Global Business Overview
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Questions and Answers

What is Global Business?

  • A business that aims to be the dominant force in the global market.
  • Exchange goods/services across international borders. Companies that are global means they have many branches/offices in many countries. They have to create/market/distribute products worldwide and manage international operations. Leverage competitive advantages in rapidly/interconnected world economy. (correct)
  • The same as domestic business, just with an extra step of export.
  • A business that operates in multiple countries and is only focused on profits.

What are some examples of Global Businesses?

Starbucks, Google, Ikea

Which of these are characteristics of Global Business? (Select all that apply)

  • Avoid hiring managers from other countries to maintain local control.
  • Only focus on local strategies to avoid dealing with any international issues.
  • Operate in many countries (correct)
  • Social and environmental responsibility. (correct)
  • Only rely on suppliers from the home country to keep costs down.
  • Communicate effectively with people from different languages and backgrounds. (correct)
  • Managing across borders (correct)
  • Face challenges in political and economic settings (correct)
  • Meet the needs of customers in those markets. (correct)
  • Compete with local and international customers (correct)
  • Follow trade rules and regulations from each country (correct)
  • Manage money currency and deal with exchange rates (correct)

What are some benefits of Global Business? (Select all that apply)

<p>Economic Growth (more jobs/productivity) (A), New Markets (increase sales) (B), Consumers' benefit (access products easily) (C), Cultural exchange (understanding/connection between people) (D), Investment opportunities (diversify investment through own assets/businesses) (E), Cost efficiency (save money through cheap labor materials) (F), Competition (improve product to remain competitive) (G), Knowledge sharing (exchange ideas for innovation) (H), Social responsibility (benefit society by being more sustainable/environmentally friendly) (K)</p> Signup and view all the answers

Which of the following are key features of Singapore as a global business hub? (Select all that apply)

<p>Stable political and economic environment (low-corruption/robust economy) (A), Multicultural society (understand different cultures) (B), Skilled workforce (highly educated/talented) (C), Advanced infrastructure and technology (provides necessary resources to thrive in a digital economy) (E), Strategic locations (easy access to major global markets) (F), Strong legal and financial systems (business access capital/financial services) (H), Pro-business policies (grants/tax incentives, making it easy to start a business) (I), Ease of doing business (transparent regulations/straightforward registration) (J)</p> Signup and view all the answers

What are the four (4) main types of real estate properties?

<p>Residential, commercial, industrial, and agricultural (D)</p> Signup and view all the answers

What are some factors that influence the real estate market? (Select all that apply)

<p>Geographical factors (A), Global competition (B), Natural disasters (C), Cultural nuances (D), Regulations (E), Local economies (F), Climate change (G), Political stability (H)</p> Signup and view all the answers

A strong economy typically leads to a decrease in demand for real estate.

<p>False (B)</p> Signup and view all the answers

Low interest rates generally make it more expensive to borrow money, leading to a decrease in demand for real estate.

<p>False (B)</p> Signup and view all the answers

What are some examples of government policies that can influence real estate demand?

<p>Policies that favor specific types of properties over others. (B), Policies that regulate rent control in certain areas. (C), Policies promoting home ownership. (D), Policies restricting foreign investment. (E), Policies that offer tax breaks for real estate developers. (F), Policies that encourage urban development and infrastructure projects. (G)</p> Signup and view all the answers

Urbanization and infrastructure development typically lead to a decrease in demand for real estate in urban areas.

<p>False (B)</p> Signup and view all the answers

Which of the following factors can influence the real estate market from a socio-cultural perspective?

<p>All of the above (E)</p> Signup and view all the answers

Which of the following are considered geopolitical factors that can influence the real estate market? (Select all that apply)

<p>International relations (A), Conflicts and security issues (D), Political stability (G)</p> Signup and view all the answers

Significant events, such as pandemics or natural disasters, have no impact on the real estate market.

<p>False (B)</p> Signup and view all the answers

What are some key characteristics of the United States real estate market?

<p>All of the above (D)</p> Signup and view all the answers

What are some key characteristics of the United Kingdom's real estate market?

<p>All of the above (D)</p> Signup and view all the answers

What are some key characteristics of Australia's real estate market?

<p>All of the above (C)</p> Signup and view all the answers

What are some key characteristics of China's real estate market?

<p>All of the above (D)</p> Signup and view all the answers

What are some key characteristics of the Middle East real estate market?

<p>All of the above (D)</p> Signup and view all the answers

What are some key characteristics of developing real estate markets? (Select all that apply)

<p>Less mature property markets (B), Rapid urbanization (D), Expanding middle class (E), Higher growth potential (G)</p> Signup and view all the answers

What are some of the challenges associated with investing in developing real estate markets? (Select all that apply)

<p>Economic fluctuations (A), Higher risk and volatility (B), Limited infrastructure development (C), Political instability (E), Weaker legal framework (H)</p> Signup and view all the answers

What are some key trends in the Asia-Pacific real estate market? (Select all that apply)

<p>Technology and Innovation (A), Sustainability (B), Urbanization (D), Infrastructure development (E)</p> Signup and view all the answers

Which of the following are considered challenges in the Asia-Pacific real estate market? (Select all that apply)

<p>Economic volatility (C), Pandemic impacts (D), Regulatory hurdles (E)</p> Signup and view all the answers

What are some emerging markets in the Asia-Pacific real estate market? (Select all that apply)

<p>Indonesia (A), Vietnam (B), India (C)</p> Signup and view all the answers

Which of the following are considered mature markets in the Asia-Pacific real estate market? (Select all that apply)

<p>Singapore (B), China (C), Australia (E), Malaysia (F)</p> Signup and view all the answers

What are some motivations for investing in overseas residential properties? (Select all that apply)

<p>Desire to live in a different culture (A), Diversification of investment portfolio (B), Desire to escape political and economic instability (C), Access to lower cost properties with few restrictions (E), Potential for higher returns (F), Improved lifestyle and quality of life (G)</p> Signup and view all the answers

Investing in overseas properties always offers lower costs and fewer restrictions compared to domestic property investment.

<p>False (B)</p> Signup and view all the answers

What are some factors that influence the rental yield of a property?

<p>All of the above (G)</p> Signup and view all the answers

In the context of real estate investment, a favorable currency exchange rate will make it easier for investors from a country with a stronger currency to purchase properties in a country with a weaker currency.

<p>True (A)</p> Signup and view all the answers

What are some of the key steps involved in the pre-development phase of a property development project?

<p>All of the above (D)</p> Signup and view all the answers

What are some of the key considerations for buyers when reviewing property options?

<p>All of the above (D)</p> Signup and view all the answers

What are some of the key risks involved in the construction phase of a new property development project?

<p>All of the above (D)</p> Signup and view all the answers

What are some of the key considerations for buyers during the post-handover phase of a property development project?

<p>All of the above (E)</p> Signup and view all the answers

What are some of the roles and responsibilities of estate agents in the real estate market?

<p>All of the above (E)</p> Signup and view all the answers

What are some of the key differences between estate agents (EAs) and real estate salespersons (RESs)?

<p>All of the above (D)</p> Signup and view all the answers

What are some reasons why it's important for buyers to be cautious of foreign property marketing?

<p>All of the above (D)</p> Signup and view all the answers

What are some key steps involved in the process of buying foreign properties?

<p>All of the above (I)</p> Signup and view all the answers

What are the main types of legal structures for companies in the context of foreign investment?

<p>All of the above (G)</p> Signup and view all the answers

What are some of the benefits of setting up a BOI company in Thailand?

<p>Both A and B (A)</p> Signup and view all the answers

What are some of the challenges associated with setting up a BOI company in Thailand?

<p>All of the above (E)</p> Signup and view all the answers

What are the main types of property ownership structures commonly used in foreign investment?

<p>All of the above (D)</p> Signup and view all the answers

What are the main types of real estate properties that foreign investors typically invest in?

<p>All of the above (E)</p> Signup and view all the answers

Which of the following countries prohibits foreign ownership of land?

<p>All of the above (E)</p> Signup and view all the answers

Which of the following countries allows foreign ownership of apartments and condominiums with certain limitations?

<p>All of the above (D)</p> Signup and view all the answers

Foreign ownership of land in Thailand is generally prohibited.

<p>False (B)</p> Signup and view all the answers

What are some benefits of setting up a foreign company in a developing country to invest in property?

<p>All of the above (E)</p> Signup and view all the answers

What are some of the benefits that companies enjoy when they meet the criteria for investment incentives or subsidies?

<p>All of the above (D)</p> Signup and view all the answers

What are some of the key questions that investors should ask when evaluating a potential investment?

<p>All of the above (E)</p> Signup and view all the answers

Flashcards

Global Business

Exchanging goods and services across international borders. Companies operating globally have branches in multiple countries, managing production, marketing, and distribution worldwide.

Global Real Estate

Real estate transactions and investments that span national borders.

Characteristics of Global Business

Global businesses operate in multiple countries, meet customer needs, communicate internationally, comply with trade laws, manage finances and currencies, depend on international suppliers, and face global political and economic issues.

Importance of Global Business

Global business fosters economic growth, enhances knowledge sharing, develops new markets, saves costs, increases competitiveness, improves understanding between cultures, benefits consumers, provides investment opportunities, and promotes sustainability.

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Singapore as a Global Hub

Singapore's strategic location, stable political and economic environments, pro-business policies, skilled workforce, easy business procedures, effective legal and financial systems, diverse culture, and strong infrastructure make it an attractive location for global businesses.

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Real Estate Market Dynamics

Factors like strong economies, low interest rates, government policies, demographics, urbanization, socio-cultural trends, and geopolitical events influence real estate markets.

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Key Global Real Estate Markets

Major real estate markets like the US, UK, Australia, China, Japan, and the Middle East attract significant investments due to factors like strong economies, robust investor confidence, capital appreciation potential, and development trends.

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Developing Real Estate Markets

These markets offer high growth potential due to rapid development and urbanization, but also entail higher risk and volatility, less mature market structures, and challenges in infrastructure and regulatory environments.

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Developed Real Estate Markets

Developed markets are stable, mature, and offer greater transparency, predictable returns, and lower risks, but with potentially slower growth.

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Asia-Pacific Real Estate Market

Diverse and rapidly growing, driven by urbanization, technology, and sustainability trends. Challenges include regulatory hurdles and economic volatility. Emerging markets offer investment opportunities.

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Motivations to Invest Overseas

Diversification, higher returns, market penetration, technical expertise, economies of scale, regulatory and tax advantages, building a global network are key reasons for investing in overseas real estate.

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Types of Global Real Estate Businesses

Variety of businesses including consultancy, brokerage/agency, property management, development, investment and asset management, REITs, and PropTech.

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Pre-development Risks

Potential problems in land acquisition, zoning approvals, marketing accuracy, deposit security, financing availability, and contractual obligations.

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Construction Risks

Uncertain timelines, quality concerns, difficulty in getting updates, and customisation limitations can create problems during the construction phase.

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Completion/Handover Risks

Potential issues with final inspection and legal document discrepancies, final payment terms, defects, interior fit-out, and handover process.

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Post-Handover Risks

Ongoing maintenance costs and responsibilities, potential insurance coverage issues, rental issues, and general property management issues, resale value fluctuation.

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Estate Agent

Individuals or companies facilitating property transactions, manage sales teams, handle complex transactions, follow regulations(e.g. CEA).

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Real Estate Salesperson

Individual facilitating property transactions, working under a licensed Estate Agent, needs licence to operate, adheres to code of ethics, and handles daily transaction activities.

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Property Buying Process Checklist

Thorough review of down payment, financing options, legal representatives, political landscape, local regulations, and property location details.

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Annual Rental Yield

Calculated as Rental Income per year divided by the Property Value.

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Study Notes

Global Business

  • Global business involves exchanging goods/services across international borders.
  • Global companies have many branches/offices in many countries.
  • They need to create, market, and distribute products worldwide and manage international operations.
  • They leverage competitive advantages in a rapidly interconnected world economy.
  • Examples include Starbucks (promoting sustainable/ethical practices) and Google.

Characteristics of Global Business

  • Operate in many countries
  • Meet the needs of customers in different markets.
  • Communicate effectively with people from diverse language backgrounds and cultures.
  • Adhere to trade rules and restrictions.
  • Manage currency exchange rates.
  • Face challenges in political and economic contexts globally.
  • Rely on networks of suppliers globally.
  • Compete with both local and international customers.
  • Manage across borders (requiring skilled managers).
  • Consider social and environmental responsibility in business practices.

Importance of Global Business

  • Economic growth (more jobs and productivity).
  • New markets (increased sales).
  • Knowledge sharing (exchange ideas).
  • Cost efficiency (using cheap labor/materials).
  • Competition (improving products for better competitiveness).
  • Cultural exchange (understanding people of other cultures).
  • Benefits for consumers (easier access to products).
  • Investment opportunities (portfolio diversification).
  • Social responsibility (sustainability/environmental friendliness).

SG as a Hub for Global Business

  • Strategic locations (easy access to global markets).
  • Stable political and economic environment (minimal corruption, robust economy).
  • Pro-business policies (tax incentives, streamlining of business setup).
  • Skilled workforce (highly educated and talented individuals).
  • Ease of doing business (transparent regulations and straightforward registration).

Global Real Estate Market Overview

  • Includes residential, commercial, industrial, and agricultural properties.
  • Influenced by local economies, regulations, cultural nuances, and geographical factors.
  • Encompasses broadening investment horizons beyond local borders, accessing opportunities for diversification, higher returns, and currency/tax advantages.
  • Strong economies (employment rates, income levels) lead to increased demand for real estate.
  • Low interest rates increase the demand for real estate.
  • Policies encouraging home ownership and foreign investment (e.g., governmental regulations and tax laws) increase demand.
  • Demographic factors (age, income, population size) influence different real estate types.
  • Urbanization and infrastructure development lead to increased real estate demand/valuation.
  • Socio-cultural trends (remote work) affect demand for office space.
  • Political stability and international relations impact real estate market conditions.
  • Significant events, such as the COVID-19 pandemic, create shifts in real estate markets (demand and prices).
  • Key global markets include the US (mature, diverse, strong economy), and others globally showing robust demand.

Types of Global Real Estate Businesses

  • Consultancy/advice services (investment/development).
  • Brokerage/Agency (selling/leasing).
  • Property management (day-to-day operations).
  • Development (planning/construction).
  • Investment and asset management (management on behalf of clients).
  • Real estate investment trusts (REITs)(financing of real estate income generating properties).
  • Property technology (PropTech)(e.g. property search;online property buying-selling).

Buying Foreign Property: Steps and Considerations

  • Determine budget: Assess suitability for your financial situation.
  • Engage Agent: Seek advice for better buying process.
  • Property search: Identify suitable properties in the target market.
  • Financial planning: Obtain financing pre-approval.
  • Property viewings: Inspect and evaluate prospective properties.
  • Negotiate price: Finalise agreed-upon price and payments.
  • Contract signing: Establish legal contract for property.
  • Final payment: Complete outstanding property value payment.
  • Property handover: Receive title to the property.
  • Ongoing costs: Account for ongoing fees (e.g., insurance, taxes, property management).
  • Legal considerations: Seek legal advice concerning legal documents, contracts, and ownership transfers.
  • Political and Social factors: Research and evaluate country's socio-political conditions (stability, unrest, natural disasters).
  • Currency exchange rates: Understand potential fluctuations due to exchange rate.

Additional Information (general)

  • Includes details on legal considerations, accounting and tax implications (especially for foreign investors), company structures, ownership type, country specific policies that can impact international property investments, due diligence, legal and financial aspects.
  • Contains considerations for specific counties such as Malaysia, Australia, Thailand, Singapore, etc.

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Description

This quiz explores the key concepts and characteristics of global business, including the challenges faced by international companies, the importance of managing operations across borders, and the role of cultural awareness in effective communication. Understand the dynamics of operating in a global marketplace with examples from prominent global companies.

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