Working in Foreign Markets
How do those multi-national company’s do it? In the MBA classes, professors discuss and teach how to enter your goods and services into foreign markets. There are several step-by-step formulas to approach foreign nationals to gain access to their evolving consumer base. But what they don’t teach you is how to know ‘this be a snake pit’.
We Americans pride ourselves on ‘Doing the Deal’ to secure foreign markets in record time. That business model works well in North America and somewhat in the EU, plus Britain. However, it seems to fall short in South America. The wheels really come off the machinery when we start working with the Asian markets and India. For these markets, it is all about the relationship first, THEN they do business. For Americans, this approach is distinctly foreign.
We’ve watched North American companies for two decades race to Asian markets to open up shop and just start selling. After all, it works in the US, so why not everywhere else? Well, it doesn’t quite work that way. In fact, companies might want to re-think the price of admission to the Asian markets.
Entry to Asian Markets
First, you don’t get to ship your US-made goods in for sale since that is a drain on the target market. If you want to create products in a target country, you need permission and a manufacturing partner, approved by the government, of course. All a business must do is supply the newly assigned partner with all your blueprints and intellectual property. Then, they can begin cranking out merchandise. But that’s not all a company is required to comply with.
Apparently, there have been some naughty players in the past, particularly in China. Now foreign national companies need to register their accounting group and install the Aisino Intelligent Tax Software product to make sure that you are compliant with paying local taxes.
Aisino Intelligent Tax Software
Most hungry companies are in so deep at this point they figure why not? It seems there is a bit of a problem…