Without a doubt, the Finnish know-how is most reliable in respect of the product itself. However, as soon as marketing and the establishment of a sales organisation are to be implemented, a lot of Finnish business practises cannot be transferred to the German market. Finns usually meet with a lack of know-how as soon as they have to deal with German customers. In a foreign market, you must be extremely careful with the sense for the right decisions and the correct way of leading negotiations, which are both essential elements of professional competence in the home market.

The need for advice in cases where German law has been agreed as applicable for the contract, is generally recognized. In these cases, the text of the contract alone does not reveal the contents of the agreements, so it is necessary to complete it taking into account the general provisions of German law. If the Finnish partner wishes to know what is being agreed on in these cases, he must to inform himself about the relevant provisions of the German law. Occasionally there is a false belief that by agreeing on Finnish law these problems can be avoided if only the opposite party is willing to accept Finnish law. In these cases it is often not appreciated that along with a large number of imperative substantial provisions the local practises and customs, the so-called "local data", must also be taken into account. Thus, agreeing on Finnish law is not a way to compensate for the lack of German know-how, but only to slightly moderate its consequences.

If business is concucted in Germany through an own subsidiary company, German law is imperatively applicable anyway, for the organisation of the German subsidiary as well as for questions regarding possible liability for the debts of the subsidiary. In addition, one must consider that for example claims can only be covered by means of security which are available in the country of the debtor. This also applies to the procedural means of enforcement. It is a frequently observed unpleasant surprise to discover that on the one hand, German law offers quite useful preventative means of security, e.g. as reservation of title, but on the other hand, when these options are missed, it will leave the creditor without any protection.

Other "local data" stem from the language of the contract. If contracts are made in the German language which is probably the rule in business with German buyers the applied terms are usually to be interpreted according to the connotations that they possess in the German language and in the German legal system. This may prove very expensive, if by reason of the terms applied outlining the contractual specification of services in accordance with the German concept, the framework transpires to be considerably narrower than the Finnish side has expected on the basis of the corresponding Finnish meaning of such terms.

Much has been written about cultural sensitivity when dealing with foreign business partners. Regrettably, though the known comments about this mostly deal with questions of politeness only. In this area, it is primarily the German transaction partners who have problems in respect of the German-Finnish relations. The typical Finnish rules of conduct are also widely considered as pleasant in Germany. The Finnish side primarily has problems in judging the meaning of the attitude of the German side in contract negotiations. Because of the higher preparedness for conflicts of all those involved in the German market there is an especially great need for securitites. For this reason, in most cases a simple price tender is unlikely to lead to an order for as long as the German contract partner is not convinced of the partner's sincerity. With this in mind, all oral agreements are usually confirmed in writing. Such confirmations may create obligations between businesspeople, even if the agreements are incorrectly recorded.

Further, in connection with the economically most important practices for the export of goods and services to Germany, as well as the conclusion and termination of long term agreements, the founding and management of subsidiaries, the enforcement of claims and, last but not least, the correct distribution of functions between export companies and counsellors, there are considerable differences between the German and the Finnish market.

If misunderstandings have to be resolved afterwards, it ususally causes further costs which could have easily been avoided by clarifying the matter in advance. With regard to larger export projects, a consultation is already advisable while discussing the aims and when preparing the budget. In this connection the widely spread misconception that lawyers can only check contracts in respect of their legal permissibility should be corrected.

Accordingly, I believe we can certainly be partners in the German-Finnish trade, who are able to contribute a great deal even to the framework of export business.