100% stakes in companies in all but the most ratified sectors, such as banking and mining, which isn't true in most former Soviet bloc nations. That's why Coca Cola and giant insurer American International Group has outposts there (Fortune Small Business, 2000). Drawn by the lure of an authentic American experience, Estonians and Russians started coming in droves as word spread about the high quality of the food, which included a Tex-Mex cuisine, ballpark hot dogs, and pizza. Latimer's biggest mistake was in not aligning himself with an Estonian business partner. He figured that because he knew Finnish (close enough to Estonian so he could understand it) and had enough capital, he didn't need local help trying to garner bank financing. But as a cultural outsider, he misunderstood the business dynamic. So much of global business success depends on negotiating, selling and dealing with the local authorities. A local partner/consultant can help, but it has to be a bicultural local partner who understands what your desires are as well. Understanding this concept now after going through some "growing pains", Latimer has built a million dollar catering/restaurant enterprise in Estonia. By immersing himself into the Estonian culture, as well as taking some local partners, he has avoided any major trouble that has plagued other firms and starry-eyed entrepreneurs who has set up shop in the former Soviet bloc: employee theft, bribes, payoffs, dealing with self-proclaimed organized crime, etc (Fortune Small Business, 2000).Conclusion This discussion has highlighted but a few socio- and economic factors that must be considered when deciding to conduct business in a foreign country. As one can demise, the risks are there, but the potential for profit is very alluring. With prior proper planning, the risks can be limited. However, it will serve businesses well to incorporate economic factors into their overall global busin...
