The Challenges Facing Manufacturers Wishing To Sell Products Globally

Robinson+Cole Manufacturing Law Blog

One of the IndustryWeek articles that always grabs my attention is “Top 10 Most Corrupt Countries of 2021.” Obviously, there is an immediate incentive to check the list and see if you do business (or even can do business) in any of the countries listed.

Leaving the list aside, one trend for manufacturers that operate globally that always seems to be an issue is deciding how to sell products in other countries. Some manufacturers open sales offices; others pursue joint ventures. Some manufacturers have distributors, while others have authorized sales representatives.

There are key differences among all of these options, but many of our clients continue to express frustration with the “results” they are getting. Some manufacturers enter into financial agreements that never seem to work out. Or, alternatively, they negotiate “exclusivity” that isn’t very exclusive.

The bottom line is that as the agreements renew, it is important to assess whether changing to a different model makes sense, particularly in countries where there can be compliance challenges (such as bribery) that can impact a business in a significant way.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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