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OCTOBER 2015 BRIEFING
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SH INTERNATIONAL LLC


OCTOBER 2015 BRIEFING


The (Not So) New Reality
 
Dear Clients & Friends of SH International:
 
The last couple of months have seen billions of dollars in capital outflows from emerging markets. A recent Fortune article entitled “This is the New Reality in Emerging Markets,” says that these economies are no longer predictable. However, this is not in fact a new reality. Volatility and risk have, in fact, been defining characteristics of emerging markets. 
 
It is critical to account for these omnipresent risks in expanding your business into these countries. With the right strategy in place, your business can have the flexibility and agility to continue to grow even in rough times. More importantly, with some patience and attention to long-term relationships, your company will be positioned to soar once these markets re-strengthen.
Revisiting Turkey
A Reflection on Diversification
 
Our company started with an informal focus on Turkey. With its rising consumer spending power, and our strong networks, we were eager to help US companies expand into Turkey.
However, due to various regulatory hurdles of doing business in Turkey, we started encouraging clients to also look at other countries in the region with more friendly international trade environments, like the United Arab Emirates.
 
Since then, we have successfully closed deals in this region for our clients. Depending on specific circumstances, we have encouraged them to further diversify into Latin America, Asia, or Africa. The benefits of diversification go beyond mitigating macroeconomic risk.
 
Having more than one “pot on the stove” increases the likelihood of advancing in one initiative, even while experiencing frustrating hiccups in another. This makes it easier to be patient through challenges, which is often difficult for entrepreneurs and business-owners eager to see their businesses grow.
 
With a considerable devaluation of the Turkish lira (23% in the last year alone), a destabilizing influx of Syrian refugees, and a serious and tragic attack in Ankara last week, expanding into Turkey is less attractive than a few years ago.
 
Our business is still growing, because we recognized the need to diversify our interests, and those of our clients, early on. While we maintain a long-term interest in Turkey and expect the situation to improve, this experience underscores the importance of diversification in global business expansion strategy. 
Breaking Into the Trade Game
Learning
 
Last month, SH International was once again invited to deliver a day-long emerging markets business training to local businesses in the Breaking Into the Trade Game Program.

This program was presented by Global Enterprise Hub, Fox School of Business, SCORE, U.S. Small Business Administration, U.S. Commercial Service, and Mid-Atlantic District Export Council.
Sara presented on a variety of issues in the emerging markets context, including:

-Risks and Rewards

-Personal Characteristics for Success and Failure
 
-Legal (and Illegal!) Issues

-Commercial Relationships

-Global Financing Sources

While not a core service offering, we view these trainings as an opportunity to share knowledge with companies interested in increasing their presence in emerging markets.

We invite anyone interested in a similar training to e-mail us.
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ABOUT SH INTERNATIONAL LLC

We expand businesses through emerging markets deals, ventures and initiatives. We leverage a proprietary network of resources, specialists and partnerships to achieve powerful results. Based in multilingual and practical experience on five continents, we provide your company with truly global vision. Tell us more about you...
Copyright © 2015 SH International LLC, All rights reserved.


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