By opening up overseas branches, companies strengthen business and economy

By opening up overseas branches, companies strengthen business and economy

If the Netherlands wishes to continue benefiting from economic growth abroad, it is more important than ever that our companies establish international bases. The increasing production in the local market and the gradual shift towards service economies also call for stronger local representation. This is written in the publication ‘Across the border’ by ING Economics Bureau

Approximately 36% of Dutch companies export overseas. However, it is estimated that only a tiny proportion of these (a few per cent) have actually established a branch abroad. Among freelancers, 9% export overseas and less than 1% has an overseas branch.

A successful international branch not only strengthens the company itself, but the Dutch economy also benefits from it. Jurjen Witteveen, senior economist at ING Economics Bureau: “Management of the overseas network creates jobs at the head office. But even more importantly, it strengthens the product and service provision of the company. This often leads to more export orders for the Dutch branch.” Finally, in the case of Dutch shareholders, returning profits enhance the national income. Via consumption and investment, this partially flows back into the ‘real’ economy.

Source: Accountancy vanmorgen (Nov 2016)