Taking Your Business International?

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

Taking Your Business International?

by Alan Walsh on Jul 12, 2009

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Taking Your Business International? — Presentation Transcript

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