This is the fourth and final part of my tips to help your international business. This post is going to address what is the most common problem I see in international dealings- failure to understand foreign business practices.

If you have gone through the first three parts of this, how to address cultural differences, how to address language barriers, and how to address foreign regulations, you are well on your way to more successful international business.

The last part of this is critical though. You may understand another culture, be familiar with the regulations in their country, and speak clearly, now you just have to understand how to conduct business.

My first tip is to let the other person set the pace. In some countries there is an extensive process of getting to know the other person before business can even be discussed. In other countries it is important to have a coffee, in others it could be a glass of vodka.

Secondly, try to find out what is important to them, and why. In some cultures this may be discussed openly while in others it is not. One time I was working on a contract for a phone company in the Middle East. It was very important for the top management to have training in Canada for their employees, and that there would be a lot of competition for the limited spots. While I understood it was important I only found out when the students came for their class that each student who made it actually got a raise in salary for having been on the class. No wonder it was so important.

Lastly, put yourself in the other person’s shoes. The reason international business is difficult is because it is complicated and risky. Anyone wanting to pursue an international transaction is probably doing so because they cannot find what they need locally (or if they can it is very expensive). The risks must be addressed properly because they apply to both parties. If you are selling something you need to be sure you are going to get paid, and if you are buying something you need to make sure that you will receive the goods. If either party does not live up to their end of the deal, it is incredibly difficult to resolve things. Anything that you can do to reduce the other side’s concerns is important.

When you are dealing in an international environment- one of the big complexities could be the fact that you are not only dealing with the regulations of your own country but that of the other country to.

If you are a manufacturer for example and you want to export your product to Europe you will need CE and RoHS certification. In my field of telecommunications, certain countries require homologation tests on your equipment, and there are many variations of these requirements.

The first and most important thing to get done when you plan to address a foreign market is to find someone who understands the regulations in that market. You may get all of your information from a customer, a distributor, an agent, a local lawyer, a goverment regulator, or maybe even the foreign country’s embassy.  It is no use trying to do business in a foreign market without understanding the constraints or additional costs you may face.

Once you understand the regulatory environment for your product or service, you still have another thing to address- the foreign commercial regulations. These include any banking or legal regulations which you will need to understand. For example, most countries allow for payment of goods or services with Letters of Credit. However, some places will not guarantee on this Letter of Credit. Other countries may not be allowed to pay for things other than in their local currency. This may or may not be a problem, depending on whether there are any restrictions on the export of currency.

All of these issues are not meant to dissuade you for working on international business, rather they illustrate the added level of complexities you will need to thoroughly understand.

If you are travelling to a foreign country, in many cases there will be language barriers to overcome. We must remember, especially if English is your first language, English may not be the first, or in many cases, even the second language of the person you are talking to. So here are some tips about how to address these language barriers:

• Speak slowly. I have sometimes found that when I am travelling internationally I speak in English at a pace which I would consider very slow- but it is the best way to ensure complete understanding. Remember that the person you are talking to is likely understanding you- translating your language into their own- interpreting the information, thinking about their reply- and translating it back.
• Do not use any slang- even if you are speaking the same language you may not be understood. For example, I could ask where the nearest “dep” is- if you are an english Montrealer you will probably understand me, but not if you are from anywhere else.
• Say exactly what you mean. That is, don’t use any sarcasm or other hidden meanings- in most cases they won’t be understood.
• If you think something is misunderstood, repeat it. 
• Learn some basic phrases in the language of the country you are going to. It is good to know basic greetings and thank you’s, as well as Sorry, I dont speak .

I hope this helps in your travels!

Any time that you are doing business in another place you will find differences between your home and the place you are doing business.

When you then try to do the same thing in another country it becomes more complicated. Cultural differences are one of the most obvious differences. Before you are going to travel to a foreign country, try to learn a little bit about the country’s history, culture, and religion. Wikipedia can be a good starting point. The idea is not to become an expert in the other country, but to familiarize yourself with the basic do’s and don’ts.

Here are a few tips- I will use my experience of Arab Muslim countries since that is what I am most familiar with.

• The first thing you will notice is that in a Muslim country it is common for things to take more time then a westerner will be used to. This is because people genuinely want to develop a personal relationship. The relationships you make then tend to last for a long time. Do ask about someone’s family once you get to know them a little.

• In many Muslim countries there is a call to prayer five times a day, and as religion is a very important part of life, it is not uncommon for people to pray five times a day. So don’t be surprised if your meeting is interrupted for a few minutes while this is done.

• In these countries, Friday/Saturday, Thursday/Friday, or sometimes just Friday are the days off. People tend to work in the morning- take a long break in the middle of the day (when it is very hot), come back after supper and work late into the evening. I have had meetings start at 8 p.m. and last until midnight.

• During the month of Ramadan there is no drinking or eating from Sunup until Sundown- so things tend to go more slowly during this time of year. Adjust your expectations accordingly.

• Alcohol is also forbidden by the religion, however, depending on the country, alcohol may be available for foreigners. My recommendation- don’t drink alcohol even if it is available. If you are dining with a strict Muslim this will be considered offensive.

Going a little bit off from the travel path, I will be discussing the complexities of international business for the next few posts.

International business is much more complex than doing the same business domestically. My experiences in North America are significantly different to my experiences in the Middle East, which is different than Europe, which is different than Africa.

So, in an international business environment- what are the main complexities to address? I think there are four main ones:

1. Cultural differences

2. Language barriers

3. Foreign Regulations

4. Business Practices

Each of these will be discussed in posts over the next week, along with tips on how you can address these issues.

I have done a lot of business dealings in many different countries. This post is not related to travel, but it is related to business.

My tip for the day is that the single most important thing to remember in international business is to understand that when you deal with a foreign company, what is important to you (or your company) is not necessarily what is important to them.

The more information you have about what is important to them - the better chance you have of your business dealings being successful-  because the more you understand what is important to them, the more you can sympathize with and inspire trust in the other person.In international dealings, trust is the key.

Here in North America we are used to complex legal arrangements because it is relatively easy to go after someone if they do not fulfill an agreement. However, in international environments the contract itself is less important then the trust between the parties for resolving any issues that will come up during the agreement. This is because if either party does not want to fulfill their end of the agreement- they can easily just stop doing what they are supposed to. At that point, if you want to take the legal route it is very complicated and expensive to begin proceedings in another country, and it is usually not worth the effort.

The fact is, in many projects or contracts you will encounter situations which are not catered for in the legal document so it is extremely important to have a good relationship and understanding with the other company you are working with. It is less important to have something written down then it is to understand what is important to the other company and to have a mutual understanding of how to work together.