Global Biz Review

Negotiating International Contracts
Appreciating culture & practices

There is plenty of business to be done in the Americas, Asia, Europe and Africa. However, understanding local business culture and practices can go a long way in making a venture successful and mutually profitable.

When a Business decides to export or import goods and/or services internationally the issues and challenges that need to be taken into account in the negotiation process both before and after entering into the contract includes:

Capacity of parties to deliver on promises
It is important to do your homework on the operational capacity of your business client/partner to deliver on their legal obligations under the terms of the contract.

Disputes Resolution Mechanism
In the event of disputes you should have an established mechanism to resolve issues and implement practical solutions in a timely and cost effective manner.

Understanding Communication Etiquette
In all communications with the other party including through e-mails, teleconferencing and documentation, it is important to be sensitive to local cultural practices. This is especially true with regard to communication etiquette in relation to the position and designation of individuals nominated by the respective parties assigned to handle issues under the contract.

Communication Styles
Allowance needs to be given for the different communication styles of individuals. Using commonly accepted trade terminology and practices could go a long way in reducing miscommunication.

To profit from global trade it is important to do your homework on the prospective party and the local economic realities. A Business Knowledge Coach could assist you in this area. Too often a lack of understanding of the local business culture kills the goose that lays the golden eggs and an opportunity for long term profit is lost in a quagmire of personality clashes.

Siddha Param 
International Business Consultant
Winnipeg, Manitoba, Canada, North America
The geographical centre of the worlds’ largest market. 

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