelago in the North Atlantic, some 900 miles from the European mainland, offers useful insights on the key drivers of internationalization for companies based on small islands. It illustrates the critical role of social ties in guiding and supporting island-based SMEs towards successful internationalization. Often challenged by „isolation‟ and distance from the core economies, and by dis-economies of scale and high transportation cost, these SMEs from small islands tend to exhibit relatively low international involvement. The resultant economic weakness associated with such islands often fuels emigration. In the case of the small fish exporter from the Azores Islands investigated by Camara and Simeos (2008), this meant access to major emigrant communities in Canada (British Columbia and Quebec) and the United States (California, Hawaii, Massachusetts, and Rhode Island) among others. There is evidence, however, that some island-based SMEs leverage the network of family and social ties existing between those remaining on the islands and those that emigrated to compete in international markets.
Source: Camara and Simeos (2008)
A recent study of a small fish exporter from the Azores Islands, an autonomous Portuguese archipelago in the North Atlantic, some 900 miles from the European mainland, offers useful insights on the key drivers of internationalization for companies based on small islands. It illustrates the critical role of social ties in guiding and supporting island-based SMEs towards successful internationalization. Often challenged by „isolation‟ and distance from the core economies, and by dis-economies of scale and high transportation cost, these SMEs from small islands tend to exhibit relatively low international involvement. The resultant economic weakness associated with such islands often fuels emigration. In the case of the small fish exporter from the Azores Islands investigated by Camara and Simeos (2008), this meant access to major emigrant communities in Canada (British Columbia and Quebec) and the United States (California, Hawaii, Massachusetts, and Rhode Island) among others. There is evidence, however, that some island-based SMEs leverage the network of family and social ties existing between those remaining on the islands and those that emigrated to compete in international markets.
Source: Camara and Simeos (2008)
Growth Motives.
Growth Motives.
Growth opportunities associated with international markets were identified as a key driver of firm internationalization in several recent studies. Orser et al. (2008), for example, reports say that after allowing for the impacts of firm size and sector, Canadian legal firms whose owners had expressed growth intentions were more than twice as likely to export, than those whose owners did not indicate growth ambitions. Firms‟ overseas venturing decision also seems to be motivated by a need for business growth, profits, an increased market size, a stronger market position, and to reduce dependence on a single or smaller number of markets. The possibility of growth in other markets and increased profit opportunities from international expansion were highlighted as key stimuli for exporting among the Australian, British, Spanish, Swedish, and US firms investigated in recent studies.
Growth opportunities associated with international markets were identified as a key driver of firm internationalization in several recent studies. Orser et al. (2008), for example, reports say that after allowing for the impacts of firm size and sector, Canadian legal firms whose owners had expressed growth intentions were more than twice as likely to export, than those whose owners did not indicate growth ambitions. Firms‟ overseas venturing decision also seems to be motivated by a need for business growth, profits, an increased market size, a stronger market position, and to reduce dependence on a single or smaller number of markets. The possibility of growth in other markets and increased profit opportunities from international expansion were highlighted as key stimuli for exporting among the Australian, British, Spanish, Swedish, and US firms investigated in recent studies.
Thursday, March 3, 2011
Thai Baht Account
Thai Baht Account
Agreements and contracts on Agreements and Contracts
As a matter of fact, non-residents may also open and maintain a Thai Baht account with the authorized agents in Thailand. In addition to a passport, the authorized agents may also require a work permit (if any). What is more, the depositor will be requested to submit certain necessary documentary evidence, such as in the case of a deposit of Thai Baht derived from sale of foreign currency which originated from abroad--the evidence of such sale of foreign currency, or if derived from salary received while working in Thailand--the certificate of income from the employer. Similarly, the minimum amounts required for opening of different types of Thai Baht accounts may also be specified by the authorized agent with which the accounts are to be opened and maintained.
Agreements and contracts on Agreements and Contracts
As a matter of fact, non-residents may also open and maintain a Thai Baht account with the authorized agents in Thailand. In addition to a passport, the authorized agents may also require a work permit (if any). What is more, the depositor will be requested to submit certain necessary documentary evidence, such as in the case of a deposit of Thai Baht derived from sale of foreign currency which originated from abroad--the evidence of such sale of foreign currency, or if derived from salary received while working in Thailand--the certificate of income from the employer. Similarly, the minimum amounts required for opening of different types of Thai Baht accounts may also be specified by the authorized agent with which the accounts are to be opened and maintained.
Wednesday, February 9, 2011
European Union Direct Taxes
Permanent Establishment is a vital concept in international taxation. While for direct taxes, it is mainly defined by the OECD Model Convention, the European VAT Directive and its implementing Regulation provide an EU-wide approach for VAT.
Difficulties arise as terminology and definitions in indirect and direct tax diverge. Moreover, countries have implemented and interpreted the EU and OECD rules in a different way, impacting on issues like cross-border reorganisations, transfer pricing, taxation of dividends and interest and royalties, tax residence, temporary and permanent transfer of assets, place of supply and VAT liability.
In both direct and indirect tax, the concept of Permanent Establishment has undergone very recent changes: The 2010 changes to the OECD Model Convention and Commentary, and in particular the new Art. 7, will be adopted in national law, as speakers from the Netherlands and Germany will report. The effect of the new definition on treaties with other countries will also be considered.
Some of this topic is addressed in the new book "European Union Direct Taxes", by the International Tax Professor Salvador Trinxet Llorca.
In indirect tax, the current more important issue is the practical consequences of the adoption of the Regulation implementing the EU VAT Directive in January 2011.
Difficulties arise as terminology and definitions in indirect and direct tax diverge. Moreover, countries have implemented and interpreted the EU and OECD rules in a different way, impacting on issues like cross-border reorganisations, transfer pricing, taxation of dividends and interest and royalties, tax residence, temporary and permanent transfer of assets, place of supply and VAT liability.
In both direct and indirect tax, the concept of Permanent Establishment has undergone very recent changes: The 2010 changes to the OECD Model Convention and Commentary, and in particular the new Art. 7, will be adopted in national law, as speakers from the Netherlands and Germany will report. The effect of the new definition on treaties with other countries will also be considered.
Some of this topic is addressed in the new book "European Union Direct Taxes", by the International Tax Professor Salvador Trinxet Llorca.
In indirect tax, the current more important issue is the practical consequences of the adoption of the Regulation implementing the EU VAT Directive in January 2011.
Monday, December 20, 2010
Internationalization of the SME
Other value adding features include the additional focus on motivations for SME internationalization ; the coverage of recently available documentation from economies involved in the OECD enlargement (Chile, Estonia, Israel, Russia, and Slovenia) and enhanced engagement process (Brazil, China, India, Indonesia, and South Africa); and the sub-national and sectoral insights offered on SME internationalization barriers, motivations and support programs.
This realisation was at the heart of the 2007 OECD-APEC study on Removing Barriers to SME Access to International Markets, which provided general findings on the major barriers to SME internationalization as perceived by SMEs and policymakers in OECD and APEC member economies. The need to obtain a greater depth of understanding and an updated view of the issues raised by the OECD-APEC study provided a raison d'être for this follow-up project.
Internationalization and international entrepreneurship among small and medium-sized enterprises (SMEs) has remained a topic of considerable contemporary relevance, principally owing to the observed growth effects of cross-border venturing, and the demonstrated capacity of SMEs to drive economic development at national, regional, and global levels (European Commission, 2007).
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