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Tag: Global Entrepreneurship

  • 5 Effective Strategies for Building a High-Performing Global Team | Entrepreneur

    5 Effective Strategies for Building a High-Performing Global Team | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Global expansion is a huge move for your business that can complicate matters when you want to increase the size of your team. Hiring qualified employees from abroad can be complicated. Many things have to be considered, including new rules or regulations in different countries that need to be followed and cultural differences that may also arise.

    In the ever-changing global business environment, the use of appropriate technologies and strategies can set apart successful firms from average or struggling ones.

    In light of this, how do you then put together an amazing global team? Through my own experience, I’ve discovered 5 key strategies that can set you and your team up for success.

    1. Support workplace diversity and Inclusivity

    If you establish an inclusive and efficient system culture across your globally expanding enterprise, then performance will increase immediately. However, one should also bear in mind that cultural disparities exist among team members from diverse backgrounds. You will need to create a workplace that respects and recognizes each person’s culture while also fostering an understanding of various traditions and opinions.

    There’s a need for companies to consider various holidays people celebrate in different countries so as not to be seen as ignorant or insensitive by their own employees who come from other places. Common concerns revolve around non-verbal communication like gestures at work, dress codes in offices and how we relate with one another socially . One way out is by employing experts who specialize in diversity issues across cultures, such as customs or traditions, to ensure a safe and respectful work culture.

    Related: Life’s Too Short to Work With Incompatible People — Follow These 3 Secrets To Building High-Performing Teams

    2. Leverage EOR Service

    If you are expanding your business globally, it may really help to hire an Employment of Record (EOR) service provider. An Employment of Record legally employs your team members in their local country on your behalf. It enables you to access the best skills from anywhere around the world without necessarily having to go through the lengthy procedure of first establishing foreign legal entities yourself.

    When you partner with a good EOR, you get a bunch of sweet benefits:

    • Faster access to global talent: You can start building your team abroad as soon as possible instead of waiting months for all the legal paperwork to go through.
    • Less worry about compliance: EORs take care of handling all those local employment laws and HR requirements that give you headaches.
    • Cost savings: EORs have the expertise to help minimize your operational costs when hiring globally.
    • Flexibility: You can easily scale your global team up or down as your business needs change.
    • Specialized expertise: EORs have tons of experience helping companies expand globally the right way.

    Lean on EOR specialists so you can focus less on annoying HR logistics and more on finding superstar talent around the world.

    3. Invest in management training

    To succeed globally, you need awesome managers across the board. That’s why strategy number three is to invest heavily in management training.

    Make sure your managers are pros at leading global teams. A quality manager in a distributed team excels at nurturing career growth, making the most of their unique talents, ensuring smooth conflict resolution, and guiding through change and uncertainty. They build adaptability and psychological safety, encouraging open communication.

    Additionally, the ability to encourage and inspire individuals as a manager will create an environment in which every team member feels welcomed and encouraged. Each one’s unique strengths can be recognized and leveraged for the success and cohesion of the team.

    In fact, managers account for 70% of the variability in team engagement. Well-trained managers unite your global workforce and amplify your culture anywhere.

    4. Focus on building trust

    When your team is distributed worldwide, success depends a ton on trusting relationships. That’s why strategy number four is to focus on building trust and connections, even from afar.

    Building trust in a global team requires participation in a variety of activities that promote bonding and camaraderie. Icebreaker games during meetings and setting up Slack channels for casual talk all help team members bond. Hosting virtual coffee talks or happy hours provides for socialization outside of work, whereas annual in-person offsite gatherings provide valuable face-to-face interactions.

    Furthermore, it is critical to tailor communication techniques to each direct report, publicly acknowledge wins and progress, and listen deeply to understand different perspectives. These actions make team members feel appreciated, heard, and connected, ultimately building trust within the team.

    When managers invest in relationships, their teams perform better. Trust accelerates team cohesion, collaboration and results.

    Related: 10 Simple Steps to Build an Exceptional and Efficient Team

    5. Set up clear communication channels

    When organizing a clear communication protocol, time zone differences could become a major, even impactful, issue. Face-to-face meetings between team members may be nearly impossible when they work from different areas of the world. That’s where video conferences can ensure fast and efficient dialogue.

    A number of video conferencing tools recently achieved global use as remote work grew in popularity. Tools like Zoom and Google Meet help businesses hold on-the-spot presentations, webinars, and team meetings with accurate, real-time visuals. They also give team managers the ability to arrange one-on-one check-in sessions with employees, allowing them to discuss workload and other relevant concerns.

    Expanding your business globally does not always mean success. However, you can achieve this goal through careful planning, effective communication, and an all-inclusive corporate culture. Above all, using local collaborators in the form of an Employer of Record exponentially increases the chances of building a winning team.

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    Pritom Das

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  • 6 Obstacles of Expanding Your Company Internationally — and How to Overcome Them. | Entrepreneur

    6 Obstacles of Expanding Your Company Internationally — and How to Overcome Them. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Expanding a successful startup internationally can be exciting, but it’s not without its challenges. What works in one country might not necessarily translate smoothly to another. The world is a diverse tapestry of cultures, legal systems and market dynamics. Let’s explore the obstacles that startups should manage when venturing into the international arena, complete with real-life examples that shed light on the complexities of global entrepreneurship.

    Related: Successful Leaders Think Globally — How to Expand Your Business Abroad For Maximum Success

    Cultural challenges

    Culture is like a hidden iceberg that can sink your international business if not navigated carefully. Cultural challenges are often pivotal aspects of international business expansion. A profound understanding of local customs, values and preferences is indispensable for success.

    For instance, McDonald’s faced a significant cultural challenge when entering the Indian market, where vegetarianism is prevalent. To resonate with the predominantly vegetarian customer base, the company astutely adapted its menu. This transformation included the introduction of a variety of spicy sauces and condiments, along with local favorites like masala fries. This strategic move not only ensured the acceptance of the McDonald’s brand but also significantly boosted its popularity in India. This example underscores the vital role that cultural sensitivity plays in international expansion, as it can be a decisive factor in whether a business thrives or struggles in new markets. Understanding and respecting local cultures can turn challenges into opportunities and create lasting success.

    Team dynamics

    Managing a team spread across different countries can be a complex jigsaw puzzle. Critical decisions about staffing levels, choosing between local or international teams and HR processes weigh heavily on the success of international ventures. Recruiting and relocating foreign teams to specific countries often entail intricate processes, extending over several months. Consequently, meticulous and timely preparations become invaluable in alleviating stress and conserving significant resources.

    Related: 3 Steps to a Successful International Expansion

    Product adaptation

    Your product may be a hit at home, but it might need a makeover abroad. Nestlé’s experience in Japan is a classic example. They realized that their standard ice cream bars were too large for Japanese freezers. So, they downsized the product, ensuring a snug fit.
    Had Nestlé not recognized and addressed this issue promptly, it could have led to a series of potential losses and setbacks, including financial losses, reputation damage, market share erosion and missed opportunities. By adapting their product size to Japanese preferences, Nestlé not only prevented potential losses but also tapped into a market segment they might have otherwise missed. Small changes can make a big difference in product acceptance.

    Marketing mishaps

    Marketing is a minefield where a misstep can have serious consequences. Procter & Gamble (P&G) learned this the hard way during the mid-1970s when they ventured into the Japanese market with Pampers disposable diapers. In the United States, P&G’s diaper advertisements featuring storks struck a chord with parents eager to bid adieu to cloth diapers. However, this approach fell flat in Japan, where storks had no association with delivering babies. Instead, Japanese folklore featured giant peaches. A comprehensive understanding of local customs and traditions is essential for success in diverse global markets.

    Navigating legal landscapes

    Setting up a business internationally involves grappling with legal complexities. Airbnb, for example, had to adapt to varying regulations in different countries. Some places imposed restrictions on short-term rentals, while others required hosts to register. Adhering to local laws and regulations is essential to avoid legal troubles. Additionally, choosing the right legal structure for your business is crucial, considering ownership restrictions in some countries, such as specific limitations on foreign ownership and requirements for local shareholders or partners. Selecting the appropriate company type, appointing directors and securing the necessary permits are all fundamental steps in this intricate legal process.

    Related: 4 Tips for Expanding Your Business Globally

    Licensing, permits and intellectual property protection

    Securing the necessary licenses and permits for your business can vary significantly from one jurisdiction to another. Just because you have the required permits in one country doesn’t guarantee the same in another. This intricate process involves understanding and complying with diverse legal requirements. In addition to licenses and permits, safeguarding intellectual property (IP) rights is paramount. Apple’s protracted struggle with Chinese counterfeiters exemplifies the hurdles of protecting IP in a global marketplace. Your business must navigate these intricacies diligently to operate smoothly and safeguard your innovations and assets.

    Expanding internationally is a thrilling journey filled with opportunities and hurdles that test the mettle of startups. As exemplified by real-life cases like McDonald’s catering to Indian tastes and Nestlé’s ice cream adaptation in Japan, the ability to adapt, respect local norms and navigate the intricacies of diverse markets is the cornerstone of international success.

    Each obstacle conquered not only adds to a company’s expertise but also unlocks the potential for broader global reach and influence, creating a more resilient and adaptable organization. International expansion may not be a piece of cake, but with the right preparation, a keen mindset and an unwavering commitment to understanding and embracing global diversity, it can be an immensely rewarding adventure that propels businesses to new heights of success.

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    Olga Fleming

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  • How Working With Startups from Around the World Can Improve Your Business | Entrepreneur

    How Working With Startups from Around the World Can Improve Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Growing up in rural Illinois, I had little international communications experience. In fact, it was actually sitting at a big zero by the time I got to college. In my first few jobs, I lived and worked in big (and then bigger) cities and grew experience working with people from all over the world. It energized me to learn about different cultures, customs and communication styles. Colleagues and clients inspired me to travel and increased the “countries to visit” portion of my bucket list.

    Launching a virtual public relations agency meant the in-person meetings may have reduced, but the ability to connect with even more people worldwide increased exponentially.

    Our agency works with partners all over the United States and India, Israel, Finland, England, APAC and more. One of the best things about working in the tech space in many countries is that great partnerships tend to lead to more great collaborations and opportunities (and even friendships).

    We have a CMO partner in Israel who has hired us in her last three positions, recommended us to other Israeli tech companies and is someone I would now consider a personal friend. It was upon working with her years ago we quickly discovered the growing Israeli tech scene and made a point to connect with others in the space.

    While a personal example, working and collaborating with international partners has given my team and me priceless experience in international business relations.

    If your business allows it and you have not started working with partners outside your own country of origin, I highly recommend it.

    Related: Surviving the Storm: 10 Effective Communication Strategies for Startups to Survive the Economic Downturn

    1. The early riser benefit

    Working on the west coast, I often have early morning meetings to coincide with my east coast counterparts’ and media schedules. But it’s also a perfect time for international calls to take advantage of the overlap between working hours. It may also help you be more productive by working during your peak hours. By working with companies on the other side of the world, you can schedule your work around your natural energy levels.

    Once you’ve connected at the end of their day and the start of yours, the rest of the day means fewer interruptions by Slack, WhatsApp, emails and other distractions.

    This may ultimately increase your bandwidth to take on additional clients as time management improves due to time zone communication.

    Related: Should You Head to the East or West Coast to Launch Your Startup?

    2. Collaborative learning

    International partners foster a more collaborative environment. Working with brands from other countries can help a PR agency learn about new cultures and how to do business in different parts of the world.

    This knowledge impacts and develops new strategies and tactics that can be used to help their clients succeed. It’s far too easy to become complacent in your country’s norms, and it’s essential to hear, see and learn about other ways of life, trends and cultures.

    3. Gain access to new markets

    “The world is a small place” is true when you specialize in an industry. As mentioned above, many countries have ecosystems in particular areas, and it can mean ongoing referral partnerships after a single successful engagement.

    Working with brands from other countries ultimately helps a PR agency to gain access to new markets. This is a great way to expand the business and reach new customers.

    4. International partners

    In our case, companies looking to hire us to increase their presence in the North American market may have a country-specific PR agency they work with. That means we get to partner with another team who already shares a common bond through our profession.

    It provides several benefits, including:

    • Access to new markets: Partners have the local knowledge and expertise you need to succeed in new markets.
    • Cultural understanding and language skills: This is essential for developing successful localized PR campaigns.
    • Network of contacts: Both teams support the shared build of media contacts. This can help get your foot in the door and for developing new opportunities.
    • Cost-effectiveness: Many times, the collaborative hiring of partner agencies costs far less than hiring two agencies separately.

    Related: 5 Ways to Connect and Network With Other Entrepreneurs

    5. Become more competitive

    The ability to work with companies around the world automatically increases your competitive advantage. It also means that PR agencies may be able to offer a wider range of services and expertise, including cross-cultural communication, international media relations, and global market research.

    Over time PR agencies develop skills and expertise to understand:

    • Cross-cultural communication: Communicate effectively with clients from other cultures. This means understanding the client’s culture, communication style and expectations.
    • International media relations: Build relationships with international media. This means understanding the media landscape in different countries and how to pitch stories to international journalists.
    • Global market research: Conduct market research in different countries. This means understanding the different markets in different countries and knowing how to collect and analyze data.

    Working with companies from around the world has had many positive impacts on our PR agency. From an increase in revenue, partnerships and international media, we have gained a deeper understanding of different cultures and how to do business in different parts of the world.

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    Sarah Evans

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  • 6 Strategies to Weather Global Market Shocks | Entrepreneur

    6 Strategies to Weather Global Market Shocks | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In today’s globalized world, businesses face many risks and uncertainties that can shake markets worldwide. These include economic recessions, political instability, natural disasters, pandemics, etc. Such events can significantly impact businesses, both large and small. Therefore, companies must develop effective strategies to weather global market shocks and remain competitive. This article will discuss business strategies to help companies weather global market shocks.

    1. Diversify your customer base

    The first strategy to weather global market shocks is diversifying your customer base. Relying on one or two major customers or markets can be risky, especially if these customers or markets are hit hard by a market shock. By diversifying your customer base, you can spread the risk and reduce the impact of market shocks on your business. This strategy involves exploring new markets, expanding product lines, and developing relationships with new customers.

    Related: How to Diversify Your Customer Base and Grow Your Business

    2. Build resilient supply chains

    The World Economic Forum’s Global Risks Report 2021 identified supply chain disruptions as one of the top 10 risks facing the world in terms of likelihood and impact. So a resilient supply chain is essential for any business to weather market shocks. Companies should have multiple suppliers, both local and international, to reduce the impact of any supply chain disruptions. They should also consider using technology to improve supply chain visibility and coordination. By building a resilient supply chain, businesses can ensure that they can meet customer demand even during market disruption.

    3. Maintain strong cash reserves

    Cash reserves are crucial for businesses to survive during market shocks. Businesses should maintain adequate cash reserves to cover expenses during reduced revenue. They should also consider lowering costs and delaying capital expenditures during market shocks to conserve cash. By maintaining strong cash reserves, businesses can weather market shocks without resorting to drastic measures such as layoffs or downsizing.

    A survey conducted by PwC in 2020 found that 56% of companies globally planned to increase their cash reserves in response to the pandemic. There isn’t any updated survey by PwC specifically on businesses’ plans to increase their cash reserves in response to the pandemic. However, it’s worth noting that the COVID-19 pandemic is still ongoing and continues to impact businesses worldwide. Many companies may continue to prioritize building up their cash reserves to prepare for any future disruptions or uncertainties that may arise.

    Related: Creating the 3-Bucket Cash Reserve System

    4. Innovate and adapt

    Market shocks can also create opportunities for businesses to innovate and adapt. Companies should constantly look for new products, services, or business models that can help them weather market shocks. This could involve developing new partnerships, exploring new technologies, or finding new ways to reach customers. By innovating and adapting, businesses can stay ahead of the competition and thrive during times of market disruption.

    5. Manage risk

    Managing risk is essential for businesses that want to weather global market shocks. Businesses should identify and assess their risks and develop a mitigation plan. This could involve diversifying investments, purchasing insurance, or hedging against currency fluctuations. By managing risk effectively, businesses can reduce the impact of market shocks on their bottom line.

    6. Build strong relationships

    Building solid relationships with customers, suppliers and other stakeholders can also help businesses weather global market shocks. Strong relationships can help enterprises to navigate challenging times by providing support, resources, and information. Companies should strive to build trust and foster open communication with their stakeholders to ensure they are well-positioned to weather market shocks.

    Related: 5 Ways to Build Killer Relationships With Customers

    In a nutshell

    In conclusion, global market shocks can significantly impact large and small businesses. However, companies can weather these shocks by developing effective strategies and remaining competitive. Diversifying your customer base, building resilient supply chains, maintaining substantial cash reserves, innovating and adapting, managing risk, and building solid relationships — can help businesses prepare for and navigate through times of market disruption. By implementing these strategies, companies can reduce their vulnerability to market shocks and emerge stronger in the long run.

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    Shoaib Aslam

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  • How CBDCs Will Transform The World As We Know It

    How CBDCs Will Transform The World As We Know It

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    Opinions expressed by Entrepreneur contributors are their own.

    Over the past couple of years, I have been working with my team at Broxus to develop the infrastructure necessary for central banks to deploy digital versions of their currencies. While we have been doing this work, and other projects have been engaged in similar endeavors, the dialogue around CBDCs has taken on something of a life of its own, colored by misconceptions about what Central Bank Digital Currencies (CBDCs) are and their purpose.

    At their essence, CBDCs are digital versions of a country’s fiat currency that are pegged at a 1-1 ratio with the original currency. For example, if the US were to release a CBDC, that would be in the form of a digital dollar that is always equal to its fiat counterpart. While CBDCs are related to cryptocurrencies and blockchain technology, some key distinctions exist.

    CBDCs are, by definition, recognized digital legal tender. That means that, unlike other similar digital assets like stablecoins, CBDCs carry the equivalent legal weight as fiat currencies. This is important as one of the main drivers of CBDC expansion is the shift occurring globally to cashless societies. As more societies become increasingly cashless, the current economic infrastructure has struggled to support local and international economies. CBDCs are a potential way of solving these issues.

    Much of the disconnect has arisen from many’s perceptions concerning cryptocurrencies, and the association CBDCs have in the public’s eye with cryptocurrencies. The truth is, while cryptocurrencies remain primarily speculative, CBDCs are something else entirely. Here, speculation plays no role. CBDCs, if instituted correctly, would be able to optimize financial systems that have grown outdated and been failing to meet the needs of the world’s most vulnerable demographics from a financial perspective.

    While the value of cryptocurrency is often tied to future developments and use cases, with CBDCs, the value is in the here and now. The utility of these digital currencies is something real, something that addresses shortcomings that are palpable around the world right now. I believe that the framework in which we discuss CBDCs needs to change so that ongoing efforts to integrate this technology into the fabric of the world economy may come to fruition.

    Related: $465 Million of Robinhood Shares Linked to FTX’s Sam Bankman-Fried Are in Question — What Now?

    CBDCs and universal basic income

    Social security systems of the 19th and 20th centuries have all required the construction of a significant state body to redistribute wealth. These bloated governance structures have generally not been able to adequately assist the people who find themselves in the more vulnerable spheres of society. To address this issue, an experiment was conducted in Finland that sought to provide a Universal Basic Income (UBI) to generally unemployed people. Rather than using a welfare model, benefits were given out in Finland through a €560 direct cash deposit each month. On the one hand, this provided direct support to those in need and, on the other hand, reduced the costs of collecting, accounting and spending funds that run high in welfare programs.

    The final results of the Finnish experiment are now in, and the findings are intriguing: the UBI in Finland led to a modest increase in employment, greatly improved results in the material well-being of recipients, and increased positive individual and societal feedback.

    CBDCs can be uniquely positioned to improve the performance of Universal Basic Income (UBI) programs. Since most of the launched pilot projects and prototypes for CBDCs are focused on a 0% deposit rate, i.e., a situation where CBDCs are subject to inflation and depreciation, central banks could gain more effective leverage in managing aggregate demand in the economy by collecting taxes and distributing part of them to UBI recipients. By issuing currency in digital form, central banks will be able to radically reduce the costs of the state to ensure the circulation of the national currency and social support for the population.

    Related: Regulated Blockchain: A New Dawn in Technological Advancement

    Reaching the unbanked

    In 2021, according to the World Bank Group, 1.4 billion adults were still unbanked. That is a massive portion of the world’s population, and the failure to provide these people with adequate banking services is likely to prolong poverty cycles and have a stunting effect on global economic growth.

    This problem is acute in South East Asia, and a good example of it can be seen in The Philippines, an area that we have focused on in our work. Just over half of the adult population in The Philippines has access to banking services. In a healthy economy, small and medium-sized businesses need access to banking services to thrive. With just over half of the population having access to those services, the Filipino economy cannot flourish, leaving the less affluent to bear most of the brunt.

    Related: Crypto vs. Banking: Which Is a Better Choice?

    Lowering the cost of money transfers

    The lack of banking services has led Filipinos to utilize alternative financial methods and seek work in other countries. Nowadays, remittances from Filipinos working overseas and sending money home account for 10% of the Philippine GDP or roughly 70-80 billion dollars. At the same time, the cost of money transfers is approximately 8-10% of the total amount of the transaction.

    Even here, CBDC technology can be effective in improving the situation. As part of our work in CBDC development, we have established a partnership between the Everscale network and DA5, one of the leading authorized direct agents of Western Union in the Philippines. The blockchain remittance service created by Everscale and DA5 will be the first technology in the Philippines capable of speeding up and lowering the cost of this process. As a result, people will no longer have to pay such high fees on their transactions once the service is launched.

    The first phase of the partnership will see the launch of Everscale’s new stablecoin, which will be tied to the Philippine peso. After the stablecoin is released, users in the Philippines can immediately exchange fiat for its digital counterpart at industry-low rates. But this is just a stablecoin; if The Philippines were to launch a CBDC, there would be benefits for all sectors of the economy.

    The privacy debate

    A common argument against CBDCs is their lack of privacy. However, this is only partially true: it can be shown that more centralized systems can allow more privacy than decentralized protocols. The bad privacy properties of Ethereum, in which states are made up of reused addresses, are widely known. In addition, users sometimes use uniquely linked domain names, making their transactions transparent to outside observers.

    There is a trade-off when designing decentralized protocols: complete on-chain privacy can lead to an inflation problem within the protocol that cannot be tracked – because the recipient and quantities are not known. A sidechain like Liquid gets around this problem quite simply: no more bitcoins can be created inside the protocol than were received at the input. In a centralized system, one trusted oracle can be provided that determines the boundaries of the issue.

    Centralized solutions based on Chaumian e-cash could use more advanced cryptographic methods to hide counterparties and quantities and selectively disclose this information at the request of the parties involved in transactions. In addition, there is no limitation on how privacy-enhancing features can be implemented since they are not bound to decentralized protocols with limited network resources and free space on the blockchain.

    Related: Web3, Crypto, Cybersecurity, Rural Fintech: Trends To Look Out For In 2023

    CBDCs as a vehicle for real and necessary economic change

    The issues above are not going away, and as countries worldwide continue to develop, the people affected by them are likely to continue to suffer. Quite simply, governments have never had the tools necessary to implement adequate benefits programs for those who need them. Now, however, that opportunity is here.

    That is the real utility that all of the efforts towards developing CBDCs are based upon, and that should be at the center of the discussion around this new technology.

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    Sergey Shashev

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