TED'S TAKE: DIFFERENT RULES, DIFFERENT RISKS

Several years ago, I worked with a colleague involved in international trade. We considered doing a trade deal in the middle east involving medical and surgical supplies. In developing the financials for the deal, my colleague told me we needed to include funding in the budget for something I’d never heard of. I asked what it was. His response? Money to bribe the foreign public officials , a necessary part of the process to get things done there. When I pushed back, he said I needed to understand that we were not working the U.S. on this deal.  

We needed to do what was customary, required even, if we wanted to succeed.

When these situations occur, if we follow the rules of the other county, we are still subjected to the laws of our country. Thus, we must comply with our laws and be cautious not to circumvent the laws of the other country regardless of the business effects. We must take the safest course even if it means we will be less successful over there.

Conflicting approaches and business process can cause problems, even harm, if we engage with them but are not aware of other perspectives. We instinctively assume we are both playing by the same rules when that is not the case.

Message: If you’re doing business in another county, you need to understand the rules and comply.