May 17, 2021

Volume XI, Number 137

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May 14, 2021

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The Challenges Facing Manufacturers Wishing To Sell Products Globally

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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Copyright © 2021 Robinson & Cole LLP. All rights reserved.National Law Review, Volume XI, Number 123
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About this Author

Jeffrey White Corporate Law Attorney Robinson Cole Hartford
Partner

Jeff White provides counseling and dispute resolution advice for manufacturers and distributors. He is chair of the firm's Manufacturing Industry Team and regularly represents clients throughout the United States and globally. Jeff is significantly involved with industry issues through his participation with groups such as the National Association of Manufacturers (NAM) and the American Bar Association's International Expansion and Cross-Border Transactions Subcommittee. In 2013, he created and launched the widely read Manufacturing Law Blog, which was one of...

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