Working Abroad - Business Travel 2012?

American Express' annual Global Business Travel Global Forecast says airfares and hotel costs will rise, as will doing business in Asia and Latin America as opposed to North America and Europe.

Despite a series of fragile economies, costs are expected to rise mostly as a result of classic supply and demand: More businesses are likely to send employees on the road while air carriers, in particular, keep availability restricted.
Report highlights:

Europe, Middle East and Africa airfare and hotels
Increases are expected to be modest on airfares, but long-haul business will see the biggest leap as "European business people go abroad to Asia and Latin America to capitalize on growth opportunities in emerging markets." Hotel rates are likely to see moderate increases also, but countries in economic turmoil, such as Spain and Greece, could be better values.

Latin American airfare and hotels
Strong Latin American economies and increasing consolidation among airlines likely will boost costs — between 3 and 6 percent for economy seats and 5 to 9 percent in business class.
Hotels will be impacted similarly, with "moderate" increases among mid- and upper-tier locations. Business hubs will be particularly affected.


Asia-Pacific
This region is the jewel of business travel at the moment and a "relative bright spot in an otherwise uncertain economic picture." Asia is "expected to lead in business travel demand." Airfare is expected to increase significantly, with leaps as high as 10 percent on long-haul business routes.
More travelers also will mean higher hotel rates. But some cities, such as Shanghai, have enough capacity to offer cheaper rates than elsewhere in the region.

November 01, 2011 - Tribune Newspapers excerpt

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Want a British passport - pass the history test!

Applicants for British passports will have to meet new requirements that were outlined by Prime Minister David Cameron on October 10. Under the proposal, migrants will have to pass a quiz about British history and culture before they will be granted a passport. The quiz will cover a number of major events and important people in British history. Foreign nationals who want to permanently move to the UK are already required to take a test on life in the UK, but have not been asked to take a quiz on history because of concerns that doing so would be unfair. The addition of the history quiz is part of an effort that Cameron said will make the UK's immigration system fairer. In addition to the history test, Cameron has also called for forcing migrants to pay a bond as high as thousands of pounds before they will be allowed to enter the country. Forcing migrants to pay such bonds could help prevent them from disappearing into the underground economy. Cameron also called for requiring companies to report how many foreign employees they have, though that proposal has since been dropped.

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Working Abroad - Cultural Differences impact Mergers and Acquisitions

According to a KPMG study, "83% of all mergers and acquisitions (M&As) failed to produce any benefit for the shareholders and over half actually destroyed value". It was cited that the overwhelming cause for failure "was the people and the cultural differences".

Difficulties encountered in M&As are amplified in cross-cultural situations, when the companies involved are from two or more different countries.

Merger success is possible; however, being part of the 17% that succeeds, rather than the 83% that does not deliver, requires more than insight. Merger success is based on acceleration, concentration and creating a critical mass for operational change (adaptation).
Up to the point in the transaction where the papers are signed, the merger and acquisition business is predominantly financial - valuing the assets, determining the price and due diligence. Before the ink is dry, however, this financially-driven deal becomes a human transaction filled with emotion, trauma, and survival behaviour - the non-linear, often irrational world of human beings in the midst of change.
In the case of international mergers and acquisitions, the complexity of this process is often compounded by the difference in national cultures. People living and working in different countries react to the same situations or events in very different manners.
Therefore, a company involved in an international merger or acquisition needs to consider these differences right from the design stage if it is to succeed.

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Virtual teams the new working abroad?

The ‘rules of engagement’ for a virtual team:
A virtual team has the potential to be a powerful resource within any organisation, but its complex dynamics mean that it must be structured with care to avoid misunderstandings and conflicts that can arise from its virtual nature and the cultural differences of its members. The following list sets out some of the key areas to address when setting up a virtual team.

• Leadership
• Purpose
• Roles
• Culture
• Communication
• Conversation
• Feedback
• Pace
• New members
• Weaving
• Participation
• Team Building

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Working Abroad - 10 mistakes made by expats

Ten Worst Mistakes Made by Expats:

Gavin Pluck, European director at Guardian Wealth Management, warns of the 10 worst mistakes people from the United Kingdom make when moving abroad:

• People often underestimate the cost of living in a new country by assuming the cost of essentials in a new country will be comparable to those in their country, but countries like Switzerland can be far more expensive than the UK.
• Likewise, correctly estimating moving costs means taking into account foreign exchange rates, as well as fixed and one-time costs such as legal fees, expenses for purchasing and renting property, and local administrative fees and taxes.
• Being in new, exciting surroundings may lead to overspending to take in the new cultural experience, without keeping enough funds on hand for emergencies.
• To meet financial obligations retained in the UK, expats need to factor in exchange rate fluctuations, and should try to obtain a six- to 12-month fixed exchange rate when possible.
• It is equally important to understand the local tax system and how taxes will affect the family budget. An experienced international financial advisor can help develop a sound financial plan.

Other important legal and financial considerations include:

• Updating wills that will be recognized in the new country of domicile.
• Setting up an overseas bank account to avoid excessive bank charges for domestic payments.
• Informing the HMRC by completing Form P85 to avoid having to pay taxes in both the UK and the new country of residence.
• Life insurance policies should be checked and updated to be sure they provide coverage outside of the UK.
• National insurance contributions to pensions set up in the UK must either be maintained if planning to return later in life, or an alternative pension plan should be set up.

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Cultural Issues - Mergers and Acquisitions

Companies in Mercer Study "Very Concerned" about Top Talent Departure

Only a small number of companies analyze cultural issues as part of their integration plans for mergers and acquisitions, according to feedback from global human resource leaders attending Mercer’s M&A Ready™ workshops. Only 25 percent of respondents indicated their company had a process for addressing cultural issues to ensure more successful business integrations.

According to Mercer, most companies seem to have a strong awareness of culture and talent issues in M&A situations. Regarding the risk of top talent departing the organization following an M&A transaction, virtually all attendees said they were concerned, with 46 percent saying they were “very concerned.” When queried about the level of prominence of people issues in M&A situations, 64 percent of respondents said that people issues are more prominent today compared to one or more years ago.

“It’s a concern that well considered cultural integration plans and processes are seemingly absent in many organizations planning M&A deals,” said Chuck Moritt, senior partner in Mercer’s M&A consulting business. “While many acquisitive organizations are aware of culture-related risks that surface in transactions, few organizations are doing enough to mitigate those risks ahead of time.”

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Working Abroad - UK Income Tax

UK Creates Tighter Rules for Expats' Income Tax

Under a proposed rule, British non-residents who work more than 20 days a year in the United Kingdom will be subject to taxes on their worldwide income, according to a report by Arabian Business. The rule could take effect on April 6, 2012, and signifies the country's efforts to tighten residency rules to boost tax revenue, according to Spencer Lodge, regional director at PIC deVere. HM's Revenues & Customs has issued a consultation paper on the planned rule, which considers individuals who spend more than 182 days in the United Kingdom as residents who are responsible for paying income tax. In addition, expatriates who spend between 10 to 182 days in the country would be tested for non-residency status based on factors like whether family members live in the United Kingdom, housing, and employment, Lodge said. He added that the new rule could affect thousands of expatriates from the Gulf Cooperation Council (GCC) region of the Middle East. The Institute for Public Policy Research Data estimates that 5.6 million UK citizens currently live abroad permanently while 500,000 do so temporarily.

MENAFN.com (07/28/11)

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