The Market Entry Toolkit
by
Bill Decker
Copyright
2011 Bill Decker
Smashwords Edition
Smashwords Edition
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ISBN: 978–1–61061–064–3
CONTENTS
This course is organized intuitively and divided into sections. No, we can’t teach all you need to possibly know about how to pick foreign markets and how to correctly enter them with just this toolkit. But we can get you familiar with the issues involved and more knowledgeable about the processes and decisions that have to be made.
An Inventory of
Business Concerns Abroad
This section is meant to acquaint the
reader with many of the business issues your firm will encounter when
considering and choosing foreign markets. It is a checklist of many
of the pitfalls and obstacles abroad. It should serve as a good basis
of discussion when considering strategies in International Business.
LESSONS FROM THE ROAD: GLOBAL BUSINESS 1-2-3
This next section is filled with one-liners and anecdotes about International Business. It is an underground best seller!
AUDIO: HOW TO LOSE YOUR SHIRT ABROAD
This audio program (brought to you by The Lemonade Stand) presents an overview of the various ways your firm can be taken advantage of in foreign markets. It’s a classic “how not to” guide and we sprinkle in plenty of humor. This has aired on several stations in the USA and abroad and is an entertaining introduction to the difficulties involved in International Business.
This white paper defines the various modes of entry into foreign markets, discusses the pros and cons of each and is laced with many helpful examples.
MY ARCHIVE OF “HOW TO” ARTICLES FROM THE DENVER BUSINESS JOURNAL
These articles were published between 2005 and 2011 and contain “how to” strategies for companies engaged in global business. Most of this course will discuss market entry strategies; however, these articles include pieces on outsourcing, negotiation, and managing foreign nationals.
INTRODUCTION TO THE MARKET ACCESS SCREEN
This is a quick intro to describe the Market Access Screen and how it can help your firm.
This is a proprietary tool built to help firms compare overseas markets with some real criteria. This grading system will help a firm use objective data to examine the pros and cons of different markets. At the end of the exercise, users will have a raw score that they can use to back up their decisions. The Market Access Screen is a living document; one must be able to manipulate and modify it. It is available to you for free under “additional resources” below. The Market Access Screen was created after engaging in hundreds of international market entry deals abroad.
AUDIO: HOW TO USE THE MARKET ACCESS SCREEN
This is an audio program explaining how to use the included Market Access Screen. Though the Market Access Screen is self-explanatory, there may be a few terms and concepts that need further definition. You’ll notice that the various sound bytes are in order and numbered, starting with number 11.
Licensing your product or technology can often be the most profitable way into a foreign market. This checklist discusses all the points a firm needs to consider doing technology transfer or licensing deals abroad.
WHAT SHOULD BE IN ANY MARKETING PLAN
By now you’ve become familiar with the issues involved. You have received some education on processes to select a market and become aware of the pitfalls that await you. It is time to build a market entry plan. The outline in this section is a good way to organize the contents (and your thoughts) for that plan.
To download and use
the Market Access Screen, please visit
www.marketaccessscreen.com
How does a firm actually select a foreign market? How does a company figure out which overseas markets to sell its products? How does a company make an informed decision? What methodology can you use to make the process easier?
In 30 years of international market entry experience I’ve seen firms pick markets for the craziest reasons. I’ve seen CEOs choose France as a market because they want to go see the Eiffel tower! I’ve seen company boards pick England because “they speak English over there.” I’ve seen people read an article about China and then decide to launch their company in that market.
After traveling the globe for decades and seeing every possible mistake made (and making quite a few myself), I decided to develop a cohesive methodology for selecting and entering a foreign market – the Market Entry Toolkit.
I knew that a successful Market Entry Toolkit would have to provide a company with the tools to logically and systematically compare one market to another while allowing the company flexibility to modify its analysis for a customized solution.
The Market Entry Toolkit has to be very robust. Variables such as market size, culture, infrastructure, ability to exchange money freely and other factors must all be taken into account. The Market Entry Toolkit also has to consider the cultural fit regarding a firm, its products or services and the marketplace it is attempting to reach. At the same time, simplicity is important so the methodology can be communicated to CEOs, CFOs, Boards of Directors, sales people, staff and customers alike.
The Market Entry Toolkit is the result of thirty years of market entry experience involving hundreds of different deals and clients all over the world. I’ve worked in many markets while living on 4 continents.
The Market Entry Toolkit starts by acquainting the user with basic issues involved in overseas business. The Market Entry Toolkit then provides tips and pointers in an easy to digest one-liner form.
The Market Entry Toolkit then provides the primary methodology and framework to choose a foreign market – the “market access screen” – which takes the user step by step through the process and analysis.
You will also receive an outline of what an international marketing plan should contain, so that you can effectively build one yourself, once you have chosen the right foreign market.
The information you need is provided through audio, video, articles, podcasts, white papers and other media. As an example, the Market Entry Toolkit contains an audio program, with humor blended in, explaining “how to lose your shirt abroad” (the pitfalls of international business).
The user of this toolkit will also see dozens of articles; each one is relevant to a specific area of international business.
The Market Entry Toolkit is no substitute for good old-fashioned strategic planning, but hopefully it will bring insight, guidance and tools to firms wishing to expand overseas or needing to support the rationale for their existing decisions and direction.
Any tool is only as good as the person who is using it. Therefore the Market Entry Toolkit will help educate users so that they can be more effective as they work to plan and enter foreign markets.
As International Business becomes a necessary part of our global economy, more and more consultants are entering the arena. Some of the consultants out there are good, and some are simply frauds. The Market Entry Toolkit contains information helpful to find and evaluate expertise.
Once you’ve had a chance to use the Market Entry Toolkit, feel free to contact us for a telephone consultation.
And drop us a line to let us know how we can improve the toolkit.
Enjoy the journey,
Bill Decker
This is a listing of many (not all) of the Business concerns a firm will encounter when trying to gain markets abroad. Your industry may also have special issues and obstacles to consider.
MARKET RESEARCH: IDENTIFYING AND LOCATING BUYERS/ COMPETITORS/ MARKET FORCES
Are connections necessary in this market, and if so, is your firm connected in the market? Can you purchase these connections?
What is the size of the potential market, and is there an expressed market need?
What language does the market speak? Are there several languages or dialects? Do you have people who can communicate with them?
What are some of the available sources of information on potential buyers, written and personal, public and private?
How does one assess the reliability of the information and the source?
Is the market organized, can you find information? Where are the written sources located and how can they be obtained?
How difficult is it to obtain non-sensitive “inside” information about a company?
How might an organization which is a potential buyer be structured? What is the typical hierarchy and where is the power likely to lie?
Where in the organization will the decision be made to buy or not to buy your product or service?
If the decision will be made by a single person, what is the probable title and what responsibilities would that person have?
If the decision is likely to be made by a group or committee, describe it. Is one function (i.e. Engineering, Finance, etc.) likely to wield the real power?
What are the relevant issues regarding protocol when approaching a potential customer?
What is the best Mode of Entry into this market, and are you comfortable with it? (e.g. licensing, co-production, co-branding, direct export).
ADVERTISING
Is there an image of business, in general, that is expected? Is there an image of the particular industry that is expected?
What characteristics do potential customers look for in a vendor? What characterizes a tarnished business image–one that would not make it through the front door?
What is the attitude in general toward the USA and American products and services?
What is the attitude toward advertising? Is it an acceptable means of company and brand promotion?
In some countries marketers marshal an array of advertising media and techniques to secure public awareness of their companies and products. Are those same devices accepted in the country under consideration? Are there any distinctive differences in that regard?
Is there a point at which the amount of advertising becomes offensive, or so ostentatious that it is self-defeating?
Are there any cultural taboos regarding which media are used or, particularly, about message content, including choice of words, colors, and graphics?
Are there advertising/promotional media that are considered essential for the participant’s particular industry? (For example, if a European publisher is not represented at the Frankfurt Book Fair it loses prestige, reputation and, presumably, orders).
Can you re-purpose any existing advertising?
Do you need local advertising, websites, business cards, or addresses?
NETWORKING AND CONTACTS
Are introductions essential?
Are there ways to meet key people in non-business settings that are more effective or acceptable than other means?
What are expected networking methods? What are accepted means of developing acquaintances and friendships among potential customers?
What is the attitude toward mixing business with pleasure? What is the usual behavior in this regard?
Is business entertaining by vendors desirable, expected or resisted? Is there a point before which a vendor should not extend such an invitation in order to avoid risking a negative impression?
If business entertaining is acceptable, where is entertaining expected to be done? (At home, in restaurants, at the theater, at sporting events, or elsewhere)?
Is club membership important in meeting key business people? How easy is it to obtain such memberships? Is being an expatriate an advantage or disadvantage in obtaining club membership?
How involved does your family need to be?
Are there any cultural taboos regarding your gender?
SALES
Does this market require local sales talent?
In face-to-face meetings, are there any cultural conventions that the American sales person should observe?
Is the sales person held to a different ethical standard than is the population in general?
What are the possible negative consequences if conventions or standards are overlooked?
What traits or qualities are considered admirable for a sales person to display?
What behavior is considered to be offensive?
Sales people in any culture must be assertive to a degree. At what point does assertiveness become interpreted as aggressiveness in this culture?
Are there specific selling techniques in this industry that are particularly effective in this culture?
How important is call preparation? How would a typical business person react to a sales representative who spent significant time during a face-to-face meeting asking basic questions about the company’s products, markets, etc.?
Is it necessary to work with administrative assistants? If so, what are some acceptable ways of winning over the administrative assistant or secretary who can block the sales representative’s access to a key decision maker?
How widespread is the use of American English in commerce?
How serious is a lack of fluency in the customer’s language or dialect?
Is there any significant benefit to speaking the customer’s tongue?
American business conversation is liberally sprinkled with sports metaphors.
What metaphors are commonly used in the culture under consideration?
THE PURCHASE DECISION
Is this an individual or collective decision?
Is the time taken to close a sale proportional to the value, size and complexity of the sale? Are negotiations conducted expeditiously or is the tempo slower, with the negotiations more formal and choreographed than in the U.S.?
What behavior might be interpreted as “American impatience,” and what would the reaction be?
What might be telltale verbal or nonverbal signs of indifference or hostility?
What are the key criteria leading to the first repeat orders? What priority might be assigned to?
• Reputation of the vendor
• Perceived quality of the product/service
• Perseverance
• Dependability y of the vendor, e.g. timely delivery
• Kickbacks, bribes
• Personal qualities of the company representative: personality
• Trustworthiness
• Responsiveness to requests, complaints
• Other
• Customer intimacy
Are there any unique aspects of the country’s commercial code (Napoleonic Code vs. English Common Law, for example) which will affect the Document of Sale?
Are contracts used?
What are the standard provisions in sales contracts?
CUSTOMER RELATIONS
Other than consistent timely delivery of quality products or services, what are acceptable means of maintaining good customer relations?
Gifts? Personal or with business logo? When?
How do you balance gift exchanges with your personal and company ethics?
Entertainment? What kind?
Favors asked by the client?
Extended time spent together?
What kind of relationship does your customer expect to develop with you?
How is this relationship built and maintained?
What does the customer most value in this relationship?
What are the limits of the relationship?
How frequent is on-going customer/vendor contact for the purpose of maintaining the relationship?
How much information of a proprietary nature does your customer expect and want?
LOGISTICS
Can you get money in and out of the market?
Do you need to sell directly or through intermediaries?
Is the government a barrier or an aide to your progress?
Can you travel to the market easily?
Are the amenities necessary for you to conduct business available?
Are offsets or investments required?
Are there quotas on your product?
Is your product being sold into a protected industry?
Are their prohibitive tariffs?
How will you handle disputes? Is this a pay-in-advance country? If not, are the players creditworthy?
Do you need a local partner?
Will in country production be demanded?
Are licenses easy or difficult to obtain?
Is E-commerce practical in this market?
NEGOTIATION STYLES
Are negotiations structured or loose?
How long do negotiations take in this market?
Can your firm invest enough resources to negotiate properly?
Are negotiations firm, or do they continue throughout the life of the relationship?
LESSONS FROM THE ROAD:
GLOBAL BUSINESS 1-2-3
The trouble with using experience as a guide is that the final exam comes first.
There are many roadblocks to success when doing business internationally. Mind sets are different, laws are dissimilar (and difficult to enforce) and cultures and communication styles vary regionally and from country to country.
Veterans of global marketing and cross-cultural problem solving can easily argue that the only true toolkit is expertise. Whether you gain it on your own, or hire it as needed, your traditional domestic business acumen will not suffice for success abroad. This myth of “business is business” has cost untold billions of dollars, jobs, time and pride.
Much of the traditional literature on international business overlooks the one key question: “Who do you know?”
Example: country “A” may be a huge market, but your firm’s contact in country “B” is very strong. As business is only done by relationship, your results will be greater in “B” while “A” may be unavailable.
This next section contains lessons from the road learned through two decades of international marketing, management and negotiation. The road spanned 72 countries on 5 continents. Some of the tips are controversial; all of them are necessary. This guide will provide road signs for your next endeavor in international business.
This next section can’t teach you everything you need to know about global business but it will increase your mileage, and point out those avenues needed for growth.
Please contact us regarding quantity purchases of this next section, consulting and speaking services, or market entry assistance. We want you to ride with style.
GLOBAL BUSINESS QUIZ
Q1. How might an Asian firm learn about its American competitors?
Q2. True or false?: Bribes are illegal.
• A contract is your best guarantee of compliance.
• Agents are a no-cost, effective means to penetrate a foreign market.
• Value is value, and the best value usually wins.
• Japanese electronics are less expensive in Japan than in the USA.
• My Spanish-speaking staff should be deployed to sell to Spanish-speaking markets.
• Once a firm has achieved foreign distribution, it has very little chance of failure.
• The American system of business is greatly admired and imitated around the world.
• Email, faxing and conference calling have eliminated the need for costly travel.
(answers at the end of this section)
INTERNATIONAL PROVERBS TO QUOTE AND THINK ABOUT
A wise person hears one word, but understands two.
—The Talmud
How a society treats its lowest members is a measure of its merit.
—Scandinavian proverb
If you are going to tell the truth, have one foot in the stirrup.
—Turkish proverb
The fat pig gets slaughtered.
—Chinese proverb
The tall blade of grass gets cut down.
—Socialized countries’ expression
In Russia, a real man does not negotiate.
—Russian rule of thumb
It is not what you know, it is who.
—Everyone, much truer internationally
We can always fool a foreigner.
—Chinese proverb
When someone has no family, he is considered unlucky.
—Southeast Asian proverb
The nail sticking up gets hammered down.
—Japanese proverb
Love is the food of life, but travel is the dessert.
—Singaporean proverb
We don’t care about the package; we care what is IN the package.
—Dutch proverb
If you don’t shoot, you always miss.
—Dutch proverb
Observe, then imitate.
—Japanese motto
In Europe, white men go into rooms and decide how markets will be divided. In Asia, the market decides for itself.
—Nihon
Kezai Shinbun
(Japanese Economic Journal)
Necessity is the mother of invention, desperation is the father. But assumption is the brother of all screw-ups.
—John Kuranz
In times of great trouble, you are allowed to walk with the Devil... but only until you have crossed the bridge.
—Bulgarian proverb
When I am weak, how can I negotiate with you? When I am strong, why should I?
—Arab proverb
After we have clothes on our backs and food on our tables, then we worry about ethics.
—Chinese proverb
A small boat turns back faster.
—Asian proverb
Look around the corner, see what is there.
—Israeli proverb
Business is managing mentalities.
—French proverb
To travel effectively one needs only two things: patience and a willingness to learn.
—Confucius
Outsourcing is no substitute for innovating at home.
—Unknown (American)
We are slaves to our history.
—Greek proverb
If you are connected, you can get in.
—German proverb
Americans are superficial.
—Every European I’ve ever met
Americans are the only people in the world who do business with strangers.
—Bill Decker
GENDER ISSUES
In the USA “women in business” is surrounded with change, excitement and controversy. In the USA we like to discuss our controversial issues. We even put our problems on television!
Most cultures are vastly different about discussing their changes in thinking and their changes in culture. “It’s a man’s world” can hold true to a greater extent overseas than in the USA. Women in global business (often) face unfair challenges, such as:
In Asia, women often are not present at business functions.
It is difficult for many cultures to fathom that a man can be subordinate to a woman in business.
Many men are completely unfamiliar with women in business altogether.
You will usually be negotiating with men when you are abroad...and only men in the Arab world and most of Asia.
Many languages have a masculine and a feminine form. The feminine form is often more indirect.
When a businessman travels with a businesswoman, many only see a businessman.
When you discuss what is “politically correct,” you might ask: “whose politics?” Derogatory remarks may be more cultural than personal.
Example: “In your country you treat the women as citizens. In ours, we treat them like women.” —Greek expression
Ms. is usually Ms. understood.
CULTURAL AWARENESS AND UNDERSTANDING
The single biggest difference in cultures is the perception of “time.”
Example: the English language has words to express time that no other culture has: personal time, overtime, spend time, waste time, borrowed time, double time, time is money, and time-and-a half.
Get a cultural guide wherever you go: Someone who has “been there, done that.”
If there is no relationship, assume no trust.
The sense of shame (losing face) can be a matter of life of death.
Example: my Karate instructor used to compete in death tournaments. When asked what would happen if he lost, his answer was that he would rather lose than face his family and friends.
Make sure you have an “Uncle.”
Example: when an Asian boy disagrees with his father, he cannot confront him. He uses his uncle to intercede. This way, there is no loss of face. This model applies for business in Asia as well.
When Asians are embarrassed, they laugh.
A friend is someone you will lie for.
Chinese will greet each other by asking: “Have you eaten yet?”
The USA is the only country in the world that refers to a national sporting championship as “The World Series.”
Americans see history as in the past. Europeans feel they are part of history.
“Rude” and “Polite” are cultural.
Many people you interact with may look, dress and speak like you. The similarity ends there.
In Europe, coffee means hello. In Asia, it’s tea. In the third world, it’s food.
Show me a country’s eating habits, and I’ll show you its culture.
Example: Americans and Northern Europeans have a concept of “my food.” Elsewhere, food is shared, often eaten from common plates.
Never expect them to hear what you hear, see what you see, know what you know, or assume what you assume.
Every country has its hierarchies.
Example: in Asia, the older you are, the more respect you deserve. Nodding may mean: “I’ve heard you,” not “I agree with you.”
“Unethical” does not exist.
Ethics are a suit of clothes...yours are different than mine.
Never thank a Central or Eastern European for “their time.” It will make their colleagues suspicious.
Many cultures have difficulties putting things in writing.
Politics, Religion, Sex and Business. Americans like to separate these ideas; the rest of the planet groups them together.
Example: many countries stamp their citizens’ passports with their religious classifications.
Example: you may be asked about your marital status and political beliefs. In many parts of the world, religion will surely be a topic.
Power distance is the perception of a leader’s importance.
Example: the USA has low power distance. We call our leader “Mister,” and joke about him every day. Iran has the highest power distance. They call their leader Ayatollah (reflection of God).
Content cultures concentrate on exactly what was said or done. Context cultures focus on who said or did it, and under what circumstances.
Example: you can always spot the highest- ranking person at a Japanese (context culture) meeting...he is sitting farthest from the door.
Independent cultures admire entrepreneurs and loners.
Collective cultures look at groups for identity.
Example: Koreans advertise cigarettes by showing groups of men smoking. In the USA, we have the Marlboro man: alone, tough and fearless.
Task Specific cultures judge the value proposition offered.
Relationship Specific cultures value the quality of the relationships. They have fewer friends, and greater loyalty to them.
Example: cold-calling is an American phenomenon. It doesn’t really exist elsewhere, as almost all other cultures are relationship specific.
Monochronic cultures do one thing at a time.
Polychronic cultures do several things at once.
The difference between public and private varies from culture to culture.
Example: many Northern Europeans use their first initial on business correspondence, so you cannot determine the gender of the author. It is private and irrelevant.
Business is done by introduction, and most cultures are very careful about giving them.
Example: in an extreme case, I was walking in Madrid with a Spaniard. We ran into a friend of his. He stopped and spoke with his friend for 5 minutes, without introducing us. This was natural to both Spaniards.
The system is more important than the people.
PLANNING
The first question is: “WHY?” WHY are you doing business there, WHY have you chosen your mode of entry and most importantly, WHY will they work with you?
When entering a foreign market, you must ask: “How much are you willing to lose?”
Use the “double-double” rule...it will cost twice as much and take twice as long.
You can’t do international deals without educating your deal makers on how it’s done overseas.
Determine your own moral line, even if you do not express it.
Figure out what you mean by “Western,” “Central,” and “Eastern” Europe before using those terms.
Americans usually make their business trips too short.
Never make assumptions about security.
Having an employee who speaks French does not mean you have an employee who can do business with France.
In countries you visit, look for context umbrellas. Perception is often limited to what realities exist under them.
Remember, there is no such thing as “the international market.”
LANGUAGE (TRANSLATING/INTERPRETATION)
If you want to sell me something, you had better do it in my language.
Language is the single biggest cultural barrier.
Humor rarely translates.
“American” is not the international business language. American euphemisms like “pass the buck” and “off the wall” have no meaning abroad.
Many Asian cultures have no words for “yes” and “no.”
Someone who speaks English and Thai is not necessarily a translator.
Translate, and then “back translate” (into the initial language).
Always use your own interpreter, not theirs.
Pick a title that can be translated. The same is true for a product name.
Translate your business card.
SALES AND MARKETING
U.S. firms will start the marketing process by asking: “What problem is solved by our product?” Overseas firms will start by figuring out who they know in a given market.
Many American companies worry about their competitors. Asian companies worry about their customers.
Most companies will work with their established vendors to fix problems. Americans will switch vendors more quickly.
Example: a British firm bidding for a project in Japan found that the client revealed their bid to a local (Japanese) competitor.
Assume everyone knows everyone...especially in your industry.
Extreme example: in business school, a colleague from New Delhi once told me that if a student from India were to arrive at our program, there would be a 90% chance that he knows him or his family. The professional community is very small in India.
When Asian business isn’t done man-to-man, it is done family-to-family.
Getting a permit to build a store in Malaysia does not mean you can open your shop. Shops exist on streets, in cities, not on federal land.
A European food distributor once asked me: “If we carry your product, what will happen to the products already on the shelves?”
Many European governments need high European product content in their purchases.
In South America, Europe, Asia, Africa and the Middle East, you will be dealing with governments.
You may know your industry and all about your company. Do you know your target market? One question I always ask: “How often do you take your distributors to dinner?”
In Central and Eastern Europe, the secret was never selling; the secret was always buying. Beware of de-facto partnerships. If “everyone knows” you are negotiating with a certain company, it will be assumed you are partners.
When picking partners remember you often get only one chance. A failed deal can close the market forever. Take your time. After all, would you rush into a marriage?
NEGOTIATING
Many cultures believe a contract comes first and then negotiations begin.
Silence does not imply consent.
You will often negotiate with groups.
Consensus is important in socialized countries.
Japanese work out all of the potential problems first, and then make a deal; Americans do the opposite.
In meetings, everyone seems to look at the person with the calculator.
Learn a few words of their language, at least enough to apologize for not speaking it.
“Face” is crucial in Asia. Humiliation can cost you your business, and often much more.
Example: even when dating, Asian men will often ask a woman for a date through an intermediary. Thus, there is no loss of face if she declines. She will decline via the messenger.
Try to ask: “What does success in your market look like?” It will be a direct question, but one easily answered.
Many countries consider a handshake to be a commitment.
Americans and Western Europeans are said to “say what they mean, and mean what they say.” With other cultures, this is often not the case.
Expect to eat when you discuss business.
Learn to draw pictures and charts to demonstrate your points. (Upside down) Communication is not what I say; it is what you hear.
MANAGING STAFF FROM OTHER COUNTRIES
A U.S. firm located in Germany is neither an American firm nor a German firm; it is a very different hybrid.
Use paternalism instead of confrontation to motivate employees.
Have foreign employees write a synopsis of what they have been assigned to do.
American managers look for additional skill sets; European managers look for employees that will “fit in.”
Jobs may be more important than profit.
Example: in Poland, small towns look at plant managers as “employers.” How will you motivate the managers to lay off staff?
Europeans and Asians will often reward loyalty rather than merit.
Example: Asians will often advance within companies because they show blind obedience to superiors.
The myth of working at one company for life still exists.
Often, HR can’t fire foreign workers.
Example: many employers in Europe commit to paying 60-80% of an employee’s salary after termination. You may be stuck paying employees until they find another job! Did you ever wonder why there are locals in the pubs all day in Europe?
You will work Saturdays in Asia.
In the third world, one must pay local wages.
Example: in a factory in Central America, we were paying twice the local wage. The workers would get their pay, take an additional month off (without telling us) and return one month later expecting their jobs back!
Chinese bosses are said to have a “velvet fist.”
Europeans cannot work together until they have discussed the war. (WWII)
LEGAL
The relationship is more important than the governing laws.
Example: if you manufacture in Asia and your first shipment is defective, it means you must work on the relationship.
In many overseas cases, a lawyer’s presence can mean: “I don’t trust you.” If you need to bring attorneys have camouflage business cards printed.
When a product injures a consumer, an American will hire an attorney to obtain satisfaction. Europeans will go to their government.
Overseas you have absolutely no rights. You are a guest...often an unwelcome one.
“Overtime” can be illegal.
There is no debt on Chinese balance sheets; debts are personal.
Polish tax inspectors receive commissions on what they find.
There is no such thing as “international law.”
QUESTIONS TO ASK YOURSELF
How do you know when you are “in?”
Is this the Brazilian way of telling me that you don’t want to do this? (Pick any nationality)
Do they respect my authority?
I know our way of doing this, but what is their way?
Have I heard this correctly?
What assumptions might be underlying their actions?
How can I relate to the people in this country; what steps can I take to do so?
Who does my “employee” work for?
How do these people handle food? Is there a way to understand the culture from it?