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TAKING ADVANTAGE OF THE EASTERN EUROPEAN MARKETS
TAKING ADVANTAGE OF THE EASTERN EUROPEAN MARKETS By Steve
McLaughlin (1,045 words)
For some of us, the image of Nikita Khrushchev banging his shoe
on the podium of the United Nations in the early sixties and
uttering the words "We will bury you" is burned into our minds.
For others, Ronald Reagan standing in front of the concrete and
barbed wire monstrosity separating East and West Berlin and
saying: "Mr. Gorbachev, tear down this wall!" echoes
resoundingly today. Solidarity in Poland, the uprising by the
freedom fighters against the Ceausescu regime in Romania, the
general sweep of freedom as oppressive governments toppled one
by one... these are events burned in memories all over the world.
Well, the wall is down; and for the most part Communism is a
thing of the past in Eastern Europe. While there are still parts
of Eastern Europe that are in considerable turmoil, much of what
was formally part of the Soviet block nations - including a
great deal of the former Soviet Union itself - is becoming an
extremely important part of the European Union, and of the
global economy. Tens of millions of potential customers in both
the consumer and business markets are looking for goods and
services that were both unavailable to them until recently and
which their own business infrastructure is unable to provide
them with.
While, for the most part, the Eastern European markets are wide
open and invite trade with the West, it is necessary to remember
that doing business there is not like doing business in the
United States, or even Western Europe. In large part because of
their recent history of oppression and the fact that to most of
these countries free enterprise is a new and unfamiliar concept,
businesses face unique challenges when doing business in Eastern
Europe. However, while these challenges can certainly appear
formidable, the key to overcoming them is knowledge, and
understanding. Just a few of the most significant challenges you
are likely to face include:
1. Cultural Differences and Diversity: While there are many who
talk about Eastern Europe or former Soviet Block nations as
being a single entity, nothing could be further from the truth.
Doing business in Poland, for example, is not the same as doing
business in Estonia - the same way doing business in China isn't
the same as doing business in Japan. Eastern European nations
each have their own rich and unique history and culture and
because of this each have different and often times complicated
customs and protocols when it comes to business transactions. To
effectively compete in Eastern European markets, it is necessary
to be aware of the "do's" and more importantly the "don'ts" of
doing business in each individual country.
2. Government Regulation: While it is certainly safe to say that
the citizenry of most Eastern European nations currently enjoy
more freedoms and live under less oppression from their own
governments than at any time since the end of World War Two, the
same cannot always be said for Western companies attempting to
transact business there. Because many of the governments of the
Eastern European nations are far less than two decades old,
there is very often less stability in
their rules and
regulations than you will find doing business with nations where
the governments are older and, therefore, better established.
Tariffs, import/export taxes, customs regulations, the level of
governmental intervention in a specific business transaction -
all these and many other facts can change literally overnight.
To adequately protect your profits, a thorough understanding of
the governments you are involved with is crucial. It is not
enough to know how things are now - you must also understand how
things were last year, and have a reasonably good idea, based on
recent trends, of how things will be tomorrow.
3. Negotiating Strategies: As we all know, the purpose of
business negotiation is to get the best deal you can possibly
get, and thereby increase your profit margin, while at the same
time offering the individual or company you are negotiating with
a deal that they can live with as well. When negotiating a
business deal in Eastern Europe, there are several questions you
should ask yourself: * What is the general sentiment of the
government and people towards the United States? * How do the
local ethnic and religious customs affect negotiation? * How
stable is the government and/or business environment in the
country - and even the region of that country - you are looking
to do business in. * Are there any ethnic, cultural or religious
prejudices you need to be aware of (example: is there a strong
sentiment against Western Europe in the area you are looking to
do business in).
The single threads that run through dealing with the above
listed challenges - and which is crucial to dealing with the
many other challenges you will face doing business in Eastern
Europe - are knowledge and understanding . One of the things I
have learned in my years of consulting and advising businesses
of all sizes on how to trade in Europe is that it is virtually
impossible to have too much knowledge with regards to the
diversity and rich cultural and ethnic differences that exist
between Westerners and Eastern Europeans, and also between
Eastern Europeans themselves. Lack of appreciation for the
specific challenges they will encounter in the Eastern European
marketplace is the single largest reason why some businesses
fail in their dealings there.
The profits are there in Eastern Europe. They want what you have
to sell them, and they will pay a fair price. But before you
venture into that market, make sure you know what you are
getting into and if you are unsure of the specifics, seek help
from a professional. Believe me, it's worth it. Author Bio:
Steve McLaughlin founded Global Market Insights, with offices in
Europe and the U.S., with his vision of giving clients two
synergistic competencies: knowledge of the global marketplace
and industry expertise in manufacturing, finance and information
technology. Steve has over twelve years of international
experience in three continents, having started in executive
search as a Beckett-Rogers Associate. Steve is a graduate of
Rice University where he was student body president, and
completed post-graduate studies in International Economics at
the Universidad Mayor, Santiago, Chile.
About the author:
None
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Negotiation - Wikipedia, the free encyclopedia |
The first step in negotiation is to determine whether the situation is in fact a negotiation ... The book's approach, referred to as Principled Negotiation, ... |
en.wikipedia.org |
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Negotiation Seminars Negotiation Training Negotiations Consultants ... |
Negotiation and alternative dispute resolution seminars, negotiation training and video presentations with available keynote speakers. |
www.negotiation.com |
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Program on Negotiation at Harvard Law School |
Negotiation training, research, and publications from the world's foremost authority on negotiation and dispute resolution. |
www.pon.harvard.edu |
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PON: Harvard Negotiations Project |
Please visit the Harvard Negotiation Project website for complete information and ... The Harvard Negotiation Project's mission is to improve the theory, ... |
www.pon.harvard.edu |
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The Negotiation Skills Company, Inc. |
www.negotiationskills.com/ - 3k - Cached - Similar pages |
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Global Trade Negotiations Home Page |
The Global Trade Negotiations Home Page at the Center for International Development at Harvard University - a centralized information resource on global ... |
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Principled Negotiation |
Principled negotiation is the name given to the interest-based approach to negotiation set out in the best-known conflict resolution book, Getting to Yes, ... |
www.colorado.edu |
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Salary Negotiation and Job Offer Tutorial |
Job-seekers: Learn the basics (and advanced techniques) of the art and strategy of salary negotiation (getting the salary you want) in this tutorial. |
www.quintcareers.com |
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Salary Negotiation and Job Offer Tutorial -- Map of the Tutorial |
Site map to an expert (and free) tutorial on the art and strategy of salary and job offer negotiation. A guide to assist every job-seeker with salaries. |
www.quintcareers.com |
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Win-Win Negotiation - How to reach a fair compromise - Negotiating ... |
This article and free worksheet help you negotiate fair compromises with people whose goodwill you need. It highlights the importance of good negotiation ... |
www.mindtools.com |
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negotiation journal |
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Apache Content Negotiation |
Apache's support for content negotiation has been updated to meet the ... Apache 1.2 supports 'server driven' content negotiation, as defined in the ... |
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JobStar--Salary Negotiation Strategies |
JobStar is a public library sponsored guide to information for the job search. Sections useful for California are: 1500 job hotlines, calendar of job and ... |
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Eric C. Gould's Negotiation Site |
Subscribe to newsletter with negotiating tips and techniques. |
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free negotiation training for sales, debt, contract, salary ... |
Free negotiation skills training for sales, contracts, debt, salary and contracts, negotiating with creditors, negotiation skills and techniques, ... |
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Monster.com: The Negotiation Coach |
Salary Negotiation Advice from HR Managers · Negotiating Your Future Salary Today · Overlooking Their Interests -- A Big Mistake in Salary Negotiations ... |
midcareer.monster.com |
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Negotiation Articles |
Negotiation articles for the busy entrepreneur written by a diverse group of experts, speakers, professionals, consultants, and marketing companies. |
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CareerJournal | Negotiating Tips - Salary Negotiation Tips ... |
Salary Negotiation Tips - When it's time to negotiate salary changes, trust Career Journal to give you the best and most current career salary information. |
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PON Clearinghouse |
Welcome to the Program on Negotiation Clearinghouse, a resource center for people interested in learning and teaching about negotiation and alternative ... |
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:: Negotiations Affairs Department :: |
Information on the issues, history, developments and positions regarding Palestinian-Israeli peace negotiations. |
www.nad-plo.org |
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