When thinking about locating overseas, look for monetary incentives offered by national and local governments and investigate the local business environments-including transport and communications

infrastructure, the labor pool and available housing and schooling, among others. While each country offers individual incentives and differing environments, there are common things to be on the lookout for.

It's More Than Just Incentives in the Netherlands

People are definitely business oriented in the Netherlands, but they also know how to relax, as Scott Becker learned early in his exposure to the country. Becker, director European operations for Dayton, Ohio-based pet food maker IAMS, says, "A meal is going to be three or four hours long. And you don't tip and you have to ask for the bill. Restaurateurs are not into volume, it's a social experience more than a meal."

IAMS began producing pet food at Coevorden, Netherlands, in January 1999. The company had already established a sales-and-marketing operation in Eindhoven, and was naturally open to building a manufacturing plant in the same country. Even so, an IAMS committee investigated more than 40 potential European locations before settling on Coevorden.

The site was chosen for the $80-million plant because, says Becker, "It came down to the long-term objectives. You can give us all the subsidies in the world, but at the end of the day, you've got to have the raw materials, the ability to produce, a strong workforce, an educated workforce, and the logistical infrastructure to get it from Point A to Point B."

IAMS did, however, take advantage of some incentives offered by Netherlands regional and national governments. Among these were funds that helped offset various costs such as employee training, water-transport development, and utilities infrastructure.

In general, the Netherlands offers six types of incentives for companies interested in putting down roots in the country. They are investment grants, environmental incentives, R&D grants, energy grants, training and wage-costs subsidies, and special tax incentives.

Becker is impressed with the integrity of the system and the people he dealt with in establishing the plant. "Whatever the municipality or government said they would do, either officially or unofficially, they lived up to those promises," he says. "You can't say that about everywhere."

Cisco Systems, IBM, PFSweb, Federal Express, and Amazon.com are among other high-profile companies that have opened operations in the Netherlands.

For more information, contact the Netherlands Foreign Investment Agency, www.nfia.com. 212-246-1434.

Taking Account of

Intangibles in Belgium

One could call Brussels, Belgium, the capital of Europe, since most European Union commissions are based there. One could also call the country, as a whole, like the Netherlands, a hub of Europe, since it enjoys a central location and has sea, land, and air connections to the world.

In fact, says Pol Vermote, director of the Ministry of Finance's fiscal department for foreign investments, "From Belgium, you can quickly reach other parts of European markets or even Asian markets. I see many companies locate here to work with both European and non-European markets."

Facility in languages is one of Belgium's strong points. After all, it's already three countries in one, with the Flemish, Walloon, and Brussels regions, each one of which has its own language. Therefore, call centers are increasingly finding good homes in the country.

In addition to the usual tax incentives offered by many countries, Belgium has developed a special acknowledgment of intangible assets, which it calls the InfoCap ruling (for informal capital contribution). "The economic reality," says Vermote, "is that in setting up a new production entity, there is a lot of transfer of intangibles. To the extent that there is a transfer of intangibles free of charge, the minister of finance estimates its value and that value can be depreciated over a period of at least ten years."

Among US companies with a presence in Belgium are Black & Decker, Ford Motor Company, General Motors, Procter & Gamble, and Staples.

Further information is available from Invest in Belgium, www.ib.fgov.be. 202-625-5887.

Finding the Right Mix of Financial and Non-financial Factors in Ireland

With about 500 US companies having found an overseas home in Ireland, the country must have something going for it. Actually, Ireland has several somethings going for it. Patrick Howlin, director of the West Coast (US) division of the Irish Development Agency (IDA), echoes Scott Becker about various incentives: "Financial incentives are never the deciding factor," he declares. "The deciding factors tend to be the availability of people, the infrastructure, and the logistics. If those basic things aren't there, you're not even at the table."

Ireland is a case that proves Howlin's point. Road, air, and sea transportation facilities are as good as can be found anywhere in the world. The country has up-to-date broadband connectivity for Internet communications directly between the US and Ireland, as well as the rest of Europe. There are direct flights between Dublin and Los Angeles, Atlanta, Chicago, and the East Coast.

The IDA's purpose is to help foreign companies find the right location with the right factors financial and non-financial. A company that wants to start from the ground up can expect to find all the information it needs to make a decision: demographics, infrastructure and transportation data, and the like.

But a company that's in a hurry could very well find that one of Ireland's ready-made industrial estates will suit its purpose. Howlin calls them "advance facilities," and explains, "They are shell units that can be occupied immediately and fit out for the company's needs.

Among the financial incentives Ireland offers are its capital grant program, an employment grant program and a training grant program.

Recent US-company operations established in Ireland include some by Breakaway Solutions, Intel, Prudential Insurance, and Tessy Plastics.

Details on investing in Ireland are available from the Irish Development Agency, www.idaireland.com.

Canada: The IT Low-Price Leader

Canada has decided to vigorously pursue the high-tech sector. According to a recent study conducted by KPMG, the country has done so with a vengeance. The study concluded that Canada offers the lowest business costs in North America and Europe.

The federal and provincial governments in Canada have worked together to create investment packages especially palatable to small- and medium-sized companies engaged in knowledge- based industries. For example, there are healthy tax provisions made for research and development.

For companies of any size, the Canadian federal government has in place what it calls Technology Partnerships Canada (TPC). With this program, the government invests in projects that are near market stage and have the potential to stimulate the creation of jobs and economic growth in the country.

Because of the North American Free Trade Agreement, a US company doing business in Canada can easily do business in the US-often at less cost than if the company's facility were south of the 54th parallel. Contact the Dept. of Foreign Affairs and International Trade, www.dfait-maeci.gc.ca for more information.