UNIVERSIDAD ESAN

MAESTRA EN ADMINISTRACION
A TIEMPO PARCIAL 60
Grupo 2
Grupo de Trabajo 9

SUBJECT: INTERNATIONAL MARKETING: GOING ABROAD

PROFESOR: Waldemar Pfrtsch

TITLE: Doing Business with Canada

1000896 Manuel Escudero

1406199 Carlos Montoya

1311239 Julio Mori

Surco, January 23th, 2016

General information1
Canada is a country in the northern half of North America. It is extended from the
Atlantic to the Pacific Ocean and northward into the Arctic Ocean. Canada has 9.98 million
square kilometers (3.85 million square miles), being the second largest country in the
world. The majority of the country has a cold or severely cold winter climate, but southerly
areas are warm in summer. Its capital is Ottawa, but its largest metropolis is Toronto; other
major urban areas include Montreal, Vancouver, Calgary, Edmonton, Quebec City,
Winnipeg and Hamilton.
Canada has 2 officials languages, English and French, The country is officially bilingual at
the federal level. Canada is a federal parliamentary democracy and a constitutional
monarchy, with Queen Elizabeth II being the head of state

Government and politics

Their use of the executive powers is directed by the Cabinet, a committee of ministers of
the Crown responsible to the elected House of Commons and chosen and headed by the
Prime Minister of Canada. The governor general or monarch may, though, in certain crisis
situations exercise their power without ministerial advice.

Key facts about Canada (2015)2

Population: 35.9 million
GDP: $1.983 trillion
GDP: per capita $55,319
Exports of goods and services: $625.4 billion
Imports of goods and services: $671.2 billion
Consumer price inflation: 1.1%
Stock of foreign direct investment in Canada: $768.5 billion
Stock of Canadian direct investment abroad: $1,005.2 billion

Canada has the worlds 3rd largest per capita resource endowment, including significant
untapped resources in Canadas North. Canada is also3:

The 8th highest total primary energy supply in the world

The worlds 3rd largest forest area
The worlds top destination for nonferrous mining exploration in the top 5 of almost all
major minerals and metals
The global leader in public geoscience
1 Source: Wikipedia

2 Source: Government of Canada, 2017

3 Source: Government of Canada, 2016

 Amongst worlds cleanest and lowest cost electricity producers

Tourism Industry
Tourism is a dynamic and far-reaching sector whose economic impact helps to employ
Canadians across the country, in every region. Ours is an industry of collaboration
between businesses: The transportation services which deliver visitors to and through our
vast country; the hotels and other accommodations who provide them with comfort and
hospitality once they arrive; and the attractions, which create the experiences and
memories which compel visitors to come to Canada and return often.
In 2011, Canada welcomed some 15.6 million international overnight visitors that spent
$11.8 billion in Canada (Table 1.1). Overnight visitation, the source of more than 95% of
total tourism spending in Canada, has declined by almost four million a year or 20% over
the past decade.
Excluding the United States the greatest generators of visitors to Canada are the United
Kingdom, France, Germany, Australia and China (Table 1.2). On a percentage basis, the
most significant increases have been posted by visitors from China, India and Brazil. The
largest percentage decreases in absolute numbers are in visitors from Canadas traditional
source markets Japan, Germany and the United Kingdom.

Doing business with Canada

According to the Canadas Government official web site, The Government of Canada is
committed to creating the most favourable conditions for Canadian businesses to compete
internationally (www.canada.ca, no date). To make possible this goal, it is necessary to
comply with some permits, licences and regulations formally established by the country.
The most important rules are related to Agriculture; Firearms; Logs; Military and Strategic
Goods and Technology; Softwood Lumber; Steel; and Textiles and Clothing. There is also
another important rule: every business in Canada must have a Business Number, that is a
single account number for dealing with the federal government regarding GST/HST 4,
payroll, import/export and other activities.
Then, depending on the business that you are interested in Canada, there rules which are
necessary to be care about. For example, related to drugs and health product imports and
exports, the trade of those products is regulated under the Food and Drugs Act, and its
associated Regulations. These regulations includes Human Drugs; Natural Health
Products; Medical Devices; Veterinary Drugs; Blood and Blood Components for
Transfusion; Human Cells, Tissues and Organs for Transplantation; and Semen for
Assisted Conception (www.canada.ca, no date).
Another important example is the trade of goods and agricultural products. Canada is a
well-known provider of wheat and other cereals, but also Canada exports fish and
seafood, as well as fruits, vegetables and honey. However, Canada exports those goods

4 Goods and services tax/Harmonized sales tax (www.canada.ca, no date)

only in specific seasons, and in very small quantity. At the same time, Canada imports
exotic fruits, like papaya, pine-apples and passion fruit, being its main providers Chile,
Mxico, Costa Rica and Ecuador (http://revistaialimentos.com/, no date). To regulate this
business, Canada has specific rules that must be followed by every company interested in
do business with them.
Other Canadian industries are:

Aerospace
Automotive
Biopharmaceutical
Bioproducts
Business services
Chemicals and Plastics
Digital media
Financial services
Functional food
Machinery and equipment
Medical devices
Mining, oil and gas
Renewable energy
Science, technology and innovation
Software
Wireless communications

Hofstede analysis
Using the theory of the 6 cultural dimensions of Hoffstede5, we will explore Canadian
culture in order to get an overview of the drivers of its culture in relation to other cultures of
the world.
Canadian culture has a score of 39 in the dimension of Power Distance, where
egalitarianism is valued and is marked by the interdependence among its inhabitants and
egalitarianism is valued. It emphasizes a hierarchy for convenience where leaders are
always accessible and recognize the individual work and experience of teams. Canadians
value the direct and open exchange of information.
Individualism dimension in Canada has the highest scores. This turns into a loosely united
society which expectation is that people take care of themselves and their families. In
relation with the work environment, employees are expected to be self-sufficient and show
initiative. In addition, within companies, all growth has positive results with meritocracy
based on the evidence of what one has done or can do.

5 See Hoffstede Centre (URL): http://geert-hofstede.com/canada.html, view

on 23th January, 2017.
The masculinity dimension in Canada is characterized as a moderately "male" society.
Canadians make efforts to achieve high standards of performance in all their lifes by
looking for a moderate balance in work and personal life.
As for the Uncertainty Avoidance dimension, Canadian culture is more of "acceptance".
This means that Canadians accept new ideas, innovative products and are willing to try
something new or different. They are also tolerant of new opinions and allow freedom of
expression. On the other hand, Canadian culture is not rule-oriented and tends to be less
emotionally expressive.
If it is the dimension of long-term orientation, Canada is a normative society. Canadians
are very concerned about establishing absolute Truth. They show great respect for
traditions, a relatively small propensity to save for the future, and a focus on achieving
quick results.
Finally, in the last dimension, we can indicate that Canadian culture is classified as
indulgent. They are people who generally show a willingness to realize their impulses and
desires if it is about enjoying life and having fun. They have a positive attitude and are
optimistic. In addition, they place "leisure time" in a greater degree of importance, act as
they please and spend the money they want.

Behavior in Canada6
To start a good meeting or business appointment, it must be very timely as the promptness
is highly valued by the Canadians. Always keep a reserved behavior and follow good rules
of etiquette.
Giving gifts is not usual. If you give a gift when you arrive or when you finish a business
treat, makes you a modest person, it could be a good bottle of wine or liquor. But a
sumptuous gift, though accepted, would be frowned upon. on the other hand its well seen
to take your business partner to a nice meal , a sport event or a concert.
Always use a firm handshake and good eye contact when meeting business partner.
During the business meeting, be open and friendly in your conversation. Maintain a natural
and reserved behavior, it will create a trusty and credibility picture of you self. Do not
boast, and do not overdo the capabilities of your product or service.

6 Canada Business Etiquette & Culture (URL) http://www.international-

businessetiquette.com/besite/canada.htm , view on 23th January,
2017.
Reference List
Government of Canada (2016) Long-Term Investment Summit, Government of
Canada
Government of Canada (2017) Invest in Canada, Government of Canada
www.canada.ca/ (no date) Government of Canada, Government of Canada,
https://www.canada.ca/en.html viewed January 22th, 2017
www.revistaialimentos.com/ (no date) Es hora de exportarle a Canada, Revista
Alimentos on-line, http://revistaialimentos.com/ediciones/edicion-8/mercado-objetivo-
7/es-hora-de-exportarle-a-canada.htm, viewed January 22th, 2017
Hoffstede Centre (URL): http://geert-hofstede.com/canada.html, viewed on 23th
January, 2017.
Canada Business Etiquette & Culture (URL) http://www.international-business-
etiquette.com/besite/canada.htm, viewed on 23th January, 2017.
The Canadian Tourism Industry
http://tiac.travel/_Library/documents/The_Canadian_Tourism_Industry_-
_A_Special_Report_Web_Optimized_.pdf
About Canada's Tourism Industry http://tiac.travel/advocacy_overview.htm
Appendix N 1
Canadas Business Environment

Appendix N 2
Municipal Investment Promotion Services
Canadas large cities are working together to welcome you. The Consider
Canada City Alliance represents Canadas largest cities, and provides investors
with the expertise and knowledge needed for success in Canada.
TORONTO torontoglobal.ca
GREATER MONTRAL montrealinternational.com
VANCOUVER vancouvereconomic.com
OTTAWA investottawa.ca
CALGARY calgaryeconomicdevelopment.com
EDMONTON edmonton.ca
WATERLOO REGION wredc.ca
QUEBEC CITY quebecinternational.ca
WINNIPEG economicdevelopmentwinnipeg.com
LONDON ledc.com
HALIFAX halifaxpartnership.com
SASKATOON sreda.com

Appendix N 3

Appendix N 4
Appendix N 5
Hofstede Analysis Canada

See Hoffstede Centre (URL): http://geert-hofstede.com/canada.html, viewed on 23th

January, 2017.