How to understand US cultural differences impacting your business: Hofstede’s 6-D model

How to understand US cultural differences impacting your business: Hofstede’s 6-D model

Business
By Sheena Liang For any international executive trying to do business in the United States, one of the main challenges is learning to navigate cultural differences between this country and his or her country of origin. They can be subtle sometimes but can have an enormous impact on multiple activities including hiring and managing employees, selling, negotiating contracts, and many others. In this article, we present one of the most widely used models for the understanding of cultural differences and use it to identify the most relevant ones when comparing the United States and several other countries. It has been improved over more than 50 years through extensive research. The 6-D model, or Hofstede’s cultural dimensions theory – describes the relationship between culture, society, and individuals. This model was originally developed…
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What does your company do? How to make an effective elevator pitch

What does your company do? How to make an effective elevator pitch

Business Development
By Sheena Liang An elevator pitch is a professional introduction that will hopefully lead to a deeper dialogue about the value of what you and your company can offer. Why is it called an elevator pitch? The term comes from the idea that if you ended up in an elevator with someone, what would you say about your company on the elevator ride to start a conversation with them? In the United States, an elevator pitch is essential because people expect to learn about your company in a short amount of time. A successful elevator pitch should spark your audience’s interest and make them want to hear more.  In general, you can use an elevator pitch anytime when someone asks you, “What does your company do?” An elevator pitch can…
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War in Ukraine: Impact on international companies doing business in the US

War in Ukraine: Impact on international companies doing business in the US

Business
Introduction World attention has been focused on the very serious events that are taking place in Ukraine as a result of the attack launched by Russia on February 24. We dedicate this article to analyzing the impact that this crisis is having on international companies that participate in some way or plan to enter the US market. Some aspects such as sanctions or export restrictions can indirectly generate problems in your operations. Others are a source of potential opportunities.The United States government immediately initiated a series of punitive actions in response to the Russian attack, through executive orders from President Biden translated into concrete actions managed by the Bureau of Industry and Security (BIS) of the Department of Commerce, and the Office of Foreign Assets Control (OFAC) of the Department of…
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Do you know form 5472? Ignoring it could cost you $25,000… or a lot more!

Do you know form 5472? Ignoring it could cost you $25,000… or a lot more!

Laws and regulations
INTRODUCTION Creating a company in the US is extremely easy compared to other countries, it is a process that we explain in detail in our free guide. However, there are some details that must be taken into account. Ignoring them can be extremely costly. An example is form 5472 of the US tax authority, the Internal Revenue Service or IRS, which, with few exceptions, must be completed annually by foreign companies doing business in the US, as well as US companies that have more than 25% of its capital in the hands of foreign persons (individuals or legal entities), directly or indirectly. WHAT IS FORM 5472? This form is used to inform the IRS of the activities in the US of foreign companies or activities of US companies with more than 25%…
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How to win contracts from the world’s largest client (3): Advantages for Small Businesses

How to win contracts from the world’s largest client (3): Advantages for Small Businesses

Government Contracts
Introduction This is the third installment in the series on "How to win contracts from the world's largest client, the US Government", which started with the first article in which we talked about the structure of the government, the ways that a non-US company can use to access this gigantic market, the initial procedures that must be followed, types of government contracts and aspects to take into account when preparing bids.In the second article we deal with the applicable regulations that must be taken into account, how some of them are barriers to entry of special relevance to international companies or their US affiliates, and what solutions can be used to cross them.In this third and final installment of this series, we focus on analyzing the advantages that small businesses can…
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Incorporate in Delaware? Myths, realities and the Delaware flip

Incorporate in Delaware? Myths, realities and the Delaware flip

Business
Introduction Delaware is a small state on the East Coast of the US, not far from major metropolitan areas (Washington DC, Baltimore, Philadelphia and New York), with less than 1 million residents. Its largest city is Wilmington, with a population of around 71,000. Apart from being the home state of President Biden, a proud Delawarean, it is famous for some advantages offered to businesses. When establishing a subsidiary in the US, one of the main decisions that international companies need to make is which state to choose. There are many implications that need to be analyzed carefully. Unfortunately, there is quite a bit of misinformation regarding pros and cons of the different options. A lot of it is connected with the alleged advantages derived from setting up the business in…
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3JIT and Anzen Engineering select Markentry USA as partner for US market entry

3JIT and Anzen Engineering select Markentry USA as partner for US market entry

Business
3JIT, Anzen Engineering and Markentry USA today announced the signature of a strategic collaboration agreement. Thanks to this agreement, Markentry USA will act as local partner in the United States for market analysis, strategic planning and business development support in order to optimize the development of Anzen Engineering’s business in the US market, initially in the area of RAMS engineering for the Urban Air Mobility (UAM) market. Through this partnership, Markentry USA will use its strong background in US market entry and the aerospace business to help Anzen Engineering design and implement a successful strategy to increase its portfolio of international customers and serve new clients in the United States, a country that currently offers massive opportunities and growth in UAM.  3JIT is a consulting company with the purpose and firm commitment to the added…
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How to win contracts from the world’s largest client: the US Government (2): Regulations, barriers and solutions

How to win contracts from the world’s largest client: the US Government (2): Regulations, barriers and solutions

Government Contracts
Introduction This is the second installment of the series on "How to win contracts from the world's largest client, the US Government". In the first article we talked about the structure of the government, the ways a non-US company can access this gigantic market, the initial procedures that must be followed, types of government contracts and aspects to take into account when preparing proposals.In this second article we deal with the regulations that must be taken into account, how some of them pose entry barriers of special relevance for international companies or their US subsidiaries and what solutions can be used to avoid them. We talk about aspects such as the FAR, the 'Buy American Act', ITAR & EAR, restrictions on classified contracts, CMMC, CFIUS and barriers to outsourcing abroad. We…
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The US approves a $1.2 trillion Infrastructure Plan, creating huge opportunities for international companies

The US approves a $1.2 trillion Infrastructure Plan, creating huge opportunities for international companies

Government Contracts
After eight months of negotiation in the US Congress, finally the House of Representatives approved late on Friday the 5th the “Infrastructure Investment and Jobs Act”. With 228 votes in favor and 206 against, the decision had the support of most members of the Democratic Party (all its representatives except 6 voted in favor) and the rejection of the majority of the Republican Party, although 13 of its representatives also gave their approval. Given that the law had already been approved by the Upper House or Senate in August by a wide majority (69-30), it only awaits the presidential signature to become effective. This is a cornerstone of Biden's legislative agenda. It is an essential element of the “Build Back Better” plan, one of the pillars of his electoral program.…
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How to win contracts from the world’s largest client: the US Government

How to win contracts from the world’s largest client: the US Government

Government Contracts
Introduction The federal government of the United States is the largest customer in the world. According to USA Spending, the budget for fiscal year 2021, out of a total of 8.5 trillion dollars, includes 832 billion for services and supplies, as well as 165 billion for asset purchases. On the other hand, states and local governments (counties and cities) manage budgets totaling more than 4 trillion dollars. International companies often ignore or avoid the US government market because they incorrectly understand that it is closed to them or is very difficult to access. If they do, they may miss out on great opportunities. Of the top 100 companies that win contracts with the US government, about 35 are headquartered in other countries. As an example, BAE Systems, a British aerospace…
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