A Worldwide ERC® publication - June 25, 2008

Global News Briefs

• Expat in Dubai: 'Backside Parties' All the Rage in Dubai
• Study Brands Minsk Worst City in Europe (Belarus)
• More Expatriates but Few Women Managing Firms (Switzerland)
• UK Warns of Higher Threat of Terror Attack in United Arab Emirates
• Employers Pay Price for Dollar's Weakness (USA)
• Korean College Graduates Seek Employment Opportunities Abroad
• US to Tighten Visa-Waiver Program
• There's No Place Like Home (Australia)
• Luanda Ranks as Most Costly City for Expats for Second Year (Angola, Global Interest)
• Indian Cities Become Cheaper to Live in for Expatriates
• Cambodia Starts to Beckon Private Equity
• Czech Senate Approves Handing Passengers' Data to US
• HP Rotating Execs Through China Experience
• Navigating China's Visa Problem

Expat in Dubai: 'Backside Parties' All the Rage in Dubai
London Telegraph (06/17/08) Kantaria, Annabel
 “Dinglish” is a blend of broken English, Hindi, and Arabic that most expatriate residents of Dubai end up speaking, as it is both practical and sociable, according to British expatriate Annabel Kantaria, who lives in Dubai. "A grip on the basics of Dinglish is essential when you need to get things done in Dubai," she maintains. "Ask for something to be done with typical British reserve and politeness and you'll be waiting a very long time." One example of Dinglish is a invitation Kantaria received to attend a party in a friend's "backside," which in Dinglish means backyard or rear building entrance. In Dinglish, "How are you?" means that the speaker is too busy to engage in conversation, and the proper response should also be "How are you?" Kantaria says Dinglish is also frequently used in the workplace, where the phrase that someone is "not on his seat" can mean anything from the person in question being somewhere else in the office to being on a vacation. She says that the Dinglish phrase "today itself" is regularly used in requests to get something done today, while "Today, inshallah" is actually a statement of refusal.Information Source

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Study Brands Minsk Worst City In Europe (Belarus)
Radio Free Europe (06/16/08)
Belarus, already ill-reputed because of its authoritarian government, has now seen its capital city of Minsk rated the European city with the worst living standards. A new Mercer study says expats in Minsk are worse off than their counterparts anywhere else in Europe, with the city coming in last among 183 European cities in the consulting firm's annual study of living standards. "One of the criteria in which it didn't get very good scores is consumer goods--the availability of fruit, meat, and fish; there's also the infrastructure--we're looking at reasonable, expatriate-standard housing facilities," says Mercer's Slagin Parakatil. "If an expatriate needs to have emergency surgery, the score is relatively low for services provided by both private and public hospitals." Minsk's recreational and airport facilities, transportation connections, and economic and political environment all rated poorly in the study as well. While some from Minsk disagree with this dour view of the city, a Radio Free Europe/Radio Liberty poll of people on the street found that many Minsk residents had a view similar to the Mercer study's, especially in terms of recreational facilities. Information Source

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More Expatriates but Few Women Managing Firms (Switzerland) Swissinfo (06/16/08)
The recruiting firm Guido Schilling & Partner reports that the largest Swiss firms are hiring a larger number of expat managers, although the archetypal top manager is still a Swiss man in his early fifties. Still, more than half of new managers are being brought in from other countries, and the number of foreign CEOs rose from 32 percent in 2006 to 38 percent in 2007. German nationals accounted for 34 percent of foreign executives in 2007, compared to 30 percent in 2006, while Americans made up 12 percent and Britons made up 10 percent in 2007. Managerial ranks in Switzerland were still largely bereft of women, as they made up just 4 percent of management positions and 6 percent of incoming managers. Information Source

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UK Warns of Higher Threat of Terror Attack in United Arab Emirates
Dow Jones Newswires (06/16/08) Critchlow, Andrew; Klaus, Oliver
The UK government is warning the United Arab Emirates and the approximately 120,000 British expatriates who live there about an increased risk of a terrorist attack. "There is a high threat from terrorism," an e-mail from the British Embassy indicated. "Terrorists may be planning to carry out attacks in the UAE" The message, delivered to registered UK expats in the emirates, read: "terrorist attacks could be indiscriminate and could happen at any time, including in places frequented by expatriates and foreign travelers such as residential compounds, military, oil, transport, and aviation interests." The UAE, where foreigners make up at least 80 percent of the population, is currently positioned at the highest possible level of risk for a terrorist attack. However, the embassy is not altering its advisory for visitors to the UAE and is not encouraging travelers to cancel their vacation plans in the emirates. Information Source

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Employers Pay Price for Dollar's Weakness (USA)
Houston Chronicle (06/14/08) Moreno, Jenalia
The American international business community is among those hit hardest by the weakness of the dollar in foreign trade, with Americans going abroad on business having to make many adjustments due to their home currency's weakness. Companies are adjusting expat salaries monthly, trade missions to Europe are being cut back, and business travelers are opting for public transportation over rental cars. "Usually companies understand that international assignments are expensive to begin with," says Achim Mossmann of KPMG, adding, "Some of the factors are just out of their control. They just deal with it at the end of the day." Another topic of concern is what currency to use for payment to expat employees. The oil-rig firm Northern Offshore is one company that recently changed the currency in which it pays expat supervisory employees, helping them maintain purchasing power, and helping the company retain the employees. Still, 68 percent of companies surveyed in May by GMAC Global Relocation Services said they expect to increase the number of employees assigned to overseas locations as they try to retain good employees with global savvy. Information Source

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Korean College Graduates Seek Employment Opportunities Abroad
Pacific Bridge (06/03/08) Vol. 8, No. 6,
The leading South Korean online recruitment site JobKorea reports that nearly 95 percent of recent Korean university graduates were willing to work abroad, and more than 25 percent had actively looked into doing so. Close to one-third said the United States was their leading choice for foreign employment, while others pointed to places such as Japan, the European Union, or Canada. Among reasons for seeking employment abroad were the chance to use foreign-language skills in the workplace, develop better professional skills, and experience more diversity in their work environments. The top conglomerates in South Korea typically hire predominantly from the three top universities in the country--Seoul National University, Korea University, and Yonsei University--so it is often difficult for young graduates from other schools to find work. This can be a boon for foreign companies operating in South Korea, as many Koreans seeking the chance to learn about Western-style management, work with international teams, and use their English skills would be good candidates for multinationals operating within the country. Information Source

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US to Tighten Visa-Waiver Program
Wall Street Journal (06/03/08) P. A6; Gorman, Siobhan
US Homeland Security Secretary Michael Chertoff is set to announce a new program which will require travelers from countries participating in the visa-waiver program to register with DHS at least three days prior to their arrival in the United States. DHS has been attempting to tighten the visa-waiver program, which allows travelers from 27 countries to enter the US without prescreening, due to concerns that terrorists could travel from those countries and bypass an important security measure. The new electronic system will collect the same information that passengers are currently required to disclose upon their arrival, they will just have to provide DHS with the information earlier. DHS will advise travelers to register their information, including their name, date of birth, and passport number, long before they plan a trip, although there will be a way to register at the last minute in the event of an emergency. The registration will be valid for two years. The program is scheduled to launch in August and registration will be mandatory beginning in January. Information Source

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There's No Place Like Home (Australia)
Money Management (Australia) (06/12/08) P. 1; Egan, Liam Softening American and British investment markets are spurring Australian expatriate financial planners and fund management professionals to decamp back to their native land, while a trio of Australian financial services recruitment specialists say a marketing push by financial services firms to draw expatriates back is also playing a part. They add that expatriates are having an easier time electing to come home thanks to skills shortfalls in Australia and commensurate growth in compensation. A poll by Link Recruitment estimated that 34,000 Australian nationals returned home from Britain in the past 12 months, and Link's Jason Cartwright credits a "definite slowdown in the financial services sector overseas, both in permanent recruitment and temporary and contract work" for the rise in influx. He says that returning expatriates often decide to come home before they lose their jobs to soft overseas market conditions, while Lee Humphrey of Derwent Executive observes that "A lot of the returning funds management expatriates have structured credit experience--evidence of the fallout from the ongoing credit crisis." Demand for expatriates skilled in quantitative analysis across all asset classes is also strong, and Hays Banking's Jane McNeill reports higher returns of expatriate financial advisers, partly due to Australian employers being more favorably inclined toward internationally trained advisers because of the skills shortage in Australia. Information Source

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Luanda Ranks as Most Costly City for Expats for Second Year (Angola, Global Interest)
Bloomberg (06/12/08) Andrusz, Katya
An ECA International survey puts Angola's capital city, Luanda, as the world's most expensive city for expats for the second straight year, and several other African cities--Libreville, Kinshasa, Abidjan, and Abuja--are also near the top of the list, thanks in part to the high cost of imported goods favored by many expats. Food and fuel prices around the world has boosted inflation in many countries that host expats. In the past six months, for example, India has seen the cost of rice increase by 11 percent and Italy has seen the cost of pasta rise 12 percent. Behind Luanda on the list were the Norwegian cities of Oslo and Stavenger, followed by Copenhagen and Moscow. The Swiss cities of Zurich, Geneva, Basel, and Bern were all in the top 10 as well; meanwhile, central London saw its place on this year's list fall 14 spots from last year's to No. 24. Information Source

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Indian Cities Become Cheaper to Live in for Expatriates
Economic Times of India (06/11/08)
Despite the negative impact of rising commodity prices on ordinary people in India, a new survey says expats living in India have not felt the crunch and in fact have seen their cost of living decrease. Mumbai, New Delhi, Chennai, Hyderabad, Kolkata, Pune and Bangalore all declined in terms of cost of living for expats in the ECA International survey for March, thanks to a weakening currency--a factor that also made cost of living cheaper for other Asian locales such as South Korea and Hong Kong. Expats also enjoy relatively high incomes in developing countries, which means they are impacted less by rising costs of basic necessities. Relative inflation between their host location and their homelands also factors into the cost of living calculations. "The recent major swings in exchange rates underlines the need for companies to manage expatriate pay carefully. We normally advise paying part of an assignee's salary in the home location and part in the host location since this helps to limit the adverse affects of subsequent exchange rate fluctuations," says Lee Quane, ECA International's Asia general manager. Information Source

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Cambodia Starts to Beckon Private Equity
Wall Street Journal (06/10/08) Wright, Stephen
Cambodia is being viewed as new territory for private equity, but the country's history of corruption, business secrecy, and weak laws raises concerns about foreign investment's ability to thrive there. Cambodia's expatriate business community has long striven to counter negative perceptions of the nation. Leopard Asia sees food processing, property, agribusiness, and the garments industry as prime areas of opportunity for investment, says managing partner Douglas Clayton. Finding sufficient suitable opportunities to absorb a vast volume of private equity capital is a further challenge for investors, with Cambodia Emerald Fund managing director Peter Brimble noting that the trick involves locating companies with accounting and management standards that approach international norms. He adds that the Cambodian government's efforts to enhance transparency and legal standards, along with the continued steady growth of the economy, can aid the absorption of the money. "As we dig deeper into this country and connect with the entrepreneurial class we are finding a lot of opportunities," Brimble says. Information Source

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Czech Senate Approves Handing Passengers' Data to US
Xinhua News Agency (06/05/08)
The Czech Senate recently approved an agreement between the United States and the EU that calls on EU countries' airline operators to provide the US Department of Homeland Security with information on airline travelers. Foreign Minister Karel Schwarzenberg said that the agreement is the third document of its kind and the highest possible negotiation with the United States, as it satisfies orders for increasing efforts to stop terrorism. It also meets EU demands for the protection of private information. The United States started requesting data on travelers from airline operators back in 2003. Information Source

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HP Rotating Execs Through China Experience
San Jose Mercury News (CA) (05/30/08) Boudreau, John
Hewlett-Packard recently kicked off its China Executive in Residence Program designed to provide its leading software division executives with a more meaningful experience of foreign culture by sending them and their families to China for three weeks. The program enables the executives to spend time with the firm's regional leaders and chief clients. Tom Hogan, senior vice president of HP Software, says the Chinese are grateful when foreigners devote time to learn about their culture and build more personal relationships. More Silicon Valley corporations are sending their executives abroad to places like China and India for multiple-week stays. "You establish a level of trust and understanding," says Rafiq Dossani, a research scholar at Stanford University's Asia-Pacific Research Center. "These are big, complex countries. It takes time to get to know them. Certainly, some familiarity is better than none. The biggest benefit would be if they come back with networks they sustain." Information Source

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Navigating China's Visa Problem
Forbes (05/28/08) Lindner, Melanie
Doing business in China can be lucrative, but obtaining visas has become more difficult. Foreigners who hope to operate a business or a branch in China need to apply for a "Z" work visa that can cost $2,000 to $5,000 to file and $8,000 to $10,000 in legal fees. Applicants must also pay a minimum "capital requirement" to be deposited in a bank in China at the time of registration; that sum is determined by a local government in China. Individuals who need to conduct business in China without opening a company or branch need to get an "F" visa that costs about $130. Such visas require that the applicant obtain a formal invitation from the entity he or she is doing business with. Tourist visas also cost $130, and anyone who illegally runs a business while unregistered runs the risk of having their business shut down by police "in one day," says international lawyer Dan Harris, while foreigners with invalid visas are fined. Their passports are also stamped with a statement reading, "has to leave China within 10 days," which essentially prohibits the issuance of a future visa to China, says Harris. He says by being tougher with foreigners, nationalism is boosted, which helps keep the government in power. Information Source

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