Key aspects of collaborating with local partners in a foreign market

  • It is important to know the local market and how to do business there.
  • There is great value in having local partners who are well-connected.
  • Never underestimate the difficulties of understanding another culture.
  • Cultural differences manifest themselves as difficulties in communication.

Key ingredients for success:

  • Understand what each partner wants to obtain from the collaboration, and ensure that objectives are aligned.
  • Getting a signed contract is key to doing a deal in an emerging market – don’t put too much emphasis on trust.
  • Don’t put too much credence in cultural differences, and don’t sacrifice good business practice because of them.
  • Strive for clarity in communication and negotiations.

(Source: The Open University, 2012).

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