In the Uniied Slates, signing a contract
ensures ihat two parties know exaaly
whal ihey are getting for the tenure of
the contract. But in China, a contract is
more a symbol of a relationship, changing
as the benefits differ for each party.
This is jusl one of the many legal and
cultural difference.s that companies must
deal with when they wish to start marketing
or producing in foreign countries, said
Craig Meurlin, partner at Warner Norcross
and Judd and chair of its international
practice group.
"There are some cultural and legal
mountains out there." he said.
Meurlin said such cultural translations
are usually more ditficult in Asian countries
than in Kuropcan countries.
"It is, I think, a much more significant
cultural difference," he said. "Tliose
mountains are much higher."
Meurlin said it is highly important for
companies to understand the cultural
background of a country^ where they wish
to do business. Meurlin said in Japan, for
example, there are very strict observances
]X"rtaining to how people are introduced,
who asks and answers questions, and
how decisions are made, all of wliich can
lead to relationship problems ii" American
businessmen anti women are not aware
of cultural norms and etiquette.
Much of Meurlins experience in Asia
stems being general counsel for Alticor
Inc, lor seven years, during which time he
took both Amway Asia Pacific and
Aniway Japan private. Meurlin said he still
works with the company through his
position at Warner Norcross and Judd.
Witli his experience came the ability to
navigate the process, asking the right
questions and getting the right answers,
Meurlin said.
One of the things attorneys can help
busines.ses with is compliance, including
the current issues of the federal Anti-
Bril^ery Act.
"It has much broader applications than
people might have exf)ected," he said.
Donating to pet charities of business
partners in otlier countries was once seen
as a gesture of goodwill, but now can be
construed as brilx'r> Meurlin said, and
companies need to Ije aware of this.
It aiso is necessary to be aware of what
bLisiness partners are doing, especially
whether they may be engaged in illegal
l^ehavior.
"You have to restrict what your distributors
can and cannot do," he said,
llie challenge of dealing with corruption
is one that more companies may face
as they liecome involved with the Russian
market, ,said Richard Walawender. head of
the international business practice at
Miller Canfield Paddock and Stone. He
has worked with four companies in the
past year that do business in Russia.
"It's really challenging to do that
because of the higli governmental red
tape issues that you have there, and also
it is very corrupt," he said. "Finding a
Walawender
good partner — a trustworthy partner —
in a place like Moscow is very important,
and also difficult to do."
.Similar problems arise in Vietnam.
WaUiwender said, but with the implementation
of an anti-corRiplion compact with
the Organization for Economic Cooperation
and Development, signed by countries
such as France, Germany. Italy,
Canada and the U.S., it is liecoming easier
to do business through legal avenues.
"I think the playing field has |-)ecome a
lot more level these days," he said,
Meurlin said the international business
landscape has changed since he helped
Alticor make the transition to the Asian
market during the i990s and early 20(X)s.
"We all know alxiut the Alticors of the
world and the Wolverine World Wides of
the world," he s^iid, 'Now international
companies cover a much broader range of
size."
Walawender said it has taken American
companies — especially those in West
Michigan — some time to ,see the benefits
of joining the global marketplace.
With the rush to take their business
into countries such as China, Walawender
,said companies in the United States forget
that they are able to keep their business
here in America while doing business in
other counlrics.
"Us noi a zero-sum game." he said. "It
doesn t mean closing a plant in Michigan.
In order to grow the business witli a ctistomer
who is in China, you can t expect to
do that from Grand Rapids; you have to
l_X' there as well as in Grand Rapids.
"Historically, Michigan has Ix'en perceived
as looking at globalization as
something not necessarily to be
embraced, but to Ix' feared or bltKked,
That mentality. I think, has changed."
Companies should be in both the
domestic and foreign markets,
Walawender said.
"You can have Ixjth — and you should
have Ixjth." he said, 'Companies for the
most part have really turned the tide in
the last couple of years," LQ