Making Money On Your Mobile Home Investment

Manufactured homes may be the best-kept investment secret in real estate. While many investors struggle to raise funds and pay taxes for a single high-end property, manufactured home investors can make easy money and gain quick equity on a collection of homes. It’s also easier to plan ahead with manufactured homes since they’re less affected by changes in the economy than other real estate markets.

Investing in manufactured homes is relatively easy if you’ve got cash flow. The first step is overcoming any negative assumptions you may have about manufactured housing, whether you view it as poorly built, or simply too generic to warrant a long-term purchase. The fact is there is a big market for these homes, with buyers and renters waiting to enjoy the affordable, flexible lifestyle they afford. Manufactured and mobile homes also look a lot different than they used to – many have features like spacious patios and sun rooms areas that add style to daily living.

Many people also assume manufactured homes decrease in value over time, but this generally isn’t the case. A manufactured home may double in value over a decade like any other piece of real estate, especially if it comes with property. This brings us to another advantage: investors can maintain a valuable manufactured home property without the high costs and mortgages of a regular home. These homes can also be moved offsite or disassembled at a fraction of the cost of a regular house.

There are a variety of investment scenarios that can generate a high return in the manufactured home market. The easiest and fastest is to simply buy stock in a publicly traded manufactured housing company, or get involved in a real estate investment trust that specializes in manufactured homes. Another profitable option is to buy a manufactured home and rent it out. You won’t be able to charge as much to rent your mobile home as you would a regular house of the same size, but it won’t be that much less. For example, a $50K mobile home may rent for $600 a month while a $200K regular home rents at about $750 – you’ll be making a comparable return on investment for much less money up front, and smaller monthly mortgage payments. An obvious third investment scenario might be to buy a mobile home, live in it until the mortgage is paid off, and then sell it – in this scenario you’ll spend much less money on repairs and upgrades before the sale than you would with a regular home.

Another pleasant surprise of mobile home investing is how quickly the houses can be paid off. Smaller loans mean smaller interest charges, and faster equity in the home. That also means you can move on to your next real estate investment faster.

Learn more about mobile homes and Arizona retirement community living at Palmgardensonline.com The site has extensive information for buyers thinking of relocating to an Arizona 55+ community [http://palmgardensonline.com/about.php], and details on a variety of great mobile home and RV living options

Posted in Uncategorized | Comments Off

HOME Investment Partnership Program

In 1990, the Cranston-Gonzalez National Affordable Housing Act included provisions that created a new program for the U.S. Department of Housing and Urban Development (HUD). Called the HOME Investment Partnerships Program – HOME for short – it became, and has remained, HUD’s largest affordable housing Federal block grant program.

HOME provides Federal grants to governments at the state and local levels. Funding is used for a variety of activities aimed at improving affordable housing options for a region’s low- and moderate-income residents. Approximately $2 billion is awarded to government entities across the country every year. The funds are distributed as lines of credit, which are managed by HOME Investment Trust Funds. One Trust Fund is created for each state or local entity that is receives a grant.

A formula is used to determine funding levels for each state and municipality, and takes into account area poverty levels, existing affordable housing stock and its condition, employment opportunities, and the area’s overall financial health and stability. Allocations are no less than $3 million per state and $500,000 per city. Some areas do not meet the criteria required to receive funding, and are allowed to form consortiums with other municipalities so as to be eligible for direct grants. Alternatively, smaller communities can simply apply for funding from a larger municipality that has received a direct grant.

Grant recipients can use the money not only for direct funding of affordable housing-related projects, but also as security for larger loans, and for rental assistance programs. Other eligible activities include relocation assistance, property acquisition and rehabilitation, property demolition, rental and down payment assistance, and site preparation.

HOME regulations require that the majority of funding be used for low-income residents, those at or below 50 to 60 percent of the area median income (AMI). In addition, affordable units must remain so for at least 20 years.

According to HOME regulations, at least 15 percent of a government entity’s allocated funding must be set aside for Community Housing Development Organizations (CHDOs) – these are non-profit organizations whose primary focus is the creation of affordable housing. Additionally, 25 percent of HOME funds must be matched by each state and municipality, and can be provided in the form of donated property, materials or labor, bond issues or other financial proceeds.

The wide range of activities funded by the HOME Investment Partnership Program ensures that each community has the flexibility required to respond appropriately and efficiently to its unique housing and economic needs. Additional information about the HOME program, including a list of participating jurisdictions and their funding allocations, as well as compliance reports and checklists, are available via the Department of Housing and Urban Development’s web site.

Posted in Uncategorized | Comments Off

Mobile Home Investing

If you’re looking for a great way to make some extra money as a second income, or to find a way to earn a first income in this difficult economy, then you may want to give some consideration to mobile home investing. Though real estate investing can be a venture that makes many people nervous, this is not as true of investing in mobile homes as long as you educate yourself and know what you’re doing.

The key to making money through home investing is to be prepared to make the choices necessary to get as much cash out of a deal as possible. This may include making outlandish offers on manufactured homes that are for sale. In fact, many investors believe that if the first offer you make doesn’t turn your cheeks pink, then you’ve offered too much money. This can make the difference of thousands of dollars in profit when all is said and done.

There are some important tips when you’re looking at a potential mobile home investing opportunity. For example, the seller should always have title to a home that you will be buying. As mobile homes will generally have a title instead of a deed, you will want to make sure that the seller can provide that document in their name or you should simply continue on to the next opportunity.

Check into the placement of the home. Make sure that the land either comes with the home or that it can remain within the same community after the sale. Home investing becomes much more difficult when you are trying to sell a manufactured home that will need to be moved, since it is complex and costly to the buyer. Speak to the manager of the community to be sure that having the home remain will not be an issue.

The manager of the mobile home community will actually be able to help you in a number of ways. For example, if you want to know the honest history of a manufactured home, the manager will be able to let you know a great deal more than the manufactured home dealer or seller ever would.

Furthermore, you’ll want to make sure to remain accommodating to the community manager to stay on his or her good side. This is because without the manager’s approval and assistance, you will have a great deal more struggle with mobile home investing. Before you buy or sell a home get a Home Inspection first. http://www.manufactured-mobile-homes.com/mobilehomeinvesting.html

” Manufactured/MobileHomes Where Will You Call Home?” Manufactured homes, formerly known as mobile homes, have become a significant source of new and affordable housing. If you’re thinking of calling one home, then you’ve found an ideal resource in this website for information about these structures, as well as purchasing, lifestyle and maintenance, selling, and finding your own dream home.

Posted in Uncategorized | Comments Off

Mobile Home Investing – Why It Works

I’ve witnessed many real estate cycles over the 21 years I’ve been in real estate. The current real estate market is completely different from three years ago. As you may be experiencing, you have to work harder to find single family residences at wholesale prices. Your profit margins might be a bit tighter than they were too.

I travel throughout the United States and Canada, seeing many markets and trends. The current trend I am seeing is that major markets are experiencing price appreciation, low inventory levels, increased holding costs (taxes, insurance), and increasing rents for most site built homes. A trend that has occurred before, I believe is on its way again, is detached single family residences are becoming less affordable. When this happens, consumers look for alternative affordable housing options. These consumers will look to town homes, condos and even manufactured houses for more affordable housing options. So, if you are willing to make adjustments in your investment criteria to match this trend, you will be doing more deals and making more profit this year than last.

You might be saying, “I get the whole condo and townhome thing, but mobile homes… REALLY?” Well, let me help you see why. There are many markets where I have found that rents have jumped up so high that many people can’t afford to rent let alone buy. For instance, I’m in Houston, TX this week, where the rents range from $1,000 to $2,000 a month. I have seen this same trend in the markets where I have mobile homes in parks for sale. The people paying this kind of rent have started calling on our homes for sale. Why are they calling? We have manufactured homes in communities where the lot rent is $500 a month. If we rent the mobile home or manufactured home to them for $300 to $600 a month, they are paying less than the rents on an apartment in the same area with fewer square feet, bedrooms, and amenities. We have seen a growing trend in this direction. We get phone calls on a regular basis with people stating, “I would have never considered moving into a manufactured home before, but it is going to cost me less than my current apartment and I get more for my money”. We have become “THE” affordable housing option for these people.

But, there are not that many mobile homes out there… right? Wrong. Most people don’t realize that 10% of the housing units throughout the United States are manufactured homes. Do you see how many opportunities you’ve missed by not considering manufactured homes? Obviously, a place like Manhattan, NY is not going to have many opportunities, but you will find them in the outlying areas. In fact, I was just up in the Boston area. About 15 minutes out in Malden, MA, there were five mobile home parks in about a 10 mile radius of my hotel. The reality is that you will be surprised by how many mobile home parks are out there and the opportunities to profit from doing deals within them.

One way that I survived the frenzy during 2002 to 2006 was by focusing on the property types that other investors would not… a niche if you will. I would focus my attention on mobile homes on land, where the mobile home was noted on the tax records as an improvement, however the way the mobile home was set up on the land was not financeable via FHA. Therefore, the typical FHA buyer would not be able to get a loan on that property, so we would make the necessary repairs and put it on the market for sale. You will find that there are a lot of mobile homes on land that are considered real estate, but they are not FHA or VA financeable. It is another great way to locate property leads that most of your local competition will ignore. Less competition equals better and more deals for you this year. Ironically, they will be receiving the same calls as you for these leads, but they will not do anything with them or they will pass these onto you for free or a small fee.

If you are looking for an alternative investment strategy, consider mobile home investing. It’s a great way to have your dollars working for you with minimal risk. You can have more deals going at one time, due to the minimal cost associated with acquiring and repairing mobile homes. The small investment amount makes your cash on cash returns pretty amazing too. One huge bonus of mobile home investing, I was well prepared to run my first mobile home park when I finally took that leap in my real estate investing career.

Posted in Uncategorized | Comments Off

Sources of Finance – Second Home Investments

There’s a boom going on and it is towards continued investment in second homes. Of late second home purchases have represented a significant percentage of all homes sold in the developed western world. Of particular note are investment strategies in high-demand holiday or vacation areas and high growth investment locations. Investors are now considering their second homes as better investments than stocks, with many purchasers indicating they planned to buy additional properties within two years to grow their portfolio.

Financing for second home investments has become easier in recent years with financial institutions or lenders recognizing the pattern of property speculation and the need for second home loans to support these initiatives.

Landlords and Mortgages

When considering second home loans at a minimum the lender or financial service organization will want to see proof that you’re actually going to generate decent returns or cash flow from your investment. This will be considered to cover at minimum the majority of the costs or outgoings, but often the profits too. Often, the lender will ask for a business plan or statement of income for the property. You shouldn’t count on your bank taking into account your second home’s estimated rental income into consideration without a track record. You as the purchaser/owner may veer towards optimism, where the bank will veer towards pessimism. Even for a property with a long rental history most professional lenders will only consider 75% to 80% of the value for investment. So it is very important that you consider your sources of finance, the type of finance and the value of finance before you search for property.

There are a number of sources of funds for second home loans that may be considered by investors.

Equity release finance is one such source where mortgage property is used as collateral for additional property funds. In this instance the value of a current property that you own or part own is assessed to determine how much capital is available based on the outstanding mortgage and present value. An extension to your mortgage may then be granted to support new investment initiatives. The benefit of this finance is that it is often cheaper to finance when based on the original mortgage rate.

Second Mortgage finance or second mortgages are the way in which homeowners finance second home purchases. These funds may be used for down payments on 2nd homes, or for home improvements or extensions on primary homes. The benefit to this form of finance is that the finance is often associated with the original mortgage for security and subsequently is often cheaper.

The decision to use equity release investment funds with a mortgage refinance or to apply for a second mortgage for second home loans depends primarily on the needs of your investment and your ability to repay the new loan. If you have a low interest rate and favorable terms on your existing mortgage, you may want to consider a second mortgage for financing the down payment to purchase your investment property.

Posted in Uncategorized | Comments Off

The Unintended Consequences of Globalism

Globalism might be good for the world economy as a whole, but does not necessarily mean it has been good for the American worker. Whether intentional or unintended, the American worker has suffered through the philosophy of free trade. Do not miss quote me, Globalism has a lot of positives. Now more than ever the people of earth are connected through the internet and can communicate information faster than any other time in history. People are exposed to different cultures and ideas, and the free flow of information is exponentially evolving our society. “Free trade” plays a big part in globalism, which is why there has been a “backlash” from non-college educated workers in wealthy countries in direct response to the effects of free trade policies. When wealthy counties openly trade with developing countries it can overvalue the wealthy countries currency, which in turn makes imports cheaper while exports become more expensive. However, according to the Economic Policy Institute, the real culprit is not the valuation of the dollar and the increasing trade deficit. (Bivens, Economic Policy Institute)

The USA has increasingly shifted its economy from manufacturing to services like banking and investing. It is cheaper to import products of manufacturing from a country that has extremely cheap labor than it is to employ American workers in the United States. This in turn means there now is a premium on college educated Americans who are filling job openings within the service industry. On the other side of the coin, manufacturing jobs are leaving the country and lowering wages of workers without a college degree. This fact coupled with increasing technology that replaces workers and a trade policy that out prices “expensive” American workers is leading to decreased wages. As the US trades more with developing countries as a percentage of GDP, the wages of unskilled workers continue to decrease. (Slaughter and Swagle, International Monetary Fund)

Though Globalism has a net increase in GDP and employment for countries involved, most of the gains from free trade is disproportionately received by the top 1% of Americans. Policies that protect corporations and their interest at the expense of the American worker exacerbate the problem. Trade policies like NAFTA and others have little protections for workers and heavily favor the multinational corporations that seek to benefit from free trade. This only adds fuel to income inequality, which for poor countries can increase economic growth while having a negative effect on rich countries. Rich countries are also at higher risk of financial crisis when they have high levels of income inequality. (Malinen, Huffington Post)

Globalism and free trade are linked very close together, which is why there is a stigma attributed to the word. There has been growing resentment within the US and other wealthy nations of globalism as a whole. They do not just condemn free trade, but openly blame minorities and marginalized groups for their decrease in wages and “eroding” their cultural dominance that they claim dominion over. This is a deadly cycle, as income inequality only feeds this type of behavior. In a country that is not adequately educating its people, more of the workers within its country will become more ignorant. With free trade putting a premium on college educated workers and decreasing wages of unskilled labor, we are now almost at a tipping point, socially and economically.

Globalism has many unintended consequences that inadvertently caused huge social and economic problems within the US. The problems that globalism is causing is not a hard fix. Reducing the income inequality will eradicate more of the negative effects of globalism. Universal Education, Universal healthcare, and a rewrite of our tax code are just a few ways to reduce income inequality. All of these possibilities are well within our means. We have to take care of these problems swiftly, before globalism becomes an integral part of our own decline. (Mason, Post-Gazette)

Bivens, Josh. “Using Standard Models to Benchmark the Costs of Globalization for American Workers without a College Degree.” Economic Policy Institute. N.p., 22 Mar. 2016. Web. 25 Apr. 2017.

Malinen, Tuomas. “The Economic Consequences of Income Inequality.” The Huffington Post. TheHuffingtonPost.com, 17 Dec. 2015. Web. 25 Apr. 2017.

Mason, Bob. “Single-payer Health Care Would Help to Treat Three Separate Threats.” Pittsburgh Post-Gazette. N.p., 26 Oct. 2014. Web. 25 Apr. 2017.

Slaughter, Matthew, and Phillip Swagel. “Economic Issues 11–Does Globalization Lower Wages and Export Jobs?” International Monetary Fund. Imf.org, Sept. 1997. Web. 25 Apr. 2017.

Posted in Uncategorized | Comments Off

Global Trends in the Cosmetic Industry

Cosmetic dyes and colours: Explained

Cosmetic colours are also known as cosmetic lakes. These colours are produced by taking the help of absorption of dyes that are water-soluble onto a substrate. It makes the colour insoluble in water. Cosmetic lake colours are made by making use of unique technology. The technology helps in attaining extremely fine particles. These particles help in achieving shade consistency. In comparison water soluble colours, cosmetic lakes are much more stable & safe. They also generate vivacious and brighter colours. It has been seen that cosmetic pigments and lakes are more suitable for food products that contain fats and oils. They are also suitable for those products that do not contain enough moisture for dissolving colours.

Cosmetic dyes, on the other hand are used for making cosmetic colours & products. These dyes are widely used by the cosmetic manufacturing industries and businesses all over the world. They are primarily used for manufacturing hair dyes, lipsticks, nail polishes, shampoo as well as other personal care products. It has been seen that generally water soluble & food dyes are very easy and safe to use. These dyes are mostly used for a wide variety of applications. They include cleaning chemicals, soaps, medicine, cosmetic products etc.

Know which ones are safe for use

Be it the use of any type of cosmetic dyes or cosmetic colorants safety of use is a primary consideration. Cosmetic colours and cosmetic dyes often make use of a wide range of synthetic colours. These are often referred to as FD&C colours. They are mainly extracted through coal tar and are basically a by-product of petroleum. Research shows that some particular coal tar based dyes lead to different types of cancer. This is why the FDA regulates them. They also determine the arsenic or lead amount they contain. Thus there are many restrictions in the use of such colours.

Some global trends in Cosmetic dyes and cosmetic colours

Worldwide it is seen that North America, followed by Europe, has the largest market for colour cosmetics. This is due to innovations in colour cosmetics. Other factors also include high consumer disposable income and frequent new product launches in colour cosmetic market in the region. However Asia too is expected to show high growth rate in the colour cosmetics market in next few years. This is on account of the increasing consumer incomes and rising in awareness about personal care products in the region.

Posted in Uncategorized | Comments Off

Economic Turmoil and the Future of Brazil

For many years, Brazil has been an emerging economic hub, attracting investors from all over the world. The Brazilian economy saw an 368% increase in Gross Domestic Product growth from 2003 to 2011. In addition, Brazil took in almost half of Foreign Direct Investment flowing into South America during 2015. This doesn’t come as a surprise since it reigns as one of the major emerging national economies. However, Brazil has seen a recent economic downturn with increasing unemployment and a contracting GDP. In fact, the Brazilian government cut 2017 GDP expectations from 1.6% to 1% growth. Having been one the most lucrative foreign investments for governments to individual investors, what happened to the so-called “Country of the Future” and can Brazil regain its momentum?

Back in 2015, recession hit Brazil hard and the country is still struggling to get back on track. According to the CIA World Factbook, the economy contracted 32% from its peak in 2011 and unemployment reached a new high at 12.6% in 2016. Being based mostly on services, agriculture and oil, Brazil’s economy has a direct correlation with global demand. With global recession looming, Brazil is feeling the effects of a slow world economy.

Brazil is a top tourist destination offering beautiful beaches, a diverse culture and exciting festivals. However, with the world economy slowing down, people are less likely to travel abroad. Since the majority of the country’s GDP derives from the service industry, Brazil will not be able to rebound any time soon unless there is a major boost in consumer confidence.

The demand for Brazilian exports was slashed when its largest trading partner, China, entered into an economic slowdown of their own. The decrease in exports caused massive layoffs throughout the nation. The notorious economic downward spiral began by wary consumer spending as unemployment rose. Companies that tried to gain capital by borrowing in U.S. dollars found it difficult to pay back those loans as the Brazilian Real crashed 25% in the span of a year in 2015.

One of the major hits came from low oil prices and the corruption of Petrobras, a large oil company and Brazil’s largest source of investment. Brazil is major producer of oil, exporting $11.8 billion worth in 2015, according to the Observatory for Economic Complexity. OPEC delivered a major blow when the cartel decided not to cut oil production, causing oil futures prices to plunge. In order to cope with heavy losses, Petrobras was forced to sell off assets and halt future research and expansion plans.

As if things weren’t going poorly, Petrobras was also caught in a scandal with former Brazilian president Dilma Rousseff and other high office executives. From 2004 to 2012, the company had spent over $2 billion on bribes to politicians whom would allow the company to charge inflated prices for construction contracts. Now that the scandal has unfolded, Petrobras executives face jail time and the company as a whole is forced to pay billions in fines.

So what does the future hold for Brazil?

Although at the moment the future looks dim, there are still signs of hope Brazil can turn itself around. The Real has seemed to stabilize in 2016 and heads into 2017 with an upward trend. Moreover, experts’ GDP projections for 2018 through 2020 show promising figures that Brazil can restore pre-recession level growth.

Even more promising, U.S. companies are still showing faith in Brazil’s future. American Airlines plans to invest $100 million in an aircraft maintenance center in Sao Paulo. Brazilian Investment Partnership Minister Wellington Moreira Franco and many countries like the United States, United Kingdom, France and Japan agree there are still reasons to invest in Brazil. This should be seen as a sign of confidence that the Brazilian market will grow soundly with the support of both national and international investment.

Posted in Uncategorized | Comments Off

The Effects Of The Global Trade Agreement

We live in a world that is increasingly getting connected. In such a world, trade agreements are bound to expand internationally, and to think and act otherwise would be downright stupid.

These global trade agreements, as such, are either bilateral or multilateral understanding between two or multiple countries and govern the trade policies between them. These agreements have a massive impact on worldwide trade and investments and are one of the major causes responsible for shaping business relationships across the globe. And while such agreements might not affect directly affect the place where you live or operate, being aware of the current trade agreements can definitely uncover numerous opportunities.

Forming up opinions is up to you; we do not intend to initiate an argument over how good or how bad these global trade agreements are. This article aims to get you familiarized with such agreements and tell if your supply chain could be affected or not.

While a few countries have settled upon free trade agreements and are in the process of widening them, a number of other nations have formed common markets and unions; this form of development can a have a thorough effect on small-scale businesses.

Two of the most common agreements are the Trans-Pacific Partnership (TPP) between Australia, New Zealand, Singapore, Canada, Brunei, Peru, Mexico, Chile, Malaysia and Japan, and the North American Free Trade Agreement (NAFTA) between Canada, United States and Mexico.

Now, how such agreements impact your local business’s supply chain depends on a simple fact; whether your business is an importer, exporter or neither.

Scenario 1: You neither import nor export

It’s fairly easy to decide whether you are an importer or not, right? I understand that you do not directly source products from a foreign supplier, and technically speaking, that doesn’t make you an importer. However, trade agreements can still impact you. Your suppliers are directly affected by such regulations, and this vulnerability can affect your supply chain.

Keep the distinction in mind.

Scenario 2: You identify yourself as an importer

Owing to the low cost manufacturing in some countries, many small scale suppliers are able to compete with global giants.

With a trade agreement between two countries, most of the times, the country with lower labour costs benefits when the trade tariffs are lowered or eliminated. With trade agreements, importers usually get to source low-cost goods and it allows for the unrestricted movement of such low-cost goods through higher cost partner nation.

In case, such an agreement is dissolved, an importer would inevitably face a higher cost of goods and thus look for cheaper sourcing options, decrease their operational costs, and ultimately increase the prices, which would be borne by the customers, of course.

Scenario 3: You are an exporter

This even counts if you sell products that another firm exports because at some point or other, taxes would be levied on your sold goods. So how does it affect you? Your customers end up paying higher amounts for your products.

With a trade agreement in place between the country where the product originates and the receiving country, the very same products would move through the receiving nation freely. In such cases, you’d definitely want to keep such an agreement intact and leverage this competitive advantage you have in this particular country bound by trade regulations.

As a small or a medium sized business, it is therefore important for you to identify where your business lies with respect to global trade agreements.

Posted in Uncategorized | Comments Off

The Paramounted Importance of Critical Analysis in International Trade Policies

International trade is largely based on the constant fluctuations in the world-wide economy, this resulting in constant changes with regards to tariffs, trade subsidies and unending amendments of regulations with regards to international trade. “Trade policy and economic Growth”, a paper by Keith Maskus, PhD, focuses on the relationship between trade policies and the growth of the economy or lack thereof, the main point of interest of the paper was to establish whether the variance of trade policies will affect the economic growth of any country. The conclusion reached was that open economies tend to grow faster than closed economies, ceteris paribus. therefore concluding that open competition is good in the sense that it improves resource distribution and the country gains in Investment and innovation.

An organisation that is involved in international trade has to pay special attention to such information. There might not be any countries with closed economies however there are countries that have low imports to the point that they are regarded as closed economies for instance Brazil. In 2011 Brazil recorded 13% as its import percentage which was quite low for a country of its stature. Is it not then imperative to constantly be up to date with changes in the trade policies of countries one is interested in pursuing trade relations with? since there is a proven positive relationship between the openness of an economy to competition (thus meaning the country is greatly involved in trade) and the growth of that country`s economy, this serves as an indication of how lucrative and profitable a business venture would be under such circumstances. The Critical analysis aspect then comes into play by determining how much gain or loss would result from substantial changes to the policies, which are measures and instruments that can influence export and imports, the objective being the policies influence the trade sector to the result of profit for the business venture. one might feel a degree in commercial management is then needed in order to fully understand all the kinks and edges of the international business, and they would be right, but the eventuality is that it will always boil down to intelligence and efficiency in the analysis of trends, calculation of potential profit/loss, predictions of future stability or fluctuations in the world economy prompting changes to prices in the trade sector.

There is one other important factor that can alter potential business plans, and that is the politics of the country in question, policies are easily influenced by the politics of the nation, and it is thus advisable that critical analysis be also engaged, this results in better understanding of the country and its stability thus reducing the chances of incurring a bad business eventuality. Nations are not governed by robots, unfortunately, but are governed by people with interests and human nature desires to differ from individual to individual making it difficult to maintain a constant effective system. if politicians are elected they tend to focus on altering policies for their own benefit, and the benefit of those they promised (if there are still honest politician available) from that point it is important that international business consider such factors before pursuing business. Prime examples being, whenever there are strikes in South Africa investors tend to shy away, and most of the strikes are birthed from political influence, thus deeming South Africa an Unstable nation to invest in, or Zimbabwe a nation sanctioned, due to political infringements, making the country undesirable for investment irregardless of the profitability of the business idea. It is thus an excellent idea to firstly research in-depth to the politics of the country before hand and invest with,much-needed information, guiding the innovative decision made.

Posted in Uncategorized | Comments Off