Book Review: Book delves into international business dealings

The book is built on principles Travis calls the Tenets of Global Trade:

1. Take advantage of trade agreements: Think outside the border.

2. Protect your brand at all costs.

3. Maintain high ethical standards.

4. Stay secure in an insecure world.

5. Expect the unexpected.

6. All global business is personal.

Each tenet has a chapter of the book, and Travis also shares with readers how he came up with these principles as necessities for doing business abroad.

Trade agreements

Travis notes that as international competition increases, many governments put in place special agreements to attract businesses from specific sectors and countries. His premise is that companies who don’t stay on top of what countries are offering will face significant hurdles compared to the competition – particularly if they wait too long to enter the global race for business opportunities.

Using the example of Fruit of the Loom, which waited too long to think globally, and its competitor, Sara Lee Knit Products Inc., now known as Hanesbrands Inc., he provides a real-life example of the importance of trade preference programs.

Brand protection

Protecting a brand – and a company’s reputation in the court of world opinion – is essential, Travis says, noting that it’s important to think beyond patents, copyrights and trademarks to consider labor and environmental practices of affiliated offshore facilities. Other pertinent issues addressed include taking responsibility when abuses occur, fair trade and dealing with counterfeit goods. Examples include clothing manufacturers such as Tommy Hilfiger and Nike.

Ethics abroad

The line between legal and illegal practices can be blurred by borders, Travis warns, noting that what might be a common gratuity in one country could be an illegal bribe in another. Also, it can be difficult to remedy missteps on a global scale, but the book shows that companies can protect themselves somewhat by establishing core values that not only define the corporation but also influence global business partners and their home countries.

Travis compares the global marketplace to the Wild West, though he notes that federal agencies from the Securities Exchange Commission to the FBI have ramped up enforcement efforts, which has pushed the global trade community toward self-regulation.

Security and expectations

Beyond the basics of safeguarding cargo from damage or theft, Travis delves into what it means to conduct international business in a post-9/11 world in terms of security. Cargo theft, customs trends and personal security during travels are addressed here, as well.

Expecting the unexpected, according to Travis, means going into the global market knowing that events will happen to disrupt a company’s plans.

What’s important, he notes, is being prepared to handle those.

Personal relationships

While global business can mean plenty of e-mails and teleconferences, Travis makes it clear that to succeed, businesspeople should be prepared to travel – a lot. “A firm and friendly handshake, a welcoming smile and a few hours of good old-fashioned ‘face time’ is worth a thousand e-mails and videoconferences,” he writes.

Also key to personal relationships is trust and mutual reliance. An unexpected topic in this chapter is the importance of keeping close watch on operations at home while you’re on the road.

The glue

Beyond the Tenets of Global Trade, the author maintains that transparency binds all the lessons into “a cohesive protocol for international business.” Travis says all companies involved in international trade must be sure that their operations can withstand scrutiny from investors and regulators – and they also need to push that openness all the way through their supply chains.

He writes: “If you allow the various pieces of the global trade puzzle to spin out of your orbit, it can be extremely difficult to regain the level of alignment that is so important to the oversight of complex multicountry transactions. If you can’t see a problem, you can’t fix it.”

Travis’ findings are applicable not only in international business, but also to operating anywhere – at home or abroad.[[In-content Ad]]