INTERNATIONALIZATION

AND
GLOBALIZATION

Maribel Fernndez Pons

Maribel Manjn Gmez
Bartolom Bordoy Barcel
Xavier Bernab Lliteras

P H A S E 1 INTERNATIONALIZATION
With this last stage we want to do a little investigation of which moves we could carry out for our
business in order to positive results over the time.
One of the possible options for these benefits would be the creation of a new placement in another
location following the characteristics of the company's activity that we do.
Firstly we note that if we want to expand to other cities or countries, the first thing we should do is
to transform our company, created as a limited partnership, into an anonymous company as this
little company could expand rapidly as a business for the future. At the same time, it would be
necessary to achieve external monetary contributions which allow us to carry out this expansion.
Also, we could raise funds between partners to create a franchise named UNIQUE.
In this way we don't have to spend our capital to expand, we only need to let someone take our
name and our know how and do the activity to obtain some benefits through these franchisee.
These know how are all the skills needed to manage a business like ours, how to deal with our
customers, as they are the cornerstone to carry out our business.

This is a way to achieve a territorial expansion and to

supply the demand of our clients. Creating a franchise
has some advantages and disadvantages which we will
now develop.

Some advantages of being a franchisor are:

1. It is the best and quickest way to conduct

business with minimum external financial support
and infrastructure.
2. Reduces the need for good middle management
and to establish permanent controls as the first
interested in a good functioning of the business is
the franchise itself.
3. Lower personnel expenses and control systems.
4. You can make large scale economic policies in terms of manufacturing, purchasing and
cost.
5. Economic, financial and commercial risk is reduced.
6. Allows the opening of new markets.

7. More quickly in addressing the expansion plan.

8. Greater control of production, supply and distribution of products or services.
9. You can get ideas and experiences with no cost.
10. Contributes to create a strong brand, and greater visibility and market presence.

Some disadvantages of being a franchisor are:

1. Important initial investment as the design and implementation of the franchise requires this
first disbursement.
2. Increased complexity in communication with the various outlets.
3. Franchisee errors may emerge in the web 3.0 franchisor.
4. Sometimes tense relations with franchisees occur because the hierarchical dependence.
5. Transfer of know-how to the franchisees, which in the absence of sufficient confidentiality
can be problematic.
6. Possible loss of direct contact with the market and information about it.
7. Lower profit per unit, but higher profits by selling more units.
8. The limitations you have when making certain decisions, due to the resistance of the
franchisee to follow the rules of the franchisor.
9. Problems when making strategic business change.
10. Great risk of unfair competition.
Besides considering some localities in the country such as the cities of Barcelona and Madrid,
places where there are already similar activities that we can supply, we thought of
internationalization outside the European territory. And so we come to mind to create a UNIQUE
China.
Although the country has opened economically, the traditional Chinese mentality has not changed
too much on the subject of marriage. It is an obligation of children to marry, have children and take
care of them once they are older. Thus, the main requirement is dating. But the one-child policy
has created a large gender inequality in China. There 120 boys and only 100 girls are born at the
same time. These data show us that in 2030 there will be 25% of men sentenced to a mandatory
singleness.
Thus trying to meet a social need has ended up in a business that moves millions. The dating
industry in China is powerful. The quotes online in China generated a profit of $ 75 million in 2010
and is expected to exceed 250 million by 2015.

Thus this opportunity and expansion can be analyzed to create a

society in Hong Kong. The open society in Hong Kong has some
advantages and disadvantages that we are going to comment
now:
(All costs which came in HKD (Hong Kong Dollars) have been
transformed into euros for easy understanding. Each 10HKD are
about 1 ).
Advantages

Hong Kong is the most liberal economy in the world. Opening a limited liability company is
simple, fast and inexpensive. The government requires a registration fee of 173 for the
company and a fee of 225 for the business registration certificate.

It is not necessary to live there because you can hire an administrative office and get an
address for a small annual fee; approximately 500/600 per year.

Hong Kong has a simple tax system, the company will pay 16.5% tax benefit from the same
country.

The capital required to Hong Kong is lower than in most countries, 1,000

Hong Kong is a major financial center, and once the company is registered there, you have
the right to open a bank account multi-currency business.

Hong Kong is the best gateway to mainland China.

Although Hong Kong is from the political point of view, a province of the People's Republic
of China, its legal system is different from mainland China since the English system
prevails.

Disadvantages

A major problem was the language but as the city is so cosmopolitan it would not be difficult
to find a Chinese who can speak a high level English or even Spanish.

The clash of cultures could be a little problem for the smooth running of the company but
seeing how important family culture is in that country, we believe it is important for our own
company.

Opening a company in Hong Kong needs to accomplish a variety of requirements that can
be difficult for a foreigner. For this reason, there are companies that are in charge to do that
work only for 300 .

Opening a business there will not grant a visa to reside there. This can lead to some
inconveniences when traveling for business affairs.

After analyzing the advantages and disadvantages of opening a company in Hong Kong, we will
study the resources needed to open it.
There are several agencies that provide all the services necessary to open the company without
having to travel to the country for about 500/600 per year. You can discuss all the details via email
or phone, send all the necessary documents by email, pay via Paypal, credit card, bank transfer
and receive the final documents at home and send them back via
DHL or other international courier. The whole process can last two or
three weeks.
The first will pay agency fees and choose a name for the company.
The agency will check the availability of the name in Hong Kong or if
it is already taken.
Then a copy of the passport, a copy of an official document as proof of residence (ex. an identity
card), a standard form with questions, such as the address, passport number, the name of the
director and shareholders, have to be sent to Hong Kong.
At this point, once checked, agents can send the "Form NC1 (Incorporation Form)" and
"Memorandum and Articles of Association", ie, two official documents to fill out, sign and send back
to your agency for the completion of all formalities.
With these simple steps, we could have established our company in China. Now we can analyze
the annual costs to implement this company.

First year:
Documents related to the formation of the society, stamps, etc: 207
The record company (government rate) 173
The Commercial Registration Certificate (government rate) 225
The provision for administration: 350
The provision for the registration office address: 200
Attendance to open your business bank account: 100

In total we can count about 1.255 for the Opening of the society and everything needed to start
working in the country.

The second and subsequent years:

The Commercial Registration Certificate (government tax) 225
The Certificate of Business (government tax): 10.5
The provision for administration: 350
The provision for the registration office address: 200

From the second year, we will have to pay about 785.5 per year to keep the company running.
The certificate renewal business is a simple process, as there is no need to sign any document:
the agency will charge their fees, handle all the paperwork and send the new business certificate.
Finally, within 18 months of incorporation (and then every following April) we must fill the "Profit Tax
Return." The agency can also provide accounting and audit. This does not come for free and prices
may vary because they are based on the volume of invoices generated.
An example of the cost it could represent for our company is that for about 100 transactions may
be paid 280 for accounting and 600 for auditing. The invoices and bank account statements can
be sent by email, and the agency will take care of the rest.