Kazakhstan: Diamond in the Rough for Investors?

The president of Kazakhstan, Nursultan Nazarba...

Image via Wikipedia

ince the fall of the Soviet Union, countries that gained their independence have struggled with an outdated and inferior infrastructure left by the broken Communist empire. Some have been more successful than others in revitalizing their countries, and one of the greatest success stories comes perhaps from Kazakhstan. President Nazarbayev was recently elected for a third seven-year term, partly for his commitment to democracy and freedom.

Rich with natural resources, Kazakhstan is mostly land-locked, making export difficult. However, the country has come a long way in terms of human rights and labor laws in the past few years. The country is culturally diverse and maintains good relations with her neighbors. Transactions in Kazakhstan are even more transparent than in the U.S., according to Doing Business.

Kazakhstan is in the minority when it comes to former Soviet states achieving freedom and prosperity.  In fact, nine of the 12 non-Baltic former Soviet states are ruled by authoritarian dictatorships.  Secretary of State Hilary Clinton recently issued warnings to such dictators saying, “the old ways of governing are no longer acceptable; it is time for leaders to lead with accountability, treat their people with dignity, respect their rights, and deliver economic opportunity.”

As investors diversify their holdings globally, the Kazakhstan Democracy in Central Asia becomes an attractive investment opportunity.  The country holds the world’s sixth largest reserve of natural resources, is politically stable and has extraordinary educational standards.  The literacy rate for people over the age of 15 is almost 99 percent. Recent improvements in infrastructure has sweetened the pot for investors even more.

If you are diversifying your portfolio globally, it may pay to take a look at investing in Kazakhstan. This gem in Central Asia has the potential of shining in the very near future.

Filed Under: Overseas Operations

Paid Labor Overseas

Have you ever noticed that no matter what product you buy, it has a label stating where it was made? Many products nowadays are made in China, mostly because their manufacturing is so flexible so they can create pretty much any product you want to sell for a reasonable price. But you’ll notice that many clothes are produced all around the world from Brazil to the Dominican Republic to the Philippines.

You have to wonder what kind of conditions these workers work in. There are even places that employ children. Basically, it’s wrong if any of these places employ young workers who are too young to do the work and who work for too many hours a day and it’s wrong if the workers don’t have good conditions to work; for example, if it’s too hot (which is where the term “sweat shops” comes from) or unsafe.

Many people in the U.S. complain also about the pay that these workers receive. It’s true that the wages in these countries are much less than in the United States. What many people fail to consider is whether the pay is a good wage within that country. Many of these workers are being paid more than what they would get at other jobs and they are very grateful for their jobs. As long as the work conditions are good and the pay is above average, it’s a good situation for these workers. Many in the U.S. just don’t realize how poor the people are in these countries.

Filed Under: Outsourcing, Overseas Operations Tagged With: , ,

Hot Topics of Debate Regarding Outsourcing

Many companies recently have started to turn to outsourcing as a way to cut back on costs of operating their business. Outsourcing is a great way to get the work that you need done, finished in a timely fashion at a fraction of the cost. However, there is much debate about the benefits and effects that outsourcing could have on the United States economy.

The first topic of debate when it comes to outsourcing for United States companies is the effect that it has on the jobs in the United States. Many people believe that when a company starts to outsource their work they are dramatically cutting into a large amount of jobs that could essentially be provided to the United States. Businesses on the other hand believe that outsourcing could actually develop jobs in the United States because it opens up a whole new field of study for their company and allows them to create new jobs that can be offered to employees.

The second area of debate when it comes to outsourcing for companies is the amount of money that many companies spend on outsourcing. People believe that the quality of the work diminishes because you get what you pay for when it comes to the work that is done. However, many businesses debate this by saying it all rests on the company to ensure that the quality of work that is being done is up to standards and that customers are getting what they need in terms of products and services.

Filed Under: Business, Overseas Operations Tagged With: , ,

Importance of Following Environmental Procedures for Oversea Companies

Not every country is as environmentally forward as the United States. In the United States there are laws and regulations on how much energy a company can use, where the company’s waste goes and even what is done to old electronic parts when they are no longer of use to the company. However, in other companies there aren’t regulations for these types of environmental concerns.

Many companies and businesses are tempted to engage in local customs and procedures when it comes to how they dump their waste and treat the environment. However, that could have adverse effects both in that country and in the United States.

United States companies are expected to maintain a level of professionalism when it comes to how they treat the environment and what practices they use. This means that if a company starts adapting a local custom for how to get rid of waste it could appear negatively on their company even though they are doing the same as other companies in the area.

A great example of this is when companies overseas that are run by a United States company do not have the environmental standards that the US companies do. Many environmentalists in the United States will actually boycott the company and refuse to use the products and services because they are not across the board on their environmental practices.

Another effect that is common is the belief of the locals that the United States is coming in and taking over. Locals are okay with their local companies not following environmental practices but since it is a foreign company they are expected to follow their own practices and not infringe on the local practices. This could lead to locals not patronize that company.

Filed Under: Business, Overseas Operations Tagged With: , ,

Overseas Business Information: Consider Adding Arbitration to Your Contracts

In an ideal world any contract that was drawn up was honored by all parties. However, that is not the case in the world that we live in. While a company or business who has an overseas operation could go the litigation route, the process could be lengthy, expensive and draining for all parties involves. That is why many overseas business experts recommend that a company put into their contract the ability to use arbitration as a way to settle any disputes.

Arbitration is a course of action that parties in a contract can use when one party is unhappy with the way that the other business is operating. Through arbitration the companies are able to meet through conferences and phones calls with a third party to settle any disputes that they may have.

Adding the arbitration clause to contracts might not be the first thing on a business’ mind but it can really help with costs. A court process that is required through litigation can be costly. The company will have to pay for an attorney and having to foot the bill for any trip to the country that the court process is being held in.

Arbitration will also help companies achieve a quicker resolution to any problems they may have with business partners. Some foreign court systems can cause a simple court process to take years which ties up both sides of the agreement. Arbitration can shorten the process and help both parties reach a resolution to any problems in a timely matter.

If arbitration sounds like a good idea for your overseas contract a local attorney for the company that you are doing business in can add the clause to your contracts. Just make sure the arbitration meets all regulations for the country that you are working in and you should be okay.

Filed Under: Business, Overseas Operations Tagged With: , ,
« Older Posts