Global Business:
International Residential
Professor Philippe Jorion



Tips for Belgium: Essentials

Here is a list of tips for our forthcoming trip to Belgium.
Be forewarned that these reflect my own biases on cultural aspects of Europe and my own travel experiences.


1. Money

The euro has become the official currency of most of continental Europe since January 1, 1999. You will find that the cost of living in Europe is comparable to that in the U.S. (Britain is much more expensive). By now, ``euro'' notes and bills are in use in the Euro-12 zone (the European Union of 15 except UK, Denmark, and Sweden).

What to take
* The most efficient way to obtain foreign currency is to use your U.S. VISA or ATM card in the foreign country. Check with your bank that the ATM card can be used in Belgium, or France, or Holland, or wherever you go. These offer many advantages:
a) the conversion rate is much better than exchanging cash (which typically has spreads of 5-15%, versus 1-2% for VISA conversions which are done at bulk rates)
b) better control of expenses and less cash to carry.
* Travelers checks can also be used, but still face some substantial costs (e.g. 5% to buy checks in US, then about 5% to exchange US dollars into European currency). Using foreign currency-denominated travelers checks is usually cheaper, as major banks exchange them free or with a low fee (2-3%).
* Cash It is also advisable not to convert too much in foreign currencies, as converting back into dollars adds to the cost. The other parameter of this inventory problem, of course, is the cost of being caught in a foreign country without cash.

Where to change
* Generally, the best rates are offered by banks. Beware of business hours, as banks are usually closed for lunch (12-2pm). Banks rates can also vary widely, so it always pays to check first the cost at the cashier, or to ask the advice of locals.
* Airports bank tellers give you convenient access to cash but unfavorable rates in Brussels. I would suggest to buy some BF immediately at your arrival, while waiting for your luggage (remember, things are often slower in Europe).
* Hotels are systematically more expensive than banks, with spreads on the order of 10-20%.
* Kiosks can vary in cost, depending on competition. When group together (such as on Brussel's Grand Place), rates can be competitive.


2. Clothing

Preparing for climate
Belgium has a maritime mild climate. It could be 60 and pleasant or 40 and rainy. It is often cloudy, like in northern California. In the winter, the temperature rarely drops below freezing.

It is safe to assume it will rain. A rain jacket and umbrella are a must. You can bring back one of the large European Union umbrellas (blue with golden stars), which are quite nice and useful.

What to wear
The dress at the residential is European casual (i.e. no shorts nor jeans). Remember that as you go from the West Coast to the East Coast to Europe, clothing habits become more conservative. In case of doubt, it is better to be overdressed. For plant visits, which may involve meeting high-level executives who are formally dressed, the dress is more formal, with at a minimum sports jacket and tie.

3. Electricity

Most of Europe operates on 220 volts, 50 Hertz. This means that your electric equipment may not work on European current. Laptops, however, are generally built to accept 220v, provided you take along a simple $1-2 plug converter; plugs in Europe are round and wider apart than in the U.S. These can be found in any Radio Shack store. For some other equipment, you may also need a transformer (220 to 110), which costs $10-20.





4. Phone

Modern hotels usually have standard plugs for room phones.

More importantly, calls placed from Belgium may cost 3 times the same call originating from the U.S. Hotel calls are also more expensive than phone card calls. It is therefore essential to take a phone card (AT&T, MCI) and ask the access number in Belgium. To give you an idea of costs, a 4-minute hotel call may cost about $12, but only $8 with an MCI card.




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© 2003 Philippe Jorion. ALL RIGHTS RESERVED.