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In today’s globalized business environment, entering a new market or starting a business abroad calls for a rigorous strategy and a firm knowledge of local and international conditions.

This is especially the case as globalization involves numerous business lines that are vulnerable to volatile affairs such as political and socio economic issues. The recent pandemic and the Russia-Ukraine war are just some of the events that prompted a notable change in some aspects of global economies.

Businesses are compelled to be prepared for the opportunities and challenges in the following year ahead. Here are the top five market entry trends to look out for in 2023.

Top 5 market entry trends for 2023

Emerging markets

Though there is no official definition for the term “emerging markets,” the International Monetary Fund (IMF) described it as those who have achieved “remarkable progress in strengthening their macroeconomic policies since the turn of the century, which helped them more than double per capita incomes on average.”

With the current globalized business ecosystem, market participants are incentivised to drive their innovation efforts in emerging markets. Moreover, collaboration with enterprises and government units can be expected. For instance, governments in emerging markets assertively push and invest in the use of automation in local firms to drive their competitive advantage.
However, amidst the global inflation is seen to continue well into 2023, existing and entering businesses are likely to face rising costs.

Digital transformation

In recent years, digital transformation in business functions has augmented efficiency in areas such as transparency and compliance, to name a few. In our recent blog, we discussed Regulatory Technology (RegTech), automation in compliance checks and perpetual Know Your Customer (KYC) processes, which all involve the integration of digitalised solutions for compliance.

The pandemic brought about many changes in an organization’s work setup. Aside from the shift in a work setting, which will be discussed in the latter part of this article, the digitalisation of work processes has also emerged. With this, businesses will need to ensure that the right technological tools and talent are available for the organization to effectively integrate digital transformation into day-to-day and specialized business functions.

Moreover, market entrants will also need to prepare themselves for the risks associated with doing so. Digital security is a top concern in going digital, especially when dealing with various data and clients.

Sustainability and ESG

The concept of sustainability and the Environmental, Social, and Governance (ESG) framework are recurring themes within the business ecosystem. Both are previously mentioned in blogs discussing the anticipated trends for 2023 in family offices, fund administration and private equity.

Sustainability and ESG in market entry are no different. A report by Capgemini Research Institute found that eight out of ten consumers base their purchase decisions on sustainability. Moreover, 77 percent of the 7,500 consumers surveyed expressed concerns about an organization’s treatment of its workers.
The International Sustainability Standards Board (ISSB) was specifically created to carry out a global baseline of sustainability-focused disclosure standards. The board will assist in helping capital market players evaluate enterprise value and risks associated with ESG.

With investors and consumers placing much value on these concepts in their investments and purchasing decisions, organizations are compelled to align and position their business strategies accordingly. In addition, companies are urged to be mindful of their operations and how they affect both their internal and external stakeholders.

However, it is important to note that maximizing the value creation from sustainability comes with responsibility and commitment from the organization. A McKinsey survey) that the companies that have effectively created value from their sustainability programs manage this business area with the same dedication and discipline as with their other business initiatives.

Amplified regulatory environment

In prior years, the regulatory environment has become more stringent as several aggressive actions in policy making and enforcing regulations were made.

For instance, the United States Securities and Exchange Commission (SEC) reported that it had filed 760 enforcement actions in 2022, documenting a nine per cent increase from the previous year. According to Division of Enforcement Director Gurbir Grewal, “the Enforcement Division is working with a sense of urgency to protect investors, hold wrongdoers accountable and deter future misconduct in our financial markets.”

Market entrants have to keep track of compliance risks that may occur in various aspects of businesses such as digital assets, personal data, cybersecurity and reporting requirements, to name a few.

Those planning to start a business abroad should be mindful of the rules and regulations applicable to the country’s local and regional business environment, the industry that will be entered and the type of business to be launched, among many other factors.

Adjustments in work setup

Over the past years, the flexibility provided by the remote and hybrid work setup became a significant factor in the employment decisions of employees. This trend is seen to continue in 2023 and beyond.

In a 2022 U.S. survey by the Pew Research Center, 78 percent of the respondents that were working from home most at the time of the survey or all the time conveyed their preference for continuing their current work setup even after the pandemic. This figure indicated an increase from 2020’s 64 per cent.
In addition, flexible hours and shortened workweeks also became a sought-after aspect for employees and will continue to do so in the years to come.

With this, market entrants are encouraged to adapt and accommodate such changes in the work setup moving forward. With the right policies in place, organizations may still ensure employee productivity even without the traditional work conventions.
Moving into a new market in 2023 can be challenging, especially with external factors that can be hard to control. However, having the right market entry strategies and team to support your business functions can help position your business on the path to success…

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Offline maps are undoubtedly an important travel assistant. The main thing is not to forget to download the necessary regions in advance.

📍Organic Maps is the spiritual successor of Maps.me, it uses the principle of “Wikipedia”: users mark interesting places. Android, iOS

📍Google Maps - automatically loads part of the terrain that you are constantly browsing. You can manually select a section of the map to download. Android, iOS)

📍Yandex Maps - accurately builds routes in the city, on highways and in the woods. Without the Internet you can not choose an alternative route. Android, iOS

📍2GIS - available in cities of Russia and some CIS countries, as well as in some European cities and the UAE Android, iOS

📍Guru Maps - displays in detail the terrain in places far from the cities. You can build routes for hiking or trophy-raiding in the bogs Android, iOS

📍Polaris - maps dangerous and off-road routes: builds a path off the tracks and in the snow Android, iOS

📍Gaia GPS - maps with ready-made hiking and biking routes. There’s a weather forecast and a “breadcrumb” feature - it’s easier to find your way back Android, iOS

📍Topo Maps - topographic maps for hiking and hunting. Shows hiking routes, tracks the path you’ve traveled, sends a notification when you’re approaching an interesting location. iOS)

📍MapOut - paid maps for hikers and cyclists (iOS).

📍Maps n Trax - you can download a map you took a picture of on your smartphone iOS.

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Most of the rules of the flight are set by airlines themselves. But there are a few points that almost all carriers follow.

• Children do not always have to pay for the flight. Usually you can get tickets without a seat for free or buy them at a big discount. As a rule, a child under 2 years without a seat flies free of charge within Russia and with a discount of 90% off the adult fare - abroad. If the child flies with a seat, the ticket is paid at the price of a flight for children under 12 years old.

• Children under 12 years old receive a discount. It applies to the fare, not to extra fees and taxes. If the discount is 25% of the price of an adult ticket, it will be 15-20% in monetary terms, depending on the amount of fees and taxes.

• Children under 12 years of age may not fly without an adult. Children under 2 years of age and children with disabilities travel only when accompanied by an adult.

• Baby food may be taken in the cabin; it is not usually included in hand luggage allowance. Each airline company independently determines the dimensions of the baby carriage and the amount of baby food - it is best to clarify the rules before your flight, so that you are not faced with unexpected restrictions at the airport.

• The baby carriage must be checked in at the counter at the airport and receive a luggage tag. It is then checked in free of charge, and in many cases you can check it in the aircraft. If the baby carriage is folded to the maximum permitted dimensions for hand luggage, it may be taken on board free of charge.

• Passengers with children may not sit at the emergency exit. It is prohibited by the safety rules of all airlines: in an emergency situation, the parent will save the child, not help other passengers to get out.

• A child under 2 years of age may or may not be given an extra child safety belt by the parents. It all depends on the airlines’ rules.

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Very often when traveling you just need a car. Many places you want to visit are not accessible by cab or public transport.

🔷 Choose well-known car rental chains

The big chains allow you to pre-book the right car online, and you’re less likely to run into a scam or a dead car. Of course, such international companies are not everywhere. In that case you will have to choose from what you have and go to the local rental offices. But be vigilant and carefully study everything you sign!

The only disadvantage is that there may be problems with payment by card. Some car rental companies only accept credit cards. But in any case take cash with you. They may come in handy for a deposit.

🔷 Make a video before picking up the car

Never neglect this advice. Unscrupulous companies can write off damage that was actually done by someone else before you. Pay attention to all scratches, even small ones, and point them out to the manager when signing the contract.

🔷 Study the technical specifications of the car

They will definitely tell you what to fill up at the rental place, but it is better to study the main technical characteristics of the car, so you know what you are dealing with and do not get into trouble, for example, when breaking down.

🔷 Carefully read the contract and the act

An unscrupulous hirer may put unnecessary clauses in the contract, such as: a mandatory wash after the rental is over, which will cost a lot more than in regular car washes. Your contract is your protection in case of any problems, so it’s worth studying it from start to finish.

🔷 Take out insurance.

Car rental companies often offer a full insurance policy in case of an accident. If your budget allows, insurance will be good for you.

🔷 Learn the country’s rules of the road.

All rental companies take a car deposit in case they receive fines. In many countries the fines are much higher than in Russia, so you should definitely not violate traffic rules - you will save money and nerves.

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Unskilled workers earn between $1,600 and $2,000 a month, the average wage is $3,500, and above average incomes are $7,500 to $8,500.

However, the cost of basic necessities such as food and clothing can be very high, as can the prices of water and electricity.

🔸 Renting an apartment in Dubai
Monthly rent for a studio can be around $1,000. In more upscale areas, studio rental prices can already reach the $2,500-3,000 mark. However, it is much cheaper to rent an apartment in Ajman - for 600-800 dollars.

🔸 Utility payments.
A studio dweller per month will pay about $70 for utilities. For two people, you will need to allocate at least $120-150 for these purposes. In addition, you need to pay a monthly 5% housing fee of the rent amount. You will need to pay another $100 for home internet.

🔸 Groceries.
There are two types of grocery supermarkets in the UAE: some for locals and others for tourists, and they have different prices. Deira is an area of Dubai, mostly populated by emigrants with small salaries, and the cheapest grocery stores are located here.

Milk - $1 per liter; Chicken (breast) - $3; Butter (400-gram pack) - $4; White bread (loaf) - $1; Potatoes (1 kg) - $1; Chicken carcass - $3-4; Sour cream (200-gram pack) - $3.

🔸 Cafes and restaurants.
In the center of the capital: you’ll have to pay $8 for a sandwich, a cup of coffee costs about $7, and dessert is $10 to $15. A bun to go with the coffee will cost a little less. If two people eat dinner or lunch at a cafe and order three courses, they spend on average 200 to 300 dirhams ($50 to $80).

🔸 Clothing.
If you like to haggle and buy items at a lower price, you should head to the Karama clothing market. Here you can buy a T-shirt for a hundred rubles, a sweater in the range of 300 rubles, and jeans, which cost no more than 550 rubles. In large shopping centers there is a wide range of goods for all tastes and wallets. Goods are often divided into floors according to price categories.

🔸 Public transport
The price of a subway ride depends on the distance. A bus ticket costs 100 rubles, and you can also buy monthly passes there.

🔸 Mobile communications
There are two main mobile operators in the UAE, Etisalat and Du. The cost of a SIM card from the first operator is 40 dollars, from the second - 15 dollars. The cost of an outgoing call within the country is $0.2 per minute, and a call abroad is $1 per minute.

🔸 Entertainment and Sports
A visit to a gym or fitness center will cost you from 7000 rubles per month, and for skaters you will have to pay about 1000 rubles. The cost of a tour in Dubai on average is about 3700 rubles, but a visit to the famous Burj Khalifa building will cost much more - not less than 11000 rubles. You can visit the public beaches for free, but to enter the private beaches you will need to pay about 100-150 rubles.

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It is possible to obtain a residence permit based on both active and passive income. Citizens of third countries (including Russians) who want to stay in the country can apply for the program “Visitor”. The minimum monthly income is €2000. It does not necessarily have to be passive - an ordinary salary is also suitable, but it is important that any income must come from outside Cyprus. The residence permit is issued for 1 year with the possibility of extension.

🔸 How to get a Visitor visa

Cypriot consulates abroad are not authorized to issue national visas, so first you have to get a Schengen visa in your country of citizenship or a residence permit, enter Cyprus and apply for a residence permit at the immigration office.

🔸 List of documents for application for residence permit Visitor

• Copy of passport with at least 3 months validity
• Original medical certificate confirming that the applicant and his/her family members are not HIV, syphilis, hepatitis B and C (blood tests), tuberculosis (X-rays). Children under 15 years of age must have a mantoux test instead of an X-ray. Children under 6 years of age do not need a medical examination.
• Accommodation in Cyprus Rental Agreement
• Proof of income of at least €2,000 per month or €24,000 per year. For the spouse is required +20% of income. For each child - +15%. You must show at least €10,000 in a bank account when you apply for a residence permit for the first time. In the case of an extension, a minimum of €6,000.
• Birth certificate with apostille and translation into English or Greek. You have to show the original with an apostilled and translated copy for the first application, in case of renewal only a copy is needed.
• Marriage certificate (for married couples).

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Analysts have translated pollution levels into the number of cigarettes that metropolitan residents are forced to consume as passive smokers.

May be useful when choosing a direction to move to.

If you live in a place with relatively clean air, such as Minsk or Riga, and you are going to go to a place where the situation is much worse, say, Tbilisi or Athens, you are likely to “feel the difference”.

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More and more countries are trying to attract remote workers. What new digital nomad visas are coming in the future?

🇮🇹 Italy

The exact parameters of participation in the program are still being discussed, but it is already known that it will be a one-year renewable residence permit. It is assumed that remote workers will also need to prove that they have suitable accommodation, health insurance and no criminal record.

🇱🇻 Latvia

In February 2022, the Cabinet approved a bill that would allow remote workers to reside in Latvia for one year and then extend the permit for another year. The applicant would need to provide proof of employment outside the country and proof of income exceeding 2.5 average Latvian wages (about $2,000).

🇲🇰 Northern Macedonia

In late January 2021, North Macedonia announced it was working on a digital nomad law. The country plans to attract remote workers and startups. But no more specific information has emerged since then.

🇲🇪 Montenegro

As of now, it is known that the permit will be issued for up to two years with the possibility of renewal for another two years. After four years of cumulative stay as a “digital nomad,” the country will need to leave for a minimum of six months.

🇿🇦 SOUTH AFRICA

Applicants will need to demonstrate proof of employment abroad, as well as sufficient income from activities or their own business registered outside of South Africa. No official figure has been announced, but it is expected to be about $3,000 per month.

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