Free «Establishing an Organization Offshore» Essay Sample

Establishing an Organization Offshore

Establishing an organization offshore is a demanding. Before establishing a company in a foreign country a person should fist gather all the fundamental information to know the challenges and opportunities he faces.

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South Africa is a leading African economy while Korea is a world economy. Investing in South Africa presents the investor with the opportunity of tapping the sub-Saharan market while in Korea the investor taps the potential in the neighboring world economic giants.

South Africa’s population composes of blacks, whites and colored. The country is divided along race and ethnic boundaries. Mebers of the races do not interact with the other members freely. The country has a culture which affects the way they transact business. They expect the foreigners to observe these practices.  However, their culture does not affect business operation to a great extent. On the other hand, business in Korea is highly affected by their culture. There is no distinct separation between social, private and business life.

South African state has put in place policies which encourage small business investors and discourage establishment of branches. Foreign organization opening branches in South Africa need to bring in their managers. In Korea, the government has incentives whhich encourage massive investments. The Korean government discourages small investors and encourages huge interments. Foreign organizations managers are expected to learn of be experienced in the informal Korean life style which forms the fundamentals in their business transactions.

Conditions in south Africa makes it ideal to establish a business independent fro m the mother company. However, the chief officials should come from the mother company for easy monitoring of the organization. In Korea, it is ideal to establish a Branch with a huge potential. To realize maximum benefits from this branch, it should be managed by an experienced Korean from a prominent family.

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