Chapter 7

Popular Ways to Earn a Living Abroad

Introduction

There are as many ways of earning a living abroad as there are stars in the sky. After living lived overseas for a few months you will learn many survival tricks and ways to make extra money. Expats tend to be resourceful people, and the experience of living abroad supports your ability to be creative and “think outside the box”.

Be aware that it may be illegal to work without a work permit. Once you have a work permit you are in the Governmental system and expected to pay taxes. Furthermore it may be necessary to apply for business licenses to provide specific services. In some countries the bureaucracy can be intimidating.

Below is a list of the 12 most common ways for expats to earn a living:

1.

Employment With an International or Foreign-Owned Company

Although this option probably allows least freedom, it probably offers a remuneration package enabling expats to live a comfortable lifestyle. Most employers regard overseas working experience with an international organization positively.

Professionals in the fields of banking, finance, law and consulting tend to find employment overseas easily because the large firms have an extensive network of offices worldwide. Internationally-recognized qualifications such as ACA (Associate member of the Institute of Chartered Accountants) enable qualified people to clinch overseas employment contracts.

Many international firms offer accommodation, return flights, health insurance and other benefits as well as an attractive salary to employees posted overseas. The salary is usually comparable to the earnings in your home country and therefore much higher than salaries offered by local firms.

If you are offered a lucrative position in paradise with an international firm, unless you have a valid reason for declining it, give it a try! In addition to the work experience and savings you should accumulate, you should have some fun and adventure too.

2.

Teaching English as a Foreign Language

It is estimated that over one third of a billion people are studying English worldwide. If English is your mother language and you have a dynamic personality the world is your oyster. However many schools require teachers to possess a TEFL (Teaching English as a Foreign Language) certificate and even a university degree. TEFL certificates are diploma level.

Usually it is not necessary to speak the local language, though a working knowledge of the language will help with your job applications. Prospective teachers must have an understanding of the country’s cultural issues, creativity and the ability to think “on your feet” and lots of patience.

The five main skills taught by English teachers are reading, writing, listening, speaking and thinking. The development of thinking skills is particularly important in cultures where learning is traditionally dogmatic and students learn by wrote.

If you don’t have the ability or inclination to do an impersonation of a chimpanzee in front of 35 wide-eyed students, it may be wise to consider other options. The best teachers are good entertainers and communicators with a passion for education.

Entry criteria for teaching English vary from country to country and school to school. Two of the most prestigious English teaching certificates are the Cambridge certificate (CELTA) and the Trinity certificate in TESOL (Teaching English to Speakers of Other Languages). Both courses provide a rigorous training in teaching English during one month of fulltime study. A TEFL course from a recognized school can cost around $1,500 or more.

English for Specific Purposes (ESP) provides specialist English teaching programs for various professions such as business, medicine, banking, environmental economics and food technology. Business English is offered by many companies to develop practical business communication skills for direct application in the office. Typically students of Business English would learn how to write business letters, how to answer phone calls in the office, and how to table executive meetings.

Case Study: Samantha specializes in English Specifically for Monks (ESM). She teaches monks in Northern Thailand how to train foreigners on Vipassana meditation retreats. She plans to write a course book for the monks during her MA (TESOL) course.

Many TEFL course providers have contracts with recruitment agencies or language schools overseas. Some schools guarantee a job for students who successfully complete their course.

English language teachers are in great demand in Japan, South Korea, China and Taiwan. Schools in Myanmar (formerly Burma), Vietnam and Cambodia also offer many opportunities for English teachers. There are tax free contracts available in the Middle East for highly qualified and experienced teachers with a master’s degree in education (MEd) or TESOL and several years of work experience. There are also many opportunities for English teachers in Russia, Kazakhstan and Latin America.

There are numerous English teaching jobs listed on the internet such as http://www.eslcafe.com and http://www.tefl.com. Most schools ask job applicants to email their resume with a covering letter. Remember to scan your certificates and references and keep an electronic copy. Most schools expect teachers to be dressed smartly in conservative attire.

Teaching opportunities are available in Government schools, international schools, language institutes and in companies. Consider whether you want to teach children or adults. Children in Vietnam and Japan are much better behaved than in Thailand where stronger leadership skills are necessary to maintain control of the classroom.

Although fulltime teachers typically teach 15-25 hours each week, it may be necessary to prepare lesson plans on site. Other schools are more flexible, allowing teachers to prepare for their classes at home. Fulltime teachers at Government schools usually work between 8.30am and 4.00pm. Language schools typically require their teachers to work between 5.00pm and 8.00pm on weekdays and daytime during the weekends.

If you do not want a fulltime teaching job you may find private teaching work on a freelance basis (usually one to one). Some English language schools offer part-time teaching positions, but usually the pay is lower than for fulltime work. I met expats working freelance in The Philippines who taught Koreans in local cafes. Many of these teachers, who had not taken a TEFL course, had never taught before.

3.

Owning a Local Tourist-Oriented Business

If you have enough money to purchase a business, and you enjoy working with people, why not start your own guesthouse, hotel, restaurant, bar, or internet café?

Research the popular tourist destinations which coincide with your idea of paradise. The most fashionable and developed tourist locations are most expensive. For example, buying a business in Thailand’s beach resort of Phuket would require more capital than in northern Thailand.

Establish an investment budget before actively looking for a business. There are many ways to find a suitable business - from networking to using business brokers and checking the business classifieds - and these are covered in chapter 3 (Buying an Independent Business).

Buyer Beware! (Caveat Emptor). It is the buyer’s responsibility to validate all representations provided by either seller or the seller’s broker. Chapter 3 offers advice on how to check the seller’s financial information and how to value the business. Do not make an offer until your due diligence is complete.

To view businesses for sale around the world, refer to the Sunbelt Network website at http://www.sunbeltnetwork.com.

4.

Real Estate And Business Brokering

In many countries real estate and business brokering is unregulated. This means that no training or qualifications are necessary for property intermediaries. Furthermore many people offer real estate agency services on a part-time basis alongside other activities.

Freelance real estate brokers can earn relatively large commissions without much investment of time or money. It is possible to earn commissions on a freelance basis if you are good at networking.

Here are the steps you must follow to earn your agency commissions:

Real estate agency is popular in many prime tourist locations such as Bangkok, Pattaya and Phuket in Thailand where property brokering is unregulated. Suitable locations attract retirees and regular visitors for their holidays. Choose a location that is booming, where property prices are rising or an area where tourism is undergoing development such as Sihanouk Ville in Cambodia.

Most expatriate brokers target buyer who live in American, Europe or Australasia. Prospective buyers are in the local bars and restaurants or relaxing on golf courses and beeches. The hottest prospects are aged 40s to 60s and either semi or fully retired.

Always get the seller’s agreement to pay your commission in writing. A signed agreement is ideal, though agreement by email usually suffices for freelance agents.

Identify private property developers other owners of real estate in the local classified newspapers or online listings. View and photograph the properties for sale and collect the owners’ contact information (email address and mobile number). When you have found a prospective buyer, tell the seller and ask him to confirm his agreement to pay your commission for introducing the buyer.

CASE STUDY: I noticed an advertisement for the sale of a condominium in Phuket for $105,000. I viewed the property. A few weeks later a colleague told me about a visitor wanting to buy such a condominium. I emailed details of the property to him (without information about the seller). The visitor was interested, so I asked the buyer to confirm his agreement to pay me the standard agency commission of 3% if I introduce a buyer. The seller immediately confirmed by email. Afterwards the buyer made an offer of $95,000 and the deal closed at the same price. Within 2 hours of completion the seller paid me my commission of $2,850 in cash. It really was that easy! All I needed was an internet address and a mobile phone.

If you want to work fulltime in business or real estate agency you need capital to pay for your office rent, vehicle, secretary cum receptionist and local listing agents and sales negotiators. Most real estate agents need to advertise extensively in local periodicals. You will need to license your business, obtain a work permit and pay the local taxes.

For further information about business brokering, check out The Complete Guide to Business Brokerage by Tom West, published by Business Brokerage Press (http://www.businessbookpress.com). Also look at the website of Sunbelt Business Advisors (http://www.sunbeltnetwork.com), the largest franchisor of business brokerages.

If you choose to start a real estate agency consider joining a worldwide real estate network such as NAI Global (http://www.naidirect.com). Member organizations receive quality enquiries and pay royalties on fees earned. There are several international real estate franchisors listed with the International Franchise Association (http://www.franchise.org). Some real estate businesses offer professional training courses for real estate professionals such as First National Real Estate in Australia (http://www.firstnational.com.au).

5.

Property Development and Management

I have met several foreign property developers in Asia who have profited from the growing demand for refurbished condominiums. The developers pay nominal tax on their profits, usually a proportion of the fees levied by the land registry when the property is transferred.

Foreign ownership of land is restricted in many developing countries to protect the country from being taken over. Usually foreigners are allowed to purchase condominiums if the majority of the units are locally owned. Check the local laws concerning foreign ownership of property before investing.

The most popular opportunities for property developers are in the up-and-coming tourist locations which attract holiday makers and retirees from around the world. Many businesspeople and retirees want to own their own home or apartment which has been built to western standards.

The most successful property developers buy blocks of repossessed condominium units from banks at auction. Typically they may pay $7,000 per unit for a lot of ten units in the same building. The developers usually employ a team of semi-skilled employees permanently for building and painting work.

The cost of renovation, refurbishment and furnishing to western standards may double their investment to $14,000 per unit. They sell the refurbished units from $20,000 to $30,000+.

The major challenge for property developers is controlling the quality of the workmanship and constantly juggling finances to keep the workforce occupied. Your reliable local foreman should be paid on a performance basis with penalties for poor workmanship or delays.

Try to maintain control over all purchases of materials otherwise your local foreman or contractors may receive substantial commissions - or kickbacks - from your suppliers.

Always pay your contractors progressively for work done. Never pay your contractors in advance otherwise you will lose control of the project.

There are benefits of using bank finance for your property development project other than restricting financial transfers from overseas. Usually the bank monitors the progress of the construction and identifies any defective workmanship.

6.

Online Trading and Auctions

Online trading platforms, such as Ebay.com, enable thousands of people to live and work in exotic countries around the world. Online trading is one of the world’s fastest-growing businesses. Products for sale in Europe and America are usually between 5 and 10 times more expensive than those in developing countries. Online traders take advantage of these price differentials, enabling them to live a comfortable life in paradise.

Many expats selling Asian products to a worldwide marketplace via the internet claim monthly profits of between $1,000 and $2,000. Successful online trading depends upon the uniqueness of your product and how it is presented. Some auction websites have many traders competing for the same buyers, while others favor the traders.

Products which sell for a high price are either unique or fashionable. Popular brand names are easy to sell, though the major auction websites try to prevent infringement of copyright or patents. In Asian markets counterfeit goods are common. The major online auction sites, such as http://ebay.com, close down trading accounts if they suspect illegal trading activity.

Many online traders residing throughout Asia do not have work permits, which is why it is important to have a local partner as manager and representative. Instead of working, they are investors and overseers. Traders usually declare a Post Office address (or PO Box number) as the sender’s address on the package.

The low cost of investment to start up this business is an obvious attraction. The prerequisites for online trading include a computer with internet connection, use of a digital camera, and an online bank account in the country of the online trading platform.

Registration with a suitable online trading platform takes a few minutes. Setting up an account with the Paypal (http://www.paypal.com) payment gateway is optional. Many buyers prefer to pay by direct bank credit using either telephone or internet banking. It will be necessary to check your online bank account daily to confirm your orders pending delivery.

Popular products for sale include fashion accessories, silver jewelry, belt buckles, shirts, handbags and cds. Traders usually start with 50 or more auctions running consecutively. Some traders get assistance to negotiate low prices for goods at the local markets. Typically 50 T-shirts which cost $2.25 each (total: $112.50) and sell for over $12 each (total: $600). This example represents a profit of 433%.

Your business terms and conditions should request buyers to wait up to two weeks for delivery. Your customer should receive their goods in less time than expected. It also helps to offer a “no quibble money back guarantee” if they return the goods in good condition within say 2 weeks. Don’t forget the importance of establishing a sound trading (customer feedback) history. Negative feedback by customers will harm your business, so keep your customers satisfied.

Products which are identified as based in Asia are much more difficult to sell compared to items stored in Europe or America. Many online traders respond to this issue by declaring their products for sale in their home country, with a proviso in their Terms & Conditions that products may be delivered from USA (for example) or Asia.

Many auction websites allow trading free of charge. Ebay.com and some of the more established internet platforms charge a small percentage of the sale price. Beware of fixed fees which apply regardless of whether the product sells or not.

Choose light items because postage can be relatively expensive, although you charge for postage & packing. Jewelry, cds, handbags, belt buckles and T-shirts are the most popular goods traded because they are light and widely marketable. Traders usually charge the standard postal rates for their home country, though some add a premium to their P & P fee.

The more experienced and sophisticated traders invest in product displays and elegant backdrops to enhance the presentation of their goods. Another avenue for experienced traders is formation of an online store, selling their products at fixed prices.

Christmas is the best time to take a holiday because the postal system operates at full capacity and delivery is much slower. Customer satisfaction is critically important because an unfettered track record will help you attract more customers.

7.

Freelance Consulting of Specialist Services

If you provide specialist skills and you want to work freelance in paradise, refer to chapter 5 (Working Freelance).

Your capital investment is likely to be limited to the cost of a computer notebook, a box of business cards and a mobile phone. The freelance practitioner meets clients in comfortable hotel lobbies, restaurants and cafes according to the client’s taste.

There are many American website programmers living and working freelance in Asia. Many of these freelancers earn standard business rates from their American customers while their local cost of living is below one quarter of what they would spend in USA.

There is also a local market of businesspeople requiring computer services including website design and promotion. However most freelancers are so busy servicing the needs of their overseas customers, they don’t need to accept contracts locally.

One Belgian freelance website developer commented that most of his European clients have no idea that he is “working” from tropical paradise. He also mentioned that he tries to keep a secret of his whereabouts; otherwise his clients may become envious and ask for lower consultancy rates.

8.

Writing & Publishing

If you enjoy writing there are many ways to make a living from this skill. The emergence of the worldwide web has increased the opportunities for budding scribblers.

Travel Writing

Travel writing is a popular occupation as there are a growing number of travel websites and magazine publishers wanting interesting articles about travel adventures. Some writers specialize in stories aimed at expats, while others write guidebooks on subjects ranging from building a house to day trading in paradise.

Publishing Proposals & Queries

Fiction writers usually complete their manuscript before submitting “queries” to publishers. Writers of nonfiction tend to send queries to publishers during the early stages of the project. A query is a one page “attention-grabber” and summary of the publishing concept, including the author’s biodata and contact information. If the publishers are hooked by your query they would usually request a more detailed publication proposal including competition analysis and proposed marketing information.

Writers increasingly need business management skills. Ability to write articulately is prerequisite. Publishers are looking for commercially-oriented writers with an irresistible concept supported by a sound marketing strategy. Too many wannabe writers focus on subjects satisfying themselves but not necessarily the marketplace of readers.

Literary Agents

Literary agents act as a bridge between author and publisher. Literary agents typically charge the author 10%-15% of the gross royalties payable to the author. A professional agent will present your work to suitable publishers. The publishing industry is “old school” and relationships are the key to success. Literary agents usually open more doors for authors and help maximize worldwide royalty income.

Timeline

If you propose to write a book for a publishing house, allow 12 months from acceptance of your proposal through to publication date. The editorial process may take between two weeks and three months. The cover design and layout of the “guts” of the book may take several weeks to complete. All text requires proofreading and checking in detail.

Writers’ Resources

The Writer’s Handbook, published by MacMillan, is a useful guide for authors. The guidebook contains listings of publishers and literary agents in USA, UK and other countries.

Magazine Publishing

Some expats choose to start up their own magazines, usually supported by local advertisers. However many magazine publishers discover that their main business is actually selling advertising.

If you have well-developed writing or editorial skills you should be able to find a job with a local newspaper or magazine publisher in many countries. Although a recognized training in journalism and media would be preferred, it is by no means mandatory. There is a shortage of professional editors.

Writers’ Clubs

There are writers’ clubs and interest groups in many expat centers around the world. These groups can offer a useful support network together with exchange of ideas and contacts. Writing can be a lonely occupation, so interaction with other wordsmiths can be fun while offering professional development.

Vanity Publishing

Do not throw money at vanity publishers who promise to publish your book at considerable cost to the author. If you cannot clinch a deal with a suitable publisher, you may benefit from publishing your book independently (or self-publishing). Typically a 200 page book may cost $0.75 - $1.50 to design and print overseas. Your book distributor will charge between 40% and 50% of the cover price.

Case Study: Bob lives in Pattaya. He self-published a nonfiction book and contracted with a local book distributor to sell his books to a countrywide chain of bookshops. He printed 2,000 copies and sold 1,000 copies within 12 months of publication. The recommended retail price of the book is $10.00. The distributor charges 40% (including retail discount). The cost of designing and printing all 2,000 books was $1,500, so Bob’s net profit for the first year was $4,500. He expects to sell the remaining 1,000 books over the next 18 months, making an additional net profit of $4,500. Therefore Bob expects a return of $9,000 on his investment of $1,500.

Further Information

If you are seriously interested in freelance travel writing you must obtain a copy of Lonely Planet’s book called Travel Writing by Don George (ISBN: 0-8644-2742-5).

The 101 Best Websites for Writers by Writersdigest.com is available online at http://www.writersdigest.com/101sites/.

9.

Volunteering

People of all ages, backgrounds, income levels, and abilities spend between two weeks and three years volunteering in different capacities on projects all over the world. You could volunteer on almost any type of project imaginable. Here are some examples of projects you could volunteer on:

The guidebook entitled How To Live Your Dream of Volunteering Overseas provides information about volunteering in a user-friendly format featuring quotes, worksheets, case studies, and inspiring stories. The book is based on six years of research that included fieldwork in over 25 countries, the book is not just a directory of opportunities, but a critical review of over 80 volunteer placement organizations in this rapidly growing field, as well as a detailed but easy to read manual about everything from why to volunteer to what to do when you get back. How To Live Your Dream of Volunteering Overseas is an in-depth guide for anyone who wants volunteer in Latin America, Africa, Asia, the Middle East or Eastern Europe. The book may be purchased from the following website: http://www.volunteeroverseas.org.

The Cost of Volunteering

Most programs offering international volunteer opportunities charge volunteers a fee to cover their administration and operational costs. Many of the voluntary organizations need to raise funds to contribute materials and other essential resources to the overseas project. Host communities do not usually have sufficient resources to accommodate and feed volunteers, and if they had money to pay volunteers, they would probably hire a local person who speaks the language and understands the culture. However there are a few international volunteer programs such as the Peace Corps and International Executive Service Corps which cover the cost of your room, board, and airfare. In most other cases, part of volunteering abroad means a commitment to fundraising.

Further Information

The International Volunteer Programs Association (IVPA) is an alliance of nonprofit, non-governmental organizations that are involved in international volunteer and internship exchanges. IVPA’s website is: http://www.volunteerinternational.org

The Peace Corps is one of the largest organizations supporting volunteers. The website is http://www.peacecorps.gov.

Other useful resources for anyone considering volunteering abroad are:

10.

Website Development

You can develop and publish websites almost anywhere in the world. So why not develop websites in paradise where you can enjoy a high quality of life? Although you will have low living costs, you will earn dollars or euros from your ecommerce projects.

If you have the necessary technical or management skills, this type of business can be operated from anywhere with a reasonable internet connection.

There are basically two types of website project:

The Information-based Internet Site

This type of website gives away free information about a specific interest (eg information about a city or country). The website owners’ objectives are to offer as much comprehensive reliable information for their target audience and to promote the website effectively.

The success of the website depends upon the number of visits to the site. The business receives an income from advertisers. The most popular form of adverting relates to Google’s Adsense. If your website is promoted well and you are highly ranked on the internet search engines, Google may allow you to participate on the Adsense programme.

How Adsense works: You allow Google to promote Google’s advertisers on your website. For each of referral you direct to Google’s advertisers, you receive income. Google’s advertisers pay fees to Google according to the number of visits (or clicks) directed to their website via third party website owners. .

Success in the business increases as website content (ie the number of web pages) increases. The website development is a continuous process, expanding and refining all the time. The website must be promoted well. It should be listed on as many internet directories as possible. Also, the website should contain embedded meta-tags containing the heading and keywords relevant to your site. Another method of website marketing is by way of link exchange (a mutual linking of websites).

E-Commerce Website

E-commerce websites are used to sell specific products and services. Most e-commerce websites use a “shopping cart” software program. These websites require a payment gateway enabling electronic payment by customers. The most common and easy to use payment gateway is Paypal (http://www.paypal.com). Paypal accepts payment via credit cards (eg Visa and Mastercard) and allows the merchant to withdraw the receipts.

The e-commerce website business can be much more complex than the aforementioned information-based website; particularly when warehousing and distribution are involved as well as maintaining the electronic payment system. The promotion of the e-commerce website is equally as important as the information-based website. But an e-commerce website may generate hundreds of customers; whereas the information- based website you only need one contract - with Google.com.

What makes an Effective Website?

Every website contains the following components:

Each one of these four components is important. Probably the biggest mistake is to overspend on website design and underestimating the importance of website promotion. Establish a realistic budget for promotion. What is the point of developing a sophisticated website that nobody visits?

Domain Name Registration and E-mail Forwarding

The location of your domain server is unimportant. It is beneficial to use the same company for both domain hosting and domain registration. You should have personal access to a password-protected control panel, enabling you to upload your website at any time. The cost of domain name registration and e-mail forwarding starts from $20 per annum.

The name of your website should express the nature of the business. Therefore, a good name for an information-based website for expats is http://www.expat.com.

It always looks more professional to promote your email address when it contains your unique domain name, instead of a hotmail address. It is easy to arrange e-mail forwarding to your personal e-mail account (eg from mailto:philip@expat.com to a personal email address.

Website Design

There are many skilled website programmers scattered around the globe, but many of them have graphic design skills. The rates charged by website designers in paradise can be a fraction of the fees charged by US and European designers. The cost of building an information-based website is usually much lower than for e-commerce websites.

Good planning and preparation prior to requesting quotations for design can save a lot of your money. Work out how many web pages you need and how you want them linked together. Identify a good website on which to model your project. Consider listing the main classifications and sub-classifications on an Excel spreadsheet. The optimal number of words per web page is 300, so work out how many pages you need. Decide which fonts you want to use and what images to include.

When you approach website designers for quotations, ask them for website addresses of projects they have completed for their clients. Evaluate their work. Is it well constructed? Are there any spelling mistakes? Is it laid out properly? Is it user friendly? Try a Google search to discover the website’s raking using a suitable keyword (if the designer is also responsible for its promotion). Check that they can do all the work themselves, because some practitioners need to subcontract graphic designers or database specialists.

The best way to identify good website designers is to source the best websites owned by businesses in your area. Find out who has the best website and then source the designer. Alternatively, check the private advertisements of website designers. Usually website designers can be found tapping their notebooks in comfortable cafes (which offer internet access), as they sip their latte or nibble their almond slice.

Website Hosting

Website hosting requires a server with sufficient memory for your website program. Hosting packages vary in price according to the size and complexity of the website. Small home-based website hosting plans usually start at $5+ per month; corporate website hosting plans are more expensive. Some hosts interrupt the internet connection during routine computer maintenance.

Website Promotion

Website promotion demands work at set-up (when the website has been designed) and ongoing marketing services. Establish a quarterly budget for website promotion because the task of maintaining a high ranking with internet search engines is continuous.

There are certain steps which must be taken when the website is designed. The site must convey clearly the purpose of the site. Your domain name should be congruent with the objectives of your website. Meta-tags containing page title and keywords must be embedded in the programming of each web page; this enables internet search engines to identify your website.

Your website designer may also incorporate a link exchange system. You promote an associate’s website and they promote yours. This two-way referral system works well between businesses which complement each other, rather than compete with one another.

Get listed on as many website directories as possible; sometimes registration is free but some companies charge an annual fee. Many established websites allow banner advertising but this may be expensive. If you are considering advertising with a website, check their ranking using relevant keywords on the major search engines.

Offering a free weekly or monthly e-newsletter is a great marketing tool, which enables you to build up a mailing list. The newsletter reminds your target audience about your website. People forward these e-newsletters to their friends if helpful.

11.

Import/Export and Manufacturing

If you are planning to establish a factory or import / export business overseas, your embassy’s commercial attaché may be able to offer guidance and useful contacts. Membership of your local chamber of commerce is another prime source of business information. To identify your nearest chamber refer to the World Chambers website at: http://www.worldchambers.com.

Many countries offer extensive support to foreign businesses. Examples of support include export promotion centers, economic free zones for investors, tax incentives and subsidized rent and services. Most developing countries provide a Board of Investment to assist and promote foreign investment.

Your three main options are:

The key issue for most manufacturers and exporters in developing countries is quality control. Establish a sound quality control management system. What’s the point of manufacturing thousands of cheap products if they are rejected or otherwise obsolete?

Popular products for export include jewelry, gemstones, clothes, handicrafts and leather products. Typically these products sell in America for over ten times the purchase price.

Gemstones and jewelry are favored due to the relatively low cost of delivery.

Favorable locations for exporters are influenced by exchange rates, productivity of local labor, wage rates, cost of transportation and bureaucracy. Currently China, Vietnam and India are popular countries for exporters.

Check the country’s list of prohibited imports and exports before researching the import or export duties. Export duties are payable to the Customs Department before shipping is permitted. The lists of import and export tariffs, which can be very detailed, are published by each country’s Customs Department.

Freight forwarders usually provide exporters with a one-stop transportation service which includes assistance with customs and shipping documentation, insurance and packing. Transportation is either CIF (Cost, Insurance and Freight) or FOB (Free on Board). Importers contracting on CIF terms are responsible for the goods from the port of arrival; whereas importers buying on FOB terms are responsible for the goods as soon as they are loaded onto the sea vessel.

12.

Online Day Trading of the Financial Markets

There are a growing number of expats earning a living in paradise by online day trading. They usually spend a few hours each day researching the financial markets and trading their investments online. Other than market knowledge, which can easily be gained by online research, all you need is an internet connection and an online trading account.

Trading in commodities such as oil, rubber, coffee, gold, silver and uranium is currently popular. There are several ways of benefiting from a commodities bull market, such as buying futures and options, investing in the mining companies, investing in mutual funds which specialize in commodities and even buying the physical commodity.

Some investors purchase metal bars from local gold shops. The gold and silver prices are published daily and local gold shops trade with a margin of approximately $5 per 15.2 grams (Baht Weight) of metal. In Thailand gold jewelry is 96.5% pure, equivalent to 23 karat gold. The alloy is harder than 24 karat pure gold and therefore more durable. Commodities tend to appreciate during times of economic instability.

Futures and Options are financial instruments known as derivatives. A “future” is a binding legal agreement to buy or sell a commodity or other investment. An “option” is a right - but not an obligation - to buy or sell futures contracts during a specified period. Both financial instruments play key roles in helping companies manage risks and lower the cost of doing business.

Some day traders claim massive profits. However others are less successful. Traders should not risk more money than they can afford to lose and obtain financial guidance about the trading risks, systems and procedures. Initially traders are advised to develop their knowledge and experience without investing their money.