Brexit Generates New Business Opportunities in 3 Major European Capitals

Francisco A. Laguna & Wojciech Kornacki

After our August break, today, we begin a series on Brexit.  This post focuses on potential opportunities in Europe resulting from Brexit.

Following the shocking and unexpected United Kingdom vote to exit the European Union, London is no longer considered the gateway to the European Union, and its future role in the European financial and technology markets is uncertain.  Many tech companies and international banks have begun exploring the possibility of moving to a capital on the continent to continue to enjoy the benefits of the Common European Market. This creates new business opportunities for companies seeking to re-establish certainty, cut costs and relocate to a European capital. Berlin, Warsaw and Paris each possess different qualities that make them attractive to these companies and institutions which are presently located in the UK.

Post-Brexit Aftershocks

 Right now, the UK has approximately 2 years to complete its negotiations to leave the European Union. Negotiations are expected to be very difficult, and the European Union has already made clear that it will not allow the UK to “cherry pick” only the best that the European Union has to offer. The UK’s financial sector, labor, farming and other sectors could be seriously affected by the negotiations. In order to avoid the uncertainty, some businesses have begun implementing the contingency plans to relocate to other European capitals.

Berlin

With its modern offices, low prices, and positive investment climate, Berlin seeks to replace London as the official gateway for tech companies to the European Union. Courtesy of http:// http://en.wikipedia.org

With its modern offices, low prices, and positive investment climate, Berlin seeks to replace London as the official gateway for tech companies to the European Union. Courtesy of http:// http://en.wikipedia.org

Berlin is actively seeking to replace London as a global center for financial technology. Berlin touts that it offers outstanding infrastructure and transportation capabilities, positive investment climate, substantial talent pool and office space that is cheaper than London’s. In addition, the Berlin-Brandenburg Metropolitan area alone has approximately 6 million residents from 180 nations, making it a perfect location for any international company.

As of 2015, Berlin surpassed London in venture capital investments.  It is ready to assume London’s role and be the next gateway to the European Union for tech companies and international banks. Berlin reported that it has already received numerous inquiries from many companies currently located in London.

Paris

Paris offers the largest business district in Europe that is only 3 hours away from Brussels. With its highly trained workforce and high quality life, many businesses seriously consider relocating to Paris. Courtesy of http:// http://en.wikipedia.org

Paris offers the largest business district in Europe that is only 3 hours away from Brussels. With its highly trained workforce and high quality life, many businesses seriously consider relocating to Paris. Courtesy of http:// http://en.wikipedia.org

Paris is located in the heart of the European Union and it is one of the top business destinations for some of the world’s largest international companies, offering some of the best research and development tax credits in Europe. The city also provides highly skilled professionals and a superior quality life right in the center of the European Union. Paris has already been running marketing campaigns to attract many companies currently located in the UK.

Warsaw

Many international companies that have already opened their branch offices in Warsaw are now considering whether they should establish their headquarters there. Warsaw offers an investor friendly environment with premium business locations at highly competitive prices, and with highly trained professionals. Courtesy of http:// http://en.wikipedia.org

Many international companies that have already opened their branch offices in Warsaw are now considering whether they should establish their headquarters there. Warsaw offers an investor friendly environment with premium business locations at highly competitive prices, and with highly trained professionals. Courtesy of http:// http://en.wikipedia.org

Warsaw is one of the fastest growing cities in the European Union. It already hosts many international banks and companies including the Google Campus Warsaw, opened in 2015. Warsaw’s scientific and information technology pool of professionals and innovators is well recognized around the world.

Warsaw is superbly positioned to attract many tech companies because of its business-friendly posture, low-cost modern office space and infrastructure and dynamic stock exchange. In addition to being well-positioned within the European Union, Warsaw also offers the potential to be the gateway to many countries bordering the European Union.

 

Next week, we continue our discussion of Brexit, talking about possible repercussions of the UK’s vote.

If you are interested in learning more about the Brexit, what it means for your business and the rest of the European Union, contact TransLegal or call 703-566-9427.

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United Nations Offers Countless Global Business Opportunities

Francisco A. Laguna & Wojciech Kornacki

Each year, the United Nations Organization (“UN”) spends billions of dollars to support various missions and development projects around the world.  This creates numerous and ongoing international business opportunities for entrepreneurs willing to understand and operate within the UN procurement system.  The last decade shows that UN spending is only going to increase.

United Nations Basics

The UN is an international organization consisting of 193 member states.  It is organized into approximately 30 different specialized agencies, funds and programs, and each entity has its own procurement needs.

One of the four U.N. headquarters located in New York City.  Recent additions include to the U.N. complex include DC-1 and DC-2 located in the center of the picture.  Courtesy of http:// http://en.wikipedia.org

One of the four U.N. headquarters located in New York City. Recent additions include to the U.N. complex include DC-1 and DC-2 located in the center of the picture. Courtesy of http:// http://en.wikipedia.org

The mission of the UN is to preserve international peace and security, promote human rights and disarmament, and to take action to address health and humanitarian emergencies, terrorism, climate change, and sustainable development, among others.  This is primarily done by humanitarian missions, peacekeeping operations and various development projects, all of which require billions of dollars in annual expenditures on services and supplies.  The UN and its entities operate around the world.  Its four headquarters are located in New York, Vienna, Geneva and Nairobi.

United Nations Procurement of Goods and Services

According to the 2014 Annual Statistical Report on United Nations Procurement, the overall procurement needs of the UN exceeded to $17 billion in 2014.  The United Nations Office for Project Services (“UNOPS”) reports that between 2004 and 2014, UN procurement needs increased by about $10 billion.  This shows that UN expenditures are likely to grow in the future.

UN humanitarian mission in progress. UN troops are securing an airdrop of supplies in Haiti.  In the wake of the 2010 earthquake, multiple cargo planes flew missions to deliver food and supplies to Haiti.  Several years later, the UN mission still continues in Haiti.   Courtesy of http:// http://en.wikipedia.org.

UN humanitarian mission in progress. UN troops are securing an airdrop of supplies in Haiti. In the wake of the 2010 earthquake, multiple cargo planes flew missions to deliver food and supplies to Haiti. Several years later, the UN mission still continues in Haiti. Courtesy of http:// http://en.wikipedia.org.

In 2014, the UN spent approximately 52 % of its total expenditures on services and 48 % on goods.  The three most active organizations with the greatest procurement needs were the UN Children’s Fund (“UNICEF”), the UN Procurement Division (“UN/PD”) and the UN World Food Programme (“WFP”)   The United States is the greatest supplier of goods and services to the UN covering approximately 9% of all of UN needs.  India, Afghanistan, Belgium, and Switzerland follow.  Currently, there is a movement within the UN to procure more goods from the developing countries.

UN procurement in developed and developing countries is different.  In the developed countries, UN entities primarily focus on procuring information technology and telecommunications, financial and insurance, testing equipment, motor vehicles and parts.  In the developing countries, the UN procures personal care goods, domestic appliances, educational equipment, fuels, humanitarian aid services, and rural development services.  It is important to note that each UN entity has its own specific needs in different countries.

UN Procurement Opportunities

The UN Procurement Division divides business opportunities into Expressions of Interests (“EOI”), Requests for Information, (“RFI”) and Tender Opening Schedule.  Expressions of Interests are company responses to UN planned solicitations.  Requests for Information allow the UN to assess vendor capabilities and assist companies in preparing them for the planned procurements.  Tender openings mean formal openings of sealed bids or proposals.  The first step in taking advantage of the opportunities is to register.

Being successful in UN procurement necessitates careful attention to detail and a clear understanding of the organization’s requirements. Call TransLegal with your questions concerning UN procurement opportunities.