When you decide the time is right to expand your business into global markets, the first question you’ll face is: Where?

If you’re looking to sell a product in an international market, you’ll need to find a market that’s compatible with your product. If you’re looking to source or manufacture goods from another country, you will need to find a place with a good workforce. Both international sales and international production do best in an area with friendly importing and exporting policies.

While finding the right location for your international expansion will depend on your unique business plan, there are some locations around the world that are universally business friendly. These cities can help provide you with a jumping off point for researching potential global hubs for your business.

Based on workforce, trade regulations, monetary factors and market, these five cities are among the best global business environments for international ventures.

1. Hong Kong

Hong Kong has long been a favorite location for international businesses, and with good reason. The governmental infrastructure in Hong Kong encourages business growth. The process for starting a business in Hong Kong is simple, as is the tax structure. The legal system is fair and easy to follow. The Chinese territory has a large base of potential employees and customers, and it links easily to the manufacturing hubs of Shenzhen and Guangzhou.

2. Singapore

Singapore also gets ample attention as a center of international business. It serves as an entryway to the greater Asian market, providing easy access to 3 billion people. Singapore boasts one of the world’s largest ports and a high-capacity international airport, both of which facilitate logistics for companies located within the country.

From a legal perspective, Singapore  is also business friendly. It limits red tape and has generous immigration laws, which makes locating a business in the city relatively quick and easy. Singapore also is known for its vast workforce.

Businesses setting up shop in Singapore, regardless of the type of business they do, are likely to find the manpower they need to support their growing operations.

3. Stockholm

For businesses looking to expand into the European market, Stockholm provides a competitive but prosperous environment. The city boasts the most successful startups per capita in all of Europe.

Most expanding businesses know they will see higher tax rates in Europe, and Stockholm offers no exception, but Swedish laws are known for being incredibly business friendly, with a fast and easy startup process. Businesses opening in Stockholm also will find a trained and educated workforce, as well as easy access to the rest of the European market.

4. Amsterdam

Amsterdam offers businesses the infrastructure they need to enter the European market and grow. The city has the largest internet hub in the world, as well as a vast physical logistics network to provide for easy importing and exporting. In Amsterdam, international businesses also benefit from national laws that encourage foreign investment and the relocation of highly skilled immigrants. You will also find support there in a number of organizations providing resources for growing businesses and startups.

5. Santiago

Businesses looking for a gateway to the South American market can find ample support in Santiago, Chile. Nearly a decade ago, Chile set out to make itself a hub for business in South America, and its business-friendly initiatives have made the country’s economy one of the fastest growing in South America.

Santiago, the largest city in the country, has a vibrant culture of entrepreneurs.

Businesses looking to locate and grow in Santiago are offered incentives and a light business tax structure.

Santiago also has a relatively low cost of doing business.

As you expand your business into the international marketplace, choosing the right region to expand into will be one of the most difficult decisions you make, involving detailed research. But here are some cities you should be looking at first in your research plan, due to their booming economies, access to the international markets and business-friendly policies.

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Responsibility for a product defect that results in injury lies with all the sellers of the product within the distribution chain. Generally, given regulations that manufacturers must comply with, a product is expected to meet the ordinary expectations of the consumer. When a product does not meet these expectations, manufacturers and sellers are vulnerable to legal action from consumers.

A product can be found liable by contract breach or by law. Where the issue of product liability cannot be answered by the contract or the governing laws, private international law must be deferred to in order to fill in the gaps.

Product liability tort covers lawsuits to settle claims of injury or dispute due to negligence or strict liability on the part of the manufacturer or those responsible for the product in question.

As a result, product liability standards have steadily increased in most parts of the world including Europe, Asia and North America.

As with other aspects of both public and private international law, there is a need to govern or harmonize disparate national laws and proceedings more uniformly with respect to product liability.

This includes evidentiary standards, uniform reward of damages and punitive actions.

Many governments have passed legislation to limit the occurrence of product liability. The following examples provide a brief description of some of the legislative measures implemented by various governments around the world.

1. U.S.

Most product liability laws are enacted at the state level and while they vary from state to state with regard to standards of proof, since the 1960s most are based on strict liability as opposed to proving the manufacturer’s negligence.

Under the theory of strict liability, the manufacturer, regardless of whether or not they caused the defect, is liable for a defective product and must pay or compensate the injured parties. There is no manufacturer liability cap to date.

2. EU

As of 1977, the EU also began to move toward the theory of strict liability to reinforce its commitment to a common market where all members have common laws. The 1981 preamble to the Treaty of the European Union states, “liability without fault on the part of the producer is the sole means of adequately solving the problem, peculiar to our age of increasing technicality, of a fair apportionment of the risks inherent in modern technological production”.

Recent EU Court of Justice rulings regarding risk in the absence of proof of physical injury with regards to cardiac pacemakers and defibrillators that belong to a defective series will impact product liability proceedings moving forward.

Signed in 1985 and implemented in 1988, the Product Liability Directive holds producers and manufacturers responsible for damages caused by product defects.

The legislation only applies to products put on the market from the time the directive was enacted. The Directive provides a 10 year statute, and caps manufacturer compensation (per defect) at EUR 70 million.

3. Australia

Replacing the common law principles of tort that had governed compensation due to loss or injury from product defects, Australia’s product liability law enacted in 1992, closely resembles the EU directive of strict liability.

There is a 20-year statute of limitation in the Australian law as well as directives for representative action to be taken by the Trade Practices Commission on behalf of consumers.

Interested in a broader look at the topic that also includes service development? Then the FITTskills Products & Services for a Global Market course is for you!

4. Taiwan

In 1994, Taiwan imposed a strict liability law to replace the existing negligence-based laws that required injured parties to prove the manufacturer was at fault or negligent.

5. Japan

Going into effect January 1, 1995, Japan’s Product Liability Law holds a manufacturer (which also includes the processor and importer) responsible for property damage or personal injury caused by a defect (here, defect means a lack of safety a product should normally provide) in a product.

Instead of strict liability, Japan’s legislation provides manufacturers with a defence on the grounds of not knowing about the defect when the product was sold. Japan also puts a claim limit of 3 years from the time of injury for injured parties to seek compensation. Similarly, manufacturers cannot be held responsible if it has been more than ten years since the product was delivered.

6. China

Quality legislation enacted in China’s 1993 Product Quality Control Law holds manufacturers, producers and importers responsible to uphold national and international standards for products and their packaging, and to see that unreasonable danger is not posed to people or property. If found liable, manufacturers are responsible for damages or injuries to people and property.

Like Japanese laws, China’s claims have time limitations and are defensible if the manufacturer did not put the product on the market, did not know about the defect at the time due to scientific or technical limitations or the defect was not present when the product was put on the market.

A major amendment of the Law on Protection of Consumer Rights and Interests entered into effect in March 2014—the first major development in the product liability regime since the implementation of the Law in 1994.

The Law puts in place new consumer-friendly provisions, reversing the burden on the consumer to prove non-conformity with quality warranties where such non-conformity is discovered within six months of receipt of the goods or services and conferring a right of return within seven days of consumers buying goods at a distance.

7. Hong Kong

The only product safety law in Hong Kong is the Toys and Children’s Product Safety Ordinance (1993), which states that reasonable safety is required for all toys manufactured, imported or supplied.

Manufacturers, importers and suppliers must ensure that general safety requirements are met according to one of a number of international toy standards (for example, the International Committee of Toy Industries’ Voluntary Toy Safety Standard).

While defensible, if found liable, enforcement and penalties start at a HKD 100,000 fine and a year in prison and grow with each subsequent offence.

The post 7 examples of how product liability laws change from country to country appeared first on Trade Ready.

On May 23, 2015, International Trade Minister Ed Fast and Hong Kong’s Secretary for Commerce and Economic Development Gregory So announced the conclusion of negotiations on a foreign investment promotion and protection agreement (FIPA) between the two countries.

The agreement is another step in making trade and investment easier for Canadians doing business in Hong Kong, considered a priority market under Canada’s Global Action Plan.

FIPA ensures fair treatment for investors and creates a more transparent business environment by setting out rules governing investment relations, dispute resolution and protection against discriminatory practices.

Strong Hong Kong-Canada ties

When you look at the statistics, it’s clear that Canada has strong ties with Hong Kong, economically, historically and culturally.

There are approximately 300,000 Canadian citizens living in Hong Kong, the second largest Canadian population outside of Canada, and over 500,000 people of Hong Kong descent living in Canada.

Canada and Hong Kong SAR share a “birthday”, both celebrating national holidays on July 1st, as well as historic ties with Britain.

Additionally, Canadians will find a lot of familiar faces in Hong Kong. All of Canada’s financial institutions already operate there, alongside recognizable multinationals like Air Canada, Manulife International, Sun Life Financial Asia, Delmar, Four Seasons Hotel and the Port of Montreal.

Canada’s Consul General in Hong Kong, Ian Burchett, said:

Hong Kong continues to play a strategic role as an effective and efficient super connector for Canadian companies looking to expand in mainland China and elsewhere in Asia.

Rich possibilites for Canadian SME’s

Hong Kong is a prime market for potential growth for Canadian investment, particularly in the financial services, agricultural products, processed food, transportation, communications technology, sustainable technologies, professional services and education sectors.

Currently, there are over 160 Canadian companies based in Hong Kong.

Canadian small and medium sized enterprises are realising the possibilities that the city has to offer – companies like Nanoleaf, the brainchild of three University of Toronto graduates. The company is lighting up the LED industry by producing the world’s most energy-efficient bulb.

Headquartered in Hong Kong with offices in Shenzhen and Toronto, Nanoleaf’s light bulbs are manufactured in Dongguan in China, meaning the team can make frequent visits to the Dongguan factory and keep an eye on quality control.

Hong Kong is truly an international hub for business and we can’t imagine choosing anywhere else to set up shop

Jonathan Tam, Nanoleaf’s Business Development Manager – Asia Pacific, said in an interview for the Hong Kong Trade Development Council (HKTDC) business information website, Hong Kong Means Business.

“The city has all the essential elements to become a high tech hub: proximity to China and its manufacturing/supply chains; rule of law to protect intellectual property; favourable taxation; a strong talent pool; favourable government resources; strong logistics hub and access to quality capital. We strive to be a global company with a global perspective, and being in Hong Kong is allowing us to achieve that vision.”

How Canadian companies can put their best foot forward in the Hong Kong market

Now that you know why Canadians should bring consider expanding to Hong Kong, here are three things the experts at HKTDC recommend any prospective business owner should do before entering the market.

1) Visit the city first. Experience Hong Kong’s thriving startup scene and talk to those who are here making it happen. Touch base with an outgoing and helpful business community that welcomes newcomers from all over the world.

2) Do your homework. Assess the market for opportunities and challenges related to your particularly industry or sector. A great way to do this is to keep an eye on the HKTDC’s business intelligence platform, which is particularly useful for small companies as much of the information is free. Check out https://research.hktdc.com/

3) Contact Invest Hong Kong. Those thinking of starting a business in Hong Kong should get in touch with Invest Hong Kong, which helps companies find a foothold in the city – Newcomers will be amazed at our easy it is. Go to https://www.investhk.gov.hk/index.html for more details.

Think Asia, Think Hong Kong event to bring Hong Kong networking opportunities to Canadians

To help set Canadian companies on the path to doing business in the region, HKTDC will stage the largest Hong Kong promotion in Canada, “Think Asia, Think Hong Kong” (TATHK), in Toronto on June 8.

TATHK is organised annually by the HKTDC around the world, and the promotion will gather business and political leaders from Hong Kong and Canada, with a view to lifting bilateral trade and investment between the two locations.

Some 1,500 Canadian business leaders, government officials and SME’s are expected to take part in TATHK

Hong Kong SAR Government Chief Executive C.Y. Leung is set to lead the mission, which aims to build contacts and promote the opportunities for Canadian companies to partner with Hong Kong counterparts and use Hong Kong as a springboard to markets in the Chinese mainland and throughout Asia.

More than 100 government and business leaders from Hong Kong and the Chinese mainland will be taking part in the promotion, which is supported by 16 Hong Kong partners as well as more than 80 supporting organisations in the US and Canada.

Thematic sessions will cover:

• Selling to China and throughout Asia
• Hong Kong: The Gateway for Chinese Outbound Investment
• Hong Kong – A Base for Technology Companies to Grow Their Asian Business
• RMB Internationalization.

For more information on TATHK, please go to: https://www.thinkasiathinkhk.com/2015/en/index.html

Are you thinking about expanding your business in Hong Kong?

If you’re going to the TATHK event, tweet @FITTnews when you are there and we will retweet your interesting shares.

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