GLOBAL TRADE

INTERNATIONAL BUSINESS TRANSACTIONS
Human Relationship challenges in Global Trade

With increasing numbers of Asian manufacturers looking to export to North America, the issues and challenges that need to be understood by both Asian and North American parties are:

Negotiating International Sales Contracts
The question that must be addressed by the Parties is, "Can the manufacturer's operational capacity and capability deliver according to the terms of the buyers, "standard sales contract" in terms of quality, quantity, packaging and delivery.

Handling Disputes and Differences
In handling disputes Parties need to designate specific personnel and/or a department to handle and resolve disputes that arise. Clear steps need to be in place on how to establish facts and determine what constitutes sufficient evidence to prove or disprove allegations and arrive at practical solutions.

Good Teleconferencing Practices and Business Cultural Differences
Due regard must be given to understanding business cultural differences. A methodology for setting the agenda and rules of meeting need to be included in the "dispute resolution clause" within the standard sales contract.

Communication Styles
Allowance needs to be given for the different communication styles of individuals. In this regard an understanding of the work designation of individuals involved and their position within their organisational hierarchy need to be understood. For instance, a CEO of a small manufacturer may feel belittled by a middle level purchasing manager of a huge multinational buyer insisting on his point of view resulting in a dispute that arises not out of the business transaction but rather from a personality clash.

Business efficacy demands that parties do their homework on the track record, capacity, capability and business culture of their business partners in international trade. This information and knowledge must be taken into account in the drafting of "standard sales contracts".

Advise on and the sharing of "modern management practices" with business partners can go a long way in establishing long term profitable relationships.

Siddha Param
Corporate Consultant

siddhanet@yahoo.co.uk