Global Business Overview
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Questions and Answers

How do government regulations and tax laws influence the real estate market?

  • They have no significant impact on property demand.
  • They only stabilize the market during economic downturns.
  • They can amplify or mitigate impacts on the market. (correct)
  • They only affect residential properties.
  • What demographic factors can affect different types of real estate?

  • Age, income, and population size. (correct)
  • Technological advancements and education levels.
  • Temperature and weather patterns.
  • Historical events and cultural monuments.
  • What impact does urbanization have on property values?

  • It decreases property values in rural areas.
  • It has a negligible effect on the real estate market.
  • It increases demand in cities and subsequently property values. (correct)
  • It exclusively benefits commercial real estate.
  • Which factor is crucial for the stability of the real estate market in Japan?

    <p>Strong regulations and market stability.</p> Signup and view all the answers

    How did Covid-19 influence the real estate market?

    <p>It altered living and working patterns, leading to shifts in property demand and prices.</p> Signup and view all the answers

    What is one primary responsibility of a property agency?

    <p>Manage Real Estate Salesperson's (RESs) activities</p> Signup and view all the answers

    Which of the following is true regarding Real Estate Salespersons (RESs)?

    <p>They must pass the RES examination</p> Signup and view all the answers

    What distinguishes the legal obligations of property agencies from those of Real Estate Salespersons (RESs)?

    <p>EAs have higher legal responsibilities</p> Signup and view all the answers

    Which of the following statements about the licensing of EAs and RESs is correct?

    <p>EAs can employ multiple RESs under their license</p> Signup and view all the answers

    What is a significant difference in the scope of work between EAs and RESs?

    <p>EAs have broader responsibilities including oversight of RESs</p> Signup and view all the answers

    What is required for a foreign investor to purchase property in Malaysia?

    <p>Approval from the State Government and adherence to state price requirements</p> Signup and view all the answers

    What percentage of down payment is typically required from foreign purchasers in Malaysia?

    <p>30%</p> Signup and view all the answers

    Which of the following is NOT a component of the project execution phase in property development?

    <p>Navigating local market partnerships</p> Signup and view all the answers

    What is the role of the Foreign Investment Committee in property investments?

    <p>To grant approvals for foreign investments based on local economic interests</p> Signup and view all the answers

    When should a homebuyer secure mortgage approval in Malaysia?

    <p>Before receiving the Option to Purchase (OTP)</p> Signup and view all the answers

    What are the tax implications when purchasing property in Malaysia for foreigners?

    <p>Stamp Duty applies to property purchases</p> Signup and view all the answers

    Which of these is an essential regulatory approval required before starting property development?

    <p>Environmental impact assessment</p> Signup and view all the answers

    What is the purpose of the Option to Purchase (OTP) in the context of buying property?

    <p>To offer a legal document for exclusive purchase rights</p> Signup and view all the answers

    What is one of the non-tax benefits of investing in a BOI company in Thailand?

    <p>Visas and work permits</p> Signup and view all the answers

    Which of the following is a disadvantage of setting up a BOI company?

    <p>Higher initial capital investment</p> Signup and view all the answers

    What is a common structure for companies that want to invest in property?

    <p>Nominee structure</p> Signup and view all the answers

    Which of the following countries does not allow foreigners to purchase land outright?

    <p>Vietnam</p> Signup and view all the answers

    Which taxation type is typically levied on property transactions?

    <p>Stamp duties</p> Signup and view all the answers

    What is the purpose of land zoning in property development?

    <p>To limit the development intensity on a site</p> Signup and view all the answers

    When repatriating funds from overseas property investments, which is a potential limitation?

    <p>Availability of local currency</p> Signup and view all the answers

    What is the preferred debt to equity ratio for eligibility in BOI promotions?

    <p>3:1</p> Signup and view all the answers

    What is the primary purpose of groundbreaking in the construction stage?

    <p>To officially begin construction</p> Signup and view all the answers

    Which of the following is a responsibility of buyers during the construction stage?

    <p>Make periodic payments as per schedule</p> Signup and view all the answers

    What should buyers expect during the final inspection stage?

    <p>A thorough inspection for defects or issues</p> Signup and view all the answers

    What is one of the ongoing responsibilities after the handover stage?

    <p>Participating in community engagement activities</p> Signup and view all the answers

    What must buyers be aware of regarding potential customisation during construction?

    <p>Options for customisation may be limited</p> Signup and view all the answers

    Which aspect is NOT typically included in post-handover responsibilities?

    <p>Performing final inspections</p> Signup and view all the answers

    What are buyers required to monitor post-handover for potential opportunities?

    <p>The property value for resale opportunities</p> Signup and view all the answers

    What guidelines do Estate Agents follow when marketing properties?

    <p>Council of Estate Agents guidelines</p> Signup and view all the answers

    Which step in the property buying process involves legally binding both parties?

    <p>Signing the contract and paying the deposit</p> Signup and view all the answers

    What is a notable difference between local and foreign buyers regarding FIRB?

    <p>Foreign buyers must seek FIRB approval before purchasing property.</p> Signup and view all the answers

    Which of the following is essential when determining your budget for property purchase?

    <p>Obtaining pre-approval for a mortgage.</p> Signup and view all the answers

    What is typically required from foreign buyers when acquiring a property that is not under construction or new?

    <p>They must demolish existing structures first.</p> Signup and view all the answers

    What type of auction is commonly used for purchasing property in Australia?

    <p>Open auction</p> Signup and view all the answers

    What is an ongoing expense associated with property ownership in Australia?

    <p>Utility bills</p> Signup and view all the answers

    Which professional should you engage to handle legal aspects when purchasing property in Australia?

    <p>Conveyancer or solicitor</p> Signup and view all the answers

    What is one of the reasons why foreign buyers may face tighter lending criteria compared to locals?

    <p>They are often considered higher risk by lenders.</p> Signup and view all the answers

    In what situation can foreign buyers purchase established dwellings in Australia?

    <p>If they plan to demolish and build more dwellings.</p> Signup and view all the answers

    Study Notes

    Global Business

    • Global business involves exchanging goods and services across international borders.
    • Global companies operate internationally, with branches or offices in multiple countries.
    • They leverage competitive advantages to thrive in a rapidly interconnected world economy.

    Characteristics of Global Business

    • Companies operate in multiple countries.
    • They meet diverse customer needs/preferences across cultures in multiple territories.
    • Businesses adapt to different languages and cultural norms.
    • Corporations must follow trade restrictions and regulations in each country.
    • Managing diverse suppliers/vendors in various countries creates a complex supply chain.
    • Competition with local and international players is a key challenge.
    • Global operations require skilled managers with expertise in coordinating across borders.
    • Firms must consider the social and environmental effects of their business practices.

    Importance of Global Business

    • Drives economic growth, generates employment, and enhances productivity.
    • Companies access new markets, expand sales, and increase profits.
    • Sharing knowledge and ideas leads to innovation and improvement across cultures.
    • Utilizing cost-effective labor and materials from diverse geographic locations is a key benefit.
    • Global competition forces companies to improve their products, services, and operations to stay ahead.
    • Cultural exchange and interaction between individuals in global operations promote mutual understanding.
    • Consumers benefit from wider access to a variety of products and services.
    • Investing in foreign assets and businesses creates diverse investment opportunities in global settings.
    • Businesses must adopt sustainable practices and environmental/social responsibility in their global operations.

    SG as a Hub for Global Business

    • Singapore's strategic location within major global markets provides easy access for business interactions.
    • The stable political and economic environment translates to lower corruption and robustness.
    • Pro-business policies, tax incentives, and ease of doing business attract global companies.
    • Singapore's skilled and educated workforce attracts talent and expertise from across the globe.
    • A transparent and straightforward regulatory environment promotes faster business establishment.

    Global Real Estate Business

    • Globalization of the real estate sector is increasingly evident through cross-border investment flows.
    • Rapid urbanization and technological advancements, especially in proptech, drive accessibility for foreign investors.
    • Collaboration between various real estate firms and international investors influences the dynamics of real estate.
    • Diverse portfolios of properties across different countries are a hallmark of globalization of real estate business.
    • Education and training programs are now offered globally in various real estate fields.
    • Diversification of investments to mitigate risks and enhance returns in real estate is a notable trend.
    • Increase in market penetration, customer acquisition, and brand/revenue gains are primary goals in real estate.
    • Knowledge exchange, and better use of technology and innovation in real estate are becoming key.
    • Global regulations contribute to attracting foreign investments.
    • Global real estate business types include: consultancy, brokerage, property management, development, investment and management, and related technologies.

    Motivations for Going Overseas

    • Market diversification.
    • Growth potential.
    • Market penetration (to increase customer base/brand/revenue).
    • Expertise and innovation to stay competitive.
    • Synergies and economy from operating in several markets.
    • Regulatory and tax considerations to maximize financial benefits and minimize risk.
    • Building a global network.

    Types of Global Real Estate Business

    • Consultancy services for investment and development strategy.
    • Brokerage or agency services for property sales and leasing.
    • Property management services to handle day-to-day operations.

    Real Estate Market Overview

    • Economic decisions, interest rates, government policies, and demographics significantly influence the real estate market(residential, commercial, industrial, agricultural).
    • Urbanization and infrastructure development are major drivers of real estate demand and valuation growth.
    • Socio-cultural and geopolitical factors impacting real estate markets include remote working trends, political stability, international relations, and conflicts.
    • The COVID-19 pandemic has altered living and working patterns, leading to shifts in property demand and price trends.
    • Global real estate markets have differing characteristics, and some, like those in the United States, remain robust.
    • Some key challenges in developing real estate markets include higher volatility, less mature markets, and risk of higher instability.
    • Conversely, developed markets offer relatively stable, mature, transparent and predictable returns, but also have lower growth potential.

    Buying Foreign Property

    • Review options for potential properties.
    • Determine a realistic budget.
    • Understand local regulations and legal requirements.
    • Use due diligence to assess risks & conditions.
    • Consider agent(s) and legal representatives for support.
    • Financing (check loan approval availability, etc).

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    Global Business PDF

    Description

    This quiz explores the essential concepts and characteristics of global business operations. Learn how companies navigate international trade, cultural diversity, and competitive challenges. Understand the importance of skilled management and regulatory compliance in a global economy.

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