登录查看更多内容

Last updated on 2024年9月4日

What are the common pitfalls and challenges of doing business with emerging economies?

由人工智能和领英社区提供技术支持

Doing business with emerging economies can offer many opportunities for growth, innovation, and diversification. However, it also comes with various challenges and risks that require careful planning, research, and adaptation. In this article, we will explore some of the common pitfalls and difficulties that you may encounter when engaging in business transactions with emerging markets, and how you can overcome them or avoid them.

此文章中的业界达人

由社区从 6 条内容中精选。了解更多

Yusuf GUMUS, LL.M.
Simon Bedard

Business Sales & Acquisitions | Growth & Exit Strategies | Succession & Exit Planning

1 Legal and regulatory barriers

One of the main challenges of doing business with emerging economies is dealing with the legal and regulatory environment, which may differ significantly from your home country or other developed markets. You may face issues such as lack of transparency, corruption, bureaucracy, inconsistent enforcement, intellectual property rights infringement, contract disputes, and tax complications. To mitigate these risks, you need to conduct due diligence, consult local experts, comply with local laws and norms, and use appropriate contractual clauses and dispute resolution mechanisms.

添加您的观点

Yusuf GUMUS, LL.M.
举报内容
Navigating legal and regulatory hurdles in emerging markets demands vigilance against corruption, opaque practices, and bureaucratic delays. Intellectual property rights protection, tax complexities, and contractual disputes further complicate operations. Effective strategies include rigorous due diligence, local expertise engagement, adherence to local laws, and robust dispute resolution mechanisms. Compliance and adaptability are paramount for sustainable business ventures.

已翻译

赞
Simon Bedard

Business Sales & Acquisitions | Growth & Exit Strategies | Succession & Exit Planning
举报内容
Different culture and different legal systems can complicate issues. But it potentially a lack of recourse that is the underlying issue. If you cannot exercise your rights to capture the value you have acquired, then you should potentially reconsider.

已翻译

赞
Khurshid Khoja

Trailblazing Attorney | CEO, Greenbridge Corporate Counsel P.C. | VETS Policy Director | Expert Witness on Cannabis & Psychedelics | Past Chair, NCIA Board | Business & Regulatory Law
举报内容
In addition to complying with the local laws of the emerging market's jurisdiction, there may be applicable laws in your country of domicile that you must also comply with. In the US, the Foreign Corrupt Practices Act (FCPA) applies to American companies conducting business internationally. The FCPA's anti-bribery mandates make it a federal crime for US companies and their representatives to offer, pay, or promise to pay anything of value to foreign officials to obtain or keep business. The FCPA also criminalizes corrupt payments made through 3rd parties and agents, including attorneys, consultants, or business partners. Penalties include fines and up to 5 years' imprisonment for each violation or up to 20 years for willful violations.

已翻译

赞

2 Cultural and linguistic differences

Another challenge of doing business with emerging economies is overcoming the cultural and linguistic differences that may affect your communication, negotiation, and relationship building with your partners, customers, and stakeholders. You may encounter different values, beliefs, expectations, preferences, and behaviors that may influence your business decisions and outcomes. To bridge these gaps, you need to learn about the culture and language of your target market, respect their customs and etiquette, adapt your marketing and sales strategies, and use interpreters or translators if needed.

添加您的观点

Yusuf GUMUS, LL.M.
举报内容
Navigating cultural and linguistic disparities in emerging markets demands meticulous understanding and adaptation. Familiarizing yourself with local customs, etiquettes, and communication nuances is imperative. Flexibility in marketing and sales approaches is crucial, accommodating diverse consumer behaviors and preferences. Employing interpreters or translators facilitates effective communication, fostering stronger relationships and fruitful negotiations. Additionally, cultivating cultural empathy and openness enhances business agility and fosters mutual respect. Balancing cultural sensitivity with strategic objectives is pivotal for successful ventures in diverse markets.

已翻译

赞
Michael King

Innovative leader with a wealth of experience in the field
举报内容
Understanding different cultures and how they perceive taking offence is essential for doing business in any emerging market. In my opinion, this should be one of the first priorities before entering a new market. Due to the change in perspective, one culture’s way of paying respect can be another culture’s insult.

已翻译

赞

3 Infrastructure and logistics issues

A third challenge of doing business with emerging economies is coping with the infrastructure and logistics issues that may hamper your operations, distribution, and quality control. You may face problems such as poor roads, unreliable electricity, slow internet, limited transportation options, and inadequate warehousing and storage facilities. These issues may affect your costs, delivery times, customer satisfaction, and product quality. To overcome these obstacles, you need to plan ahead, research the local conditions, partner with reliable suppliers and distributors, and invest in technology and equipment.

添加您的观点

4 Political and economic instability

A fourth challenge of doing business with emerging economies is managing the political and economic instability that may pose threats to your security, profitability, and sustainability. You may face risks such as civil unrest, violence, terrorism, sanctions, currency fluctuations, inflation, recession, and expropriation. These risks may disrupt your business activities, affect your cash flow, and damage your reputation. To protect yourself from these uncertainties, you need to monitor the political and economic situation, diversify your markets and sources of income, hedge your currency exposure, and obtain insurance and guarantees.

添加您的观点

Khurshid Khoja

Trailblazing Attorney | CEO, Greenbridge Corporate Counsel P.C. | VETS Policy Director | Expert Witness on Cannabis & Psychedelics | Past Chair, NCIA Board | Business & Regulatory Law
举报内容
It's critical to consult any guidance offered by the government agencies responsible for conducting the foreign affairs of your country of domicile, specifically with regard to the foreign jurisdiction where you'll be doing business and the parties with whom you'll be doing business. Doing so will alert you to potential problems with your transaction, such as the existence of sanctions imposed by your home country upon the foreign jurisdiction where you intend to do business or the specific entities and individuals with who you'll do business. Criminal penalties for violating sanctions regimes can be severe, so counsel for US parties should confirm the absence of applicable sanctions with the US Treasury's Office of Foreign Assets Control.

已翻译

赞

5 Social and environmental responsibility

A fifth challenge of doing business with emerging economies is fulfilling your social and environmental responsibility as a global citizen and a corporate entity. You may face pressures from your stakeholders, customers, regulators, and competitors to adhere to high standards of ethics, human rights, labor rights, environmental protection, and corporate governance. You may also face opportunities to contribute to the social and environmental development of your host country and community. To balance these demands and opportunities, you need to align your values and goals with those of your stakeholders, adopt best practices and codes of conduct, and engage in corporate social responsibility initiatives.

添加您的观点

6 Competitive and innovative edge

A sixth challenge of doing business with emerging economies is maintaining your competitive and innovative edge in a dynamic and evolving market. You may face competition from local rivals who have lower costs, better knowledge, and stronger relationships. You may also face competition from other foreign entrants who have similar or superior offerings. You may also face the need to innovate and differentiate yourself to meet the changing needs and preferences of your customers. To stay ahead of the curve, you need to conduct market research, analyze your strengths and weaknesses, leverage your unique value proposition, and foster a culture of innovation and learning.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Business Transactions

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What are the common pitfalls and challenges of doing business with emerging economies?

1

2

3

4

5

6

7

1 Legal and regulatory barriers

2 Cultural and linguistic differences

3 Infrastructure and logistics issues

4 Political and economic instability

5 Social and environmental responsibility

6 Competitive and innovative edge

7 Here’s what else to consider

Business Transactions

给文章评分

感谢您的反馈

更多Business Transactions相关文章

更多相关阅读内容