SUBTEXTthe Japanese have established the Trading Company concept. The
Trading Company is essentially an administrative group of people
with some technical background in the industry they represent
A Trading Company will represent some ten to twelve factories
It handles the administration work and the invoicing. When you
finish playing games at the factory level (a necessary step) you
go to the Trading Company for realistic information on prices
and delivery. The Trading Company will only do business on an
open account. They deal with letters of credit to ensure that they
get paid if they live up to their contract.
In a Trading Company, the mask of politeness is partially
dropped. They aren't too concerned about hurting your feelings,
but to make up for harsh reality, they entertain lavishly. They would
think nothing of spending a thousand dollars for a dinner—of
course, the factory pays!
KOREA AND TAIWAN
Another businessman, who dealt with Korea, said that negotiating
with Koreans was very difficult because they are constantly trying
to second-guess you. "For some reason, they feel inferior in negotia-
tions compared to people from the United States. They consider
an American an ace negotiator because of his or her education,
background and wealth. They are slow to take your word, and
they spend a great deal of time boxing with you until they feel
they can understand your motives and whether you're sincere."
In Korea this businessman visited a foundry where he wanted
to get some decorative brass wall hooks made. The foundry was
very archaic, like foundries in the United States 150 years ago,
but it turned out beautiful products. Labor, of course, was very
cheap.