Key Factors and Business Location Case Study
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Transcript Key Factors and Business Location Case Study
HEC
January International Business Seminar :
Key Factors and Business Location Case Study
Monday 29th of January 2007
Jack Anderson
CEO, Attorney at Law
January 29, 2007
Summary
I. Introduction
II. Foreign Direct Investment
III. Tax Misery & Reform Index
IV. Tax / Spending Burden
V. € 200.000 Income, Married
VI. The local Employee Happiness Index
VII. Misery Index for Expatriates
VIII. Analysis by region and function
IX. Conclusion
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I. Introduction
• Review of key factors
• Tax considerations only break ties for a final decision
• Case study and your recommendation
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II. Foreign Direct Investment (in-bound by country)
1997-2005 (US Dollar Millions 000,000)
**
Source : UNCTAD (note that after
** FDI France doubled in
2001 Belgium and Luxembourg
2005 vs 2004 to be N°4 in
are separately reported, but
the world and, in 2006 to
separate reporting for prior years
remain N°4 increased 40%
is not available)
but represents only half of
* For 2005 only OECD country
number 2, the UK
datas available
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II. 1. FDI Out-bound from developing countries
• One-half global GDP (in PPP) is from developing countries
• Growing FDI:
5
FDI 2006
% Increase
(2005-2006)
In
In
China
70.0
-3.3
China, Hong Kong
41.4
15.4
India
9.5
44.4
Russia
28.4
94.6
Brazil
16
5.9
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FDI inflows, by host region and major host economy, 2004-2006
(billions of dollars)
Source: Unctad - a) Preliminary estimates
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II. 2. France : Outbound & Inbound Direct Investment by French and
International Investment
Notes : Data are converted to US dollars using average exchange rates; p: preliminary; e: estimate
Source: OECD International direct investment database
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III. Tax Misery and Reform Index
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IV. Tax / Spending Burden
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V. €200,000 Income, Married
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V. €200,000 Income, Married (next)
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(New Orleans)
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VI. The Local Employee Happiness Index
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VI. The Local Employee Happiness Index (next)
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VII. MISERY INDEX FOR EXPATRIATES
January 29, 2007
Comparative cost of US expatriates in 8 EU cities
Expatriate Gross salary - $ 100 000
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Comparative cost of US expatriates in 8 EU cities
Expatriate Gross salary - $ 200 000
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Comparative cost of US expatriates in 8 EU cities
Expatriate Gross salary - $ 500 000
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VII. Analysis by region and function
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Leaders and challengers by criteria and trends
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The top 10 most attractive countries in 2006
(total superior to 100% - 3 possible choices)
Ranking 2005:
41%
41%
18%
18%
20
China
Germany
India
China (52%)
2)
USA (39%)
3)
India (18%)
4)
Poland (17%)
15%
11%
USA
1)
Poland
United
Kingdom
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8%
8%
7%
6%
Czech
Republic
Japan
France
Spain
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The most attractive global areas 2006
(total superior to 100% - 3 possible choices)
Ranking 2005:
68%
21
8%
5%
1%
O
ce
an
ia
Ja
pa
n
8%
id
dl
e
La
tin
in
eg
io
n
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12%
Am
er
ica
15%
As
ia
In
di
a
O
th
er
R
na
Ch
i
W
es
Ce
te
nt
rn
ra
Eu
l&
ro
Ea
pe
st
er
n
Eu
ro
pe
US
A
/C
an
ad
a
18%
Af
r ic
a
41%
Ea
st
48%
M
52%
1) Western Europe (63 %)
2) Central & Eastern Europe (55 %)
3) China (52 %)
4) USA / Canada (45 %)
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Investors’ preferred areas by functions
(% of quotation for each region as first choice)
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The Top 10 countries for production units 2006
(% of citations for each country – one selection)
18%
Ranking 2005:
China (23 %)
Poland (11 %)
Germany = USA (6%)
11%
9%
7%
China
23
Germany
USA /
Canada
Poland
4%
4%
4%
India
United
Kingdom
Czech
Republic
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3%
3%
3%
Other
region in
Asia
Hungary
France
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The Top 10 countries for call centres 2006
(% of citations for each country – one selection)
14%
Ranking 2005:
11%
11%
1) India (23 %)
2) Poland (11 %)
3) Germany = USA (6%)
5%
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a
2%
hi
n
lic
ep
ub
3%
C
ze
ch
R
C
3%
d
la
n
ng
d
Ki
d
U
24
Po
om
a
e
nc
Af
ric
ni
te
SA
/C
U
Fr
a
a
an
ad
an
y
m
G
er
In
d
ia
3%
an
d
5%
Ire
l
5%
Réf.
The Top 10 countries for headquarters 2006
(% of citations for each country – one selection)
20%
Ranking 2005:
16%
1) USA/ Canada (23 %)
2) UK (14 %)
3) Germany (11%)
25
3%
2%
Ch
i
na
2%
a
3%
Au
st
ri
Fr
an
ce
Be
lg
iu
m
4%
Sw
it z
er
la
nd
Ne
th
er
la
nd
s
te
d
Ki
ng
do
m
an
y
G
er
m
5%
Un
i
US
A
/C
an
ad
a
6%
Ja
pa
n
10%
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The Top 10 countries for research & development centres 2006
(% of citations for each country – one selection)
21%
21%
Ranking 2005:
1) USA/ Canada (22 %)
2) Germany (18 %)
3) France = UK (7%)
7%
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2%
ly
2%
Be
lg
iu
m
er
la
n
d
2%
Ita
3%
Sw
i tz
pa
n
Ja
di
a
ce
In
in
g
d
G
K
Fr
an
do
m
y
an
er
m
3%
U
ni
te
U
SA
/C
an
a
da
4%
C
hi
na
7%
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Advantages and threats to Western Europe as a business location
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Now: Where do you want to work in the world ? Where you have the
highest « Real Pay » ?
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Where are the entrepreneurs and the IPO’s ?
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IX. Conclusion
Nothing is miserable but what is thought so, and contrariwise, every
estate is happy if he that bears it be content.
Boethius (A.D. C. 470-525)
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