Going
Global
&
Taking the
World by Storm
To use an Americanism, the reality is that the world is now “glocal”. As a result of the
internet and other business links, Japan, South Africa, Brazil and Qatar are all countries
that are now within reach of even the smallest of businesses with the right connections.
However, with expansion comes risk, along with the potential rewards.
Defending against the gaps
It is important that your relationships with the parties overseas (be they suppliers,
distributors and/or agents) is accurately documented. A contract within other territories
should be on terms that you know and, most importantly, understand. For example, it is
very difficult to enforce intellectual property rights in many countries (such as China) and
you may find yourself commissioning packaging and manufacturing of your products
overseas (with all the cost saving benefits) only to find out that the same manufacturer is
copying your designs for a lower quality competitor to use. Were this to happen to your
business, it would not only be incredibly frustrating, it could also be very damaging to your
sales and your brand image (people may confuse the cheaper product for your own).
You may have heard the tales of golf clubs being made in China and some lower quality
branded ones “finding their way out the back door”. Whilst some people may buy the
“knock offs” knowing they are lower quality, others may associate these poor quality
imitations with your company and this could damage the reputation of your goods.
There are also the more challenging local cultural issues that you and your contacts may
face. People often refer to “customary payments” that may need to be made for goods to
move in and out of a country. Whilst they may seem legitimate based on your discussions
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