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Forbes
10 hours ago
- Business
- Forbes
Why Second Cities Are Becoming First Choices For Foreign Direct Investment
Jennifer Wakefield, APR, is President and CEO of the Greater Richmond Partnership. For international business, the U.S. often remains the ultimate proving ground. But the rules are changing, and a new wave of trade policies marked by fluctuating tariffs has introduced a level of uncertainty that's hard to ignore. For many global companies, that's turning what used to be a straightforward expansion into a far more strategic calculation. Traditional U.S. gateways still carry weight. But they also often come with steeper costs, tighter labor markets and growing regulatory complexity. Tariffs can add to those pressures. So, it's no surprise some global companies are adjusting course. More and more, I've noticed they're skipping the big-name metros and planting their roots in second cities that offer what today's environment demands: flexibility, resilience and space to scale with confidence. But even as companies pivot toward new regions, the journey into the U.S. market can be more complicated than it first appears. Why Second Cities Are Gaining Ground As investment cools in China and Europe, the U.S. continues to lead the pack. Driven by the world's largest consumer market—nearly 30% (registration required) of global spending—the U.S. remains the top destination for foreign direct investment (FDI), with total FDI stock nearing $5 trillion. But the landscape has changed. The last wave of investment was driven by incentives and federal subsidies. This next wave? I've found it's being driven by trade policies and the need for supply chain certainty. For global firms, that means confronting a tough reality: Manufacturing in the U.S. is often necessary, but doing it in the most expensive, congested cities isn't. Labor shortages, real estate costs and infrastructure constraints in tier-one markets are forcing company leaders to think beyond the usual suspects. That's where second-tier cities come in. These regions don't always dominate headlines, but they often deliver where it counts: lower operating costs, skilled talent, modern infrastructure and business-friendly governments. As fDi Intelligence has noted, this shift is already underway. Global companies are choosing markets where the economics make sense and long-term value is clear. A Seven-Step Playbook For Smart U.S. Expansion Tariffs might be changing today's rules, but not the need for a solid strategy. Whether entering the market for the first time or relocating operations, this step-by-step approach can help global companies land smarter and scale more smoothly: 1. Prove success at home. U.S. expansion should build on a strong foundation. Make sure there's a track record of success and clear demand in the U.S. before committing resources. 2. Understand the U.S. market (and its regional differences). The U.S. is not one market. Each region has its own regulations, workforce trends and customer dynamics. Research carefully, and compare. 3. Build a data-driven business case. Assess operating costs, tax structures, industry clusters and logistics. Choose a location that supports both your bottom line and your long-term growth goals. 4. Do a ground check. Don't rely on assumptions. Visit potential sites, attend trade shows and meet with local stakeholders. The right location should feel right in practice, not just on paper. 5. Bring in U.S.-based experts early. From incorporation to IP protection and labor law, the U.S. legal and tax landscape is complex. Partnering with experienced local advisors can help prevent costly missteps. 6. Choose the right market entry path. Joint venture? Sales office? Greenfield investment? Weigh the trade-offs in control, cost and timeline to match your strategic objectives. 7. Localize and launch. From hiring local talent to adapting marketing strategies, success in the U.S. requires more than translation—it demands true localization. Tap into regional networks to accelerate integration. Tackling The Challenges Second cities are full of promise, but even with a solid playbook, expanding into the U.S. market comes with pitfalls that can surprise seasoned global businesses. From what I've seen, banking and finance often catch companies off guard. Many foreign businesses assume they can easily open accounts or secure loans, only to hit roadblocks because they lack a U.S. credit history or the right documentation. Something as simple as buying a company vehicle can turn into a cash-only transaction if financing isn't available. Immigration is another key challenge. Companies underestimate how long it can take to secure the right visas for transferring key staff—or how quickly policies can shift, leaving expansion plans in limbo. And then there's the U.S. tax system, which can feel like a maze. Firms aren't always prepared for layers of federal, state and local taxes, nor the risk of taxation in both the U.S. and their home country. These challenges are manageable, but only with eyes wide open. When working with U.S.-based advisors, such as lawyers, accountants and relocation experts who know the local rules and cultural nuances, it's wise to engage this support early in the process. (Disclosure: My organization helps with this, as do others.) And be ready to adapt, because success here often comes down to how well you navigate the details. The Bottom Line Second cities are having their moment because they offer what many global companies need right now: flexibility, speed and room to grow. New trade policies may have introduced friction, but they've also forced clarity. Global firms are pushed to rethink their U.S. strategies, and second cities are stepping up with compelling answers. From Richmond to Denver to Columbus to Raleigh, second cities across the country are offering global companies strategic value without the big-city price tag. For international companies, the message is clear: Don't just follow the crowd. Think about your expansion strategy carefully. Focus on fit, not flash. And consider looking to U.S. regions where resilience, access and growth align. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
CNET
09-07-2025
- Business
- CNET
Prime Day 2025: Grab Deals Now Before Tariffs Hike Prices for the Holidays, Expert Says
James Martin/CNET You may want to get a jumpstart on holiday shopping with Amazon Prime Day, the mega retailer's summer shopping event. Exclusive to Prime members, the event doubled in size to four days this year, offering some of the best Amazon deals of the year. But one expert says the effects of current and looming tariffs could mean prices will begin rising soon. President Donald Trump's "reciprocal tariffs" have plenty of us feeling antsy about prices. According to a recent CNET survey, 64% of shoppers said they've bought or plan to buy a tech product soon to avoid price increases or shortages. Prime Day could be a good opportunity to scoop up deals before prices go up any further. Experts don't expect new higher "reciprocal tariffs" to suddenly raise prices during Prime Day since most imported products for the event are likely already in the US. But Trump imposed a 10% baseline tariff in April, plus additional tariffs on Chinese goods and a 50% tariff on all steel and aluminum imports. That means you'll likely see higher prices on many things soon. "The general expectation is that [current tariffs] will push prices up in the second half of the year even if the additional 'reciprocal' tariffs never come into effect," said Timothy Meyer, Richard Allen/Cravath distinguished professor in international business law at Duke University School of Law. "Price increases due to tariffs are very likely for the holiday season." Amazon launched Prime Day back in 2015, and savvy shoppers have eagerly anticipated this annual event ever since. Our CNET Deals team will track all the best deals throughout the event so you can score the lowest prices. This will help you navigate the sale and stay ahead of any tariff-based price rises. Read more: Don't Wait: Score an Instant $200 Amazon Gift Card Ahead of Prime Day With This Card Watch this: Should You Buy Now or Wait? Our Experts Weigh In on Tariffs 09:42 How could tariffs affect Prime Day deals? Prices on everything, including appliances, are expected to rise as a result of Trump's sweeping tariffs, and some already have. Trump announced the tariffs in April, quickly putting them on a 90-day pause but leaving a 10% baseline tax on all countries. He announced earlier this week that he's extending his original July 9 deadline to Aug. 1 for some countries. In a social media post on Tuesday, Trump insisted that the Aug. 1 deadline is final. However, Trump has abruptly raised, lowered and paused tariffs since he originally announced them April 2, so there are no guarantees for Prime Day or going forward. Countries could face double-digit tariff hikes if they don't reach an agreement, and companies would likely pass through additional costs associated with tariffs to consumers. That means we could pay more for everything, including electronics. However, if you don't have the money earmarked to shop for Prime Day purchases, don't go into debt just to grab a deal. It's better to wait, even if prices are higher later this year. Otherwise, any savings you get from the deals could be wiped out by sky-high credit card interest rates. After launching the original Prime Day in 2015, the retailer has expanded the number of its sales events, including a Big Spring Sale in March and Prime Big Deal Days in October. Last year's Prime Day sale took place July 16-17.
South China Morning Post
05-07-2025
- Business
- South China Morning Post
Hong Kong wants to be the dominant domicile for the world's biggest companies
Christopher Hui Ching-yu has recently been on a world tour, conducting roadshows in Canada, the UK and Norway, in an effort to urge global businesses to redomicile in Hong Kong The main talking point for Hui, the Secretary for Financial Services and the Treasury, has been a new law, enacted in May, that sought to make it easier for overseas companies to reincorporate in the city. Just a few days after the law came into force, Hui flew to Canada to meet senior executives from insurers Manulife and Sun Life in Toronto and urged them to move their incorporations from Bermuda to the city. The new law came at a time when changes to global tax laws had made traditional havens like Bermuda and the Cayman Islands less appealing to international businesses. Hong Kong considered this an opportune moment to have firms redomicile in the city as part of its effort to promote itself as an international financial centre. Companies interested in moving their incorporations to Hong Kong have been attracted to the city because it was a bridge to mainland China, according to analysts. Not long after Hui met Manulife president and CEO Phil Witherington and other senior executives, Manulife (International), the biggest pension provider in the city, told customers it would redomicile to Hong Kong in November.
Globe and Mail
26-06-2025
- Business
- Globe and Mail
Cannabis Operator Curaleaf Plunges 46% YTD: Time to Sell or Hold?
Widely regarded as the largest cannabis operator by revenues, shares of Curaleaf Holdings CURLF have been declining persistently over the past few years due to regulatory hurdles and intensifying competition. While this Connecticut-based company has been aggressively cutting costs and expanding abroad, the core domestic market remains challenging to navigate, limiting the impact of its international progress. Let's delve into the company's fundamentals to gain a better understanding of how to play the stock amid this price decline. CURLF's Domestic Weakness Eclipses International Gains Curaleaf maintains a diversified business model in the cannabis space, spanning both retail and wholesale channels for both recreational and medical use, along with hemp-derived beverages. However, its top line continues to face pressure from a deteriorating domestic market. In its first-quarter results of 2025, Curaleaf's overall revenues fell by 9% year over year and 6% sequentially to $310 million. Although sales from the company's international segment increased by 74% year over year, it still represents a relatively small portion of the total revenues. Most sales continue to come from Curaleaf's domestic business, which remains under pressure due to the ongoing market saturation, pricing challenges and regulatory uncertainty. Despite these headwinds, Curaleaf reported an adjusted gross margin of 50% (up 250 basis points YoY) and even managed to generate $26 million in free cash flow. While higher selling prices and operational efficiencies drove this improvement, it was still not enough to turn a profit. The company's adjusted EBITDA margin declined 180 basis points YoY to 21%. Looking ahead, we expect the company to scale its international business and boost domestic profitability by focusing on high-margin formats, such as hemp-derived beverages and other products. The company's multiple cost-saving initiatives could further improve margins. Cutthroat Competition From Other Cannabis Players Curaleaf is targeting an overcrowded market. It faces stiff competition from its peers — Aurora Cannabis ACB, Canopy Growth CGC and Tilray Brands TLRY — all of which are also pursuing international expansion and cost optimization strategies, making the competitive landscape even tougher. As CURLF gains ground in Europe and Australia, competitive responses from Aurora Cannabis, Canopy Growth and Tilray Brands could intensify. CURLF Stock Performance and Estimates Shares of Curaleaf Holdings have plunged 46% year to date against the industry 's 7% rise, as seen in the chart below. Loss estimates for 2026 and 2027 have widened over the past 60 days. How to Play CURLF Stock? While Curaleaf's push into the THC beverages via its Select brand demonstrates strategic foresight, the persistent decline in its core domestic business makes it a risky bet in the near term. Also, a proposed federal bill that could significantly restrict (or even ban) the majority of hemp-derived products was recently approved by a House committee, posing further regulatory uncertainty. With a Zacks Rank #4 (Sell), the stock offers limited upside and elevated risk for conservative investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tilray Brands, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Free Stock Analysis Report Curaleaf Holdings, Inc. (CURLF): Free Stock Analysis Report
Yahoo
19-06-2025
- Business
- Yahoo
India's high-tech ambitions get a boost from Apple and US tariffs
Even before Trump's latest trade war, India was gunning for a greater slice, not only of the smartphone industry, but the entire supply chain, hoping to lure more international businesses away from China. Now, with Apple announcing it will build all US-bound smartphones in India, and US tariffs potentially handing it a competitive advantage, India is seeing new momentum. CNN's Clare Sebastian visits a city outside Delhi that has been transformed by India's hi-tech ambitions. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
