Walsh Enterprises Business & Financial Advisors
Huntington Beach, California USA
http://www.awalsh.us
walshal1@aol.com
(714) 465-2749
Taking Your Business
International?
Reprinted from a blog posted December 2008 at
www/walshal.wordpress.com

I was recently approached about preparing an audio/video presentation
for a Global Business internet broadcast show. In considering the
content, it occurred to me that this subject would make a good blog…
If you’re planning to become involved in international commerce, think
about establishing contacts with the diplomatic legations of the countries
you’ll be trading with.
Countries, like individuals, operate on self-interest; and their diplomatic
corps can do a lot to smooth business relations if they see it as being in
their national interest.
For instance: If you’re selling something they see as beneficial to their
country – or if you’re planning to export their goods – or if you’re
planning to set up operations in their country that create jobs – they will
see a benefit in helping.

My first experience in these matters was with a large international
engineering & construction company that was planning to build power
plants in two developing Asian countries. The diplomats helped arrange
financing, cut red tape, smoothed the importation of construction
materials, and generally made the whole process go easier.
Later, I was involved with a project to introduce low-cost modular
housing to Central & South American countries. Again, the diplomats
helped us make critical contacts in-country, smoothed the permitting, cut
corners on materials importation, helped identify sites, provided
translation services, and provided a host of other assistance.

Another example is when we designed self-contained portable air traffic
control systems that could be loaded on a heavy truck, driven into an
airplane, and set up anywhere in the world within hours. This had civil
and military applications, so we attracted a lot of offshore
interest. Diplomats were eager to help. We even had one national leader
involved. I can point to other examples including medical/biotech
applications, offshore production, import/export, and so on.
It’s just good business to make contact with the foreign diplomats. Some
would consider it common courtesy. Even if you’re planning to do
something that doesn’t necessarily fit their “high-self-interest quotient”,
they can help you understand their laws and methods; and you don’t
want to stumble into other countries without this knowledge. Eventually
you will have to deal with foreign officials in some capacity; even if it’s
only border officials. If a problem arises, it will help if you’re already on
their radar as a known entity.

• Start with the local legation, and tell them that you just want to
introduce yourself to their trade representatives; they’ll direct you
from there.
• If you’re a small business, and your initial business volume will be
small, you won’t attract a lot of attention unless you’re offering
something that they see as being a really “hot commodity”. Make the
contacts anyway. It can’t hurt, and it will probably benefit you
somewhere along the way. You might be surprised at the benefits.
For instance, trade legations periodically sponsor trade shows where
you could make a lot of contacts and get visibility. If you’re a known
entity, you can get invitations.
• If you’re selling something and you want the customer to provide a
Letter of Credit (in China for instance), you’ll discover that the smaller
banks sometimes don’t have much sophistication in such matters.
This can create a lot of complications. A foreign legation can help
identify banks that are experienced in such matters.

The world is getting to be a smaller place, but some countries still
have complex currency rules, and other regulations that you need to be
aware of. Again, a foreign legation can help.
There are many foreign businesses who offer to educate you and smooth
your business transactions for a hefty fee. Why pay them if a foreign
legation will provide the same services for free?
Foreign commerce can be tough enough. Use every resource at your
disposal