The good, the bad, and the ugly of doing business internationally

Taking your company international doesn’t always mean flying in fancy jets, staying in luxury hotels, and making business deals on the golf course.

Instead, it can involve traffic jams, language barriers, or even terrorist threats and health issues.

For the Donald L. Triggs Lecture in International Business on October 14, Ivey Assistant Professor Andreas Schotter and Con Steers, HBA ’76, Managing Director of Pedra da Gavea Co. Ltd., discussed why certain locations may be inconvenient for doing business, but you should go there nonetheless. The event was entitled The Hassle Factor: Don’t let location inconveniences curtail your company’s international success.

“Business travel and going to locations to do business is not as glamorous as some people think and it does affect business,” said Schotter. “What we have seen is some self-interest exists. Some managers like to go to some places better than others and this does affect the ways firms do business.”

Schotter outlined 11 hassles that can affect business. These include:

• Local transportation standards;
• Health risks and medical standards;
• Business facilitation;
• Food and water hygiene;
• Risk for female executives;
• Climate;
• Telecommunications standards;
• Hotel availability and standards;
• Visa and entry permits;
• Personal safety; and
• Language. 

Considering countries by the numbers

His research also measures 180 countries and ranks them from low to high hassle factor. The research was conducted with Professor Paul Beamish, who holds the Canada Research Chair in International Management and the Donald L. Triggs Chair in International Business at Ivey.

But Schotter warned companies shouldn’t overlook countries that have good economic potential just because they are high in hassles. Instead, knowing about the hassles in advance can help firms to know how much they need to pay their expatriates or when they will need to provide cross-cultural training or additional support.

Steers outlined why the hassles in Brazil, a country that placed 78 on the list, didn’t outweigh the benefits of doing business there with companies such as Weatherhaven Brasil, a firm that provides construction camps, military camps, and field hospitals.

“In time, I developed strong bonds with the people that I worked with and this factor made me forget the hassles,” he said. “Take the time to try and get to know the country before going down. Read recent political and business reports. Embrace the place. The more you know, the better you understand and the more fulfilling and likely successful business will be.”

For more on the hassle factor research, please visit www.hasslefactor.info

Con Steers, HBA ’76, Managing Director of Pedra da Gavea Co. Ltd.