Business 1 Template

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The Global Market is in Your Backyard Can You
Compete?
Presentation by Roseann Farrow, CIPS
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WELCOME !

• ACCUEIL

BENVENUTO
BIENVENIDA
Het welkom
mottakelse
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EMPFANG
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Did You Know in 2010

• 82 billion in US residential property was sold
  to foreign buyers from 70 different countries?
• 62 of these sales were all cash?
• foreign buyers paid 97,000 more than the US
  national median price? (315,000 v 218,000)
• 5 billion was paid in real estate commissions?
• What are you doing to take advantage of it?
• (Source The 2011 NAR Profile of International
  Home Buying Activity.)

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• With the influx of global companies and new
  technology coming to our regions, we must
• embrace and celebrate diversity
• to sustain and compete. 
• Lets take a look at some critical tips and
• techniques about intercultural communication,
• business practices, customs and behaviors.

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Global Means More than Foreign
for example in my state, New York, consider
this

• 22 of New York residents are foreign born.
• Foreign-born New Yorkers account for
• 22 of the states home ownership.
• 30 of New York households speak a
• non-English language.
• (Source NY Business Data for International RE
  Transactions 2010)

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NY Immigration/Naturalization Patterns More than
Meets the Eye

• Roughly 90,000 new immigrants in 2008.
• 15 from Dominican Republic.
• 30 (3,100-6,000 each) from Jamaica, China,
  Guyana, Ecuador, India, Haiti

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Your Challenge

• Compile this kind of data about YOUR state!
• NAR Research (www.realtor.org/global)
• Your state and local websites
• Other sources?
• Census.gov so much info!!
• Example Foreign languages spoken by your
  residents

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In the USA 20 of Americans speak a language
OTHER THAN ENGLISH at home!

• Spanish 34.5 million
• Chinese 2.5 million
• Five other languages have at least 1 million
  speakers
• Tagalog 1.5 million
• French 1.4 million
• Vietnamese 1.2 million
• German 1.1 million
• Korean 1.1 million
• (Source Census.gov - 2007 American Community
  Survey)

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In fact.

• The US population
• speaking a language
• other than English at home
• increased by
• 140 percent in the past three decades!

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Incredible, exponential growth!

• The number of people 5 and older who spoke a
  language other than English at home has more than
  doubled in the last three decades and at a pace
  four times greater than the nation's population
  growth over a time period from 1980 2007. In
  that time frame, the percentage of speakers of
  non-English languages grew by 140 percent while
  the nation's overall population grew by 34
  percent.
• (Source Census.gov - 2007 American Community
  Survey)

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Yes, Virginia the world is flat!

• This is known as Globalization!

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Factors Promoting Globalization

• Unrestricted boundaries for capital flow and
  investment
• Round-the-clock financial markets
• New alliances and agreements

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Factors Promoting Globalization
USA - brainpower

• Economic specialization
• Floating currency exchange rates
• Increased demand/population growth

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real estate!
. and then theres
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Everybody Loves our Real Estate!

• The USA provides healthy returns on investments.
• The USA provides a safe haven for many foreign
  investors.
• Few barriers to foreign individuals or entities
  investing in the USA.

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Everybody Loves our Real Estate!

• US markets welcome foreigners.
• Foreign capital contributes to our nations
  health by putting a downward pressure on long
  term interest rates.
• 70 of immigrants own their own home!

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Why Buy American?

• Two major criteria drive inbound
• international home ownership
• Proximity to home country.
• Convenience of air transportation.

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Some data from NAR
2011 Profile of International Home Buying
Activity Purchases of U.S. Real Estate by
International Clients for the 12-Month Period
Ending March 2011 NATIONAL ASSOCIATION OF
REALTORS
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Property Types
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Intended Use
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Whos Buying .. by Region
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Whos Buying .. By Country
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Where Are They Buying?
Florida, California, Texas, and Arizona 58 of
sales
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Do Your Own Research!

• Who are the foreign buyers and sellers in your
  market?
• Where are they from?
• What language do they speak at home?
• What do they buy?
• Glocal market clues are all around!

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Certified International Property Specialist
www.realtor.org/global
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Building Relationships

• In international real estate,
• if there is no relationship,
• there is no business!

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Learn about .

• Language
• Religion
• Social structure
• Values, customs, and attitudes
• Historical predispositions
• Stereotypes and prejudices

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Are you ready for the QUIZ?!?
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True or FalseSaudi Arabians dont eat lobsters.
Question 1
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TrueMuslims do not eat animals that scavenge
such as lobsters, pigs and goats.
Answer
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In what order do the 7 courses in a formal French
dinner arrive?A) Soup, Salad, Meat or Fowl,
Sorbet, Fish, Dessert Coffee.B) Soup, Fish,
Sorbet, Meat or Fowl, Salad, Dessert Coffee
Question 2
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B) Soup, Fish, Sorbet, Meat or Fowl, Salad,
Dessert Coffee
Answer
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MATCH GAME
Question 3

• Mexico
• Oman
• England
• Scotland

• Kidney Pie
• Haggis
• Grasshoppers
• Sheeps Eyes

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MATCH GAME
Answer

• Kidney Pie
• Haggis
• Grasshoppers
• Sheeps Eyes

• England
• Scotland
• Mexico
• Oman

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Question 4

• True or False
• Dinner reservations in Spain
• are generally for 8 PM.

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Answer

• False
• Dinner reservations in Spain
• are generally for 10 PM.

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Question 5

• True or False
• Since flowers are universal, the giving of
  flowers is a safe bet for a nice gift in any
  culture.

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Answer

• False
• Be wary about giving flowers anywhere. In some
  Scandinavian countries, white roses are
  associated with mourning while purple blooms are
  in many Latin American nations. In France, white
  lilies and chrysanthemums are signs of death. And
  in Latvia, funeral flowers are red.

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Question 6

• True or False
• The Chinese are impressed
• by the gift of a clock
• in business transactions.

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Answer

• False
• In China clocks are a symbol of death.

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Question 7

• True or False
• In Japan, repeatedly tapping ones finger on the
  table
• signifies agreement and support of the speakers
  statement.

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Answer

• True
• This type of mini-applause reportedly was
  started
• in one of the courts of a Japanese emperor.

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Question 8

• Which is larger-
• A square foot or a square meter?

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Answer

• A Square Meter
• One square meter 10.7639 square feet

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Question 9

• Which is larger-
• An acre or a hectare?

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Answer

• A Hectare
• 1 hectare 2.471 acres

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Question 10

• In the UK, a savings loan is known as a
• Savings Loan
• Bank
• Building Society

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Answer

• c) Building Society

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Question 11

• True or False
• In Mexico a notario is comparable to the USAs
  notary public.

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Answer

• False
• A notario in Mexico conducts title searches,
  registers property titles, assures that taxes are
  paid, and must hold a law degree and
• be appointed by the state governor.
• (In Germany a notar draws the contract and
  applies for the title registry.)

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Question 12

• True or False
• Many cultures consider a real estate contract a
  beginning of the negotiation of the details of
  the transaction.

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Answer

• True
• Many foreign clients consider the commonly used
  fill-in-the-blank boilerplate contract as cursory
  and unbinding.
• Furthermore, in the UK gazumping is an accepted
  practice!

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• Did You Pass?

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Adapting to Cultural Differences

• It is the real estate professionals
  responsibility to research the culture and
  current business practices.

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Culture Can Affect the Process
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By Morrison Conway

• www.getcustoms.com

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By Roger E. Axtell
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Certified International Property Specialist
www.realtor.org/global
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Citizenship

• I am not an
• Athenian or a Greek, but a
• citizen of the world.
• Socrates
• (469-399 BC)

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Personal Commitment

• I learned / was reminded of
•  
• I will

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QUESTIONS?
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Thank You!
Goodbye!
Sayonara
Auf wiedersehen
Au revoir
Adiós