Originally from:
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
Preview Page
CHAPTER 17
THE MINNESOTA BUSINESS OPERATING
IN FOREIGN COUNTRIES
Section
§ 17.01 Doing Business Abroad: An Overview
§ 17.02 Cultural Differences
§ 17.03 Currency
§ 17.04 Infrastructure
§ 17.05 Employees
§ 17.06 Foreign Governments
§ 17.07 Common Forms of Doing Business Abroad
§ 17.08 Foreign Venture Schemes Available to Corporations
§ 17.09 --Subsidiaries
§ 17.10 --The Joint Venture
§ 17.11 --Minority Interest in Foreign Corporation
§ 17.12 Tax Considerations of Doing Business Abroad
§ 17.13 Taxation of Specific Business Forms--Corporations
§ 17.14 --Foreign Personal Holding Companies
§ 17.15 --Foreign Sales Corporations
§ 17.16 Nontax Considerations
§ 17.17 Summary
§ 17.01 Doing Business Abroad: An Overview
As the world "shrinks," it is becoming increasingly necessary, in the
face of strong domestic competition, for domestic businesses that have
previously restricted their operations to within the United States to
actively seek out international market opportunities.1 Also, as the cost of
domestic production rises, the low wages and/or educated workers
offered in some international environments become more attractive to
manufacturers. It is critical to the success of any venture involving foreign
parties to make a thorough analysis of the potential costs involved and the
potential legal issues raised before embarking on a course of action.2 The
goal of the advisor to an individual or organization intending to do
business overseas must be to avoid problems from the outset.
However, before attempting to operate in a foreign market, it is vital
that a realistic assessment of the legal risks and potential costs involved
be undertaken. This process is described more fully in Part III.
Many corporations with headquarters in Minnesota have substantial
operations in foreign countries, some of which were established to meet
an existing demand for a service or product, and some of which were
established to create such a demand. This Section and those that follow it
are directed to the topic of the Minnesota corporation doing business
abroad.
One Minnesota corporation, Minnesota Mining and Manufacturing
Company (3M) of St. Paul, is representative of a growing corporate trend
in Minnesota. 3M has formed and nurtured business presences in
numerous foreign countries that have become a profitable and sizable
portion of its corporate empire.3 However, Minnesota corporations that
are considering establishing businesses in foreign countries must be wary
of many potential pitfalls, among which are the following.4
Roger J. Magnuson is a Partner at Dorsey and Whitney, LLP, where he serves as Head of the National Strategic Litigation Group and has practiced since 1973. He has been recognized as one of the top trial lawyers in the United States by major national and international publications, including Chambers International Guide to American Lawyers, which profiles the top 500 trial lawyers in the United States, Best Lawyers in America, Who's Who in American Law, and Who's Who in America. Mr. Magnuson was also recognized by a Journal of Law and Politics' survey for Judge's Choice "Wins Most Cases."
Some high profile cases that he has litigated include representation of the Florida Senate in the Bush v. Gore election controversy in 2000; and representation of the Plaintiffs in the widely publicized and studied Mall of America case. For several years he has represented, among other persons and entities, the Minnesota Twins and Major League Baseball principals and players in litigation; and has litigated national and local cases in federal and state court venues. He has appealed before the Supreme Court in a number of cases; as well as the Minnesota Supreme Court. He has authored several articles and 7 books.
Richard A. Saliterman is a Principal in Saliternan & Siefferman P.C., a full-service firm in Minneapolis established in 1976. Mr. Saliterman is a leading expert on corporate business matters, and is the author of several publications on business start-ups, franchises, and trademarks. Mr. Saliterman is the former National Judge Advocate for the U.S. Navy League, based in Washington D.C.
Contributing Editor:
Amanda Chang
Contributing Authors:
Alecia Anderson
Seth Back
John Baker
Shannon Berg
Constatin Burachek
Benjamin Carpenter
Ryan Check
Carl Christensen
Peter Fear
Michael Frasier
Aaron Hall
Catherine Hanson
Paul Harman
Amy Ithlan
Michael Kern
Chris Kuhlman
Brett Larson
Joshua Lederman
Karen Lundquist
James Magnuson
Jennifer Mead
Rao Menier
Heidi Miller
Rachael Moxon
Oliver Nelson
Scott Peitzer
Mitchell Skinner
Jonathan Stechmann
Lael Weinberger
Jonathan Wilson
Alex Zumbulyadis
