Country Profile of Canada: International Business Management
Country Profile of Canada: International Business Management
Country Profile of Canada: International Business Management
ASSIGNMENT 1
SUBMITTED BY
BARATHAN.S
31509631011
II year MBA
QUICK FACTS:
FULL NAME: Canada
CAPITAL: Ottawa
LARGEST CITY: Toronto
AREA
TOTAL: 9,984,670 sq km
LAND: 9,093,507 sq km
WATER: 891,163 sq km
MONETARY UNIT: 1 Canadian dollar = 100 cents
EXCHANGE RATE:
American Dollar = 0.963948 Canadian dollar
Euro= 0.749571 Canadian dollar
Indian Rupee = 44.9368 Canadian dollar
Chinese Yuan = 6.5472 Canadian dollar
Japanese Yen = 82.198 Canadian dollar
INTERNET DOMAIN: .ca
INTERNATIONAL DIALING CODE: +1
EMBASSY OF INDIA:
Address:
High Commission of India
10, Springfield Road
Ottawa, Ontario, Canada
K1M 1C9
Telephone No. 613 744 3751
613 744 3752
613 744 3753
Fax No. 613 744 0913
E-Mail [email protected]
Website http://www.dfait-maeci.gc.ca/new-delhi/
CANADA EMBASSY IN INDIA:
Address: Canadian High Commission
7/8 Shantipath, Chanakyapuri
New Delhi 110 021, India
Telephone: (91-11) 2687-6500
Fax: (91-11) 2688-6736
E-Mail: [email protected]
TRADE ASSOCIATIONS:
NAFTA Secretariat, Canadian Section
International Trade Canada
Department of Foreign Affairs and International Trade
Canadian Association of Mining Equipment and Services for Export
Bicycle Trade Association of Canada
Automotive Industries Association of Canada
Canadian Healthcare Information Technology Trade Association (CHITTA)
Organic Trade Association
Association of Importers and Exporters Inc.
GENERAL INFORMATION:
LOCATION
Northern North America, bordering the North Atlantic Ocean on the east, North
Pacific Ocean on the west, and the Arctic Ocean on the north, north of the
conterminous US.
NATURAL RESOURCES:
Iron ore, nickel, zinc, copper, gold, lead, molybdenum, potash, diamonds, silver,
fish, timber, wildlife, coal, petroleum, natural gas, and hydropower
NATURAL HAZARDS:
Continuous permafrost in north is a serious obstacle to development; cyclonic
storms form east of the Rocky Mountains, a result of the mixing of air masses from
the Arctic, Pacific, and North American interior, and produce most of the country's
rain and snow east of the mountains
CLIMATE:
Varies from temperate in south to subarctic and arctic in north
ENVIRONMENT:
Air pollution and resulting acid rain severely affecting lakes and damaging forests;
metal smelting, coal-burning utilities, and vehicle emissions impacting on
agricultural and forest productivity; ocean waters becoming contaminated due to
agricultural, industrial, mining, and forestry activities
ENVIRONMENT - INTERNATIONAL AGREEMENTS :
Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic
Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto
Protocol, Desertification, Endangered Species, Environmental Modification,
Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship
Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands Air Pollution-
Volatile Organic Compounds, Marine Life Conservation.
DEMOGRAPHICS:
POPULATION:
33,759,742
RELIGION:
Major religion: Christianity
Roman Catholic 42.6%, Protestant 23.3% (including United Church 9.5%, Anglican
6.8%, Baptist 2.4%, Lutheran 2%), other Christian 4.4%, Muslim 1.9%, other and
unspecified 11.8%, none 16% .
MAJOR LANGUAGES: English, French (both official)
GOVERNMENT TYPE:
A parliamentary democracy, a federation, and a constitutional monarchy
POLITICAL PARTIES:
The Conservative Party of Canada (governing party), the Liberal Party of Canada (the Official
Opposition), the New Democratic Party (NDP), and the Bloc Québécois.
ECONOMIC OVERVIEW
ECONOMY
OVERVIEW
As an affluent, high-tech industrial society in the trillion-dollar class, Canada
resembles the US in its market-oriented economic system, pattern of production,
and affluent living standards. Since World War II, the impressive growth of the
manufacturing, mining, and service sectors has transformed the nation from a
largely rural economy into one primarily industrial and urban. The 1989 US-Canada
Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement
(NAFTA) (which includes Mexico) touched off a dramatic increase in trade and
economic integration with the US, its principal trading partner. Canada enjoys a
substantial trade surplus with the US, which absorbs nearly 80% of Canadian
exports each year. Canada is the US's largest foreign supplier of energy, including
oil, gas, uranium, and electric power. Given its great natural resources, skilled labor
force, and modern capital plant, Canada enjoyed solid economic growth from 1993
through 2007. Buffeted by the global economic crisis, the economy dropped into a
sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit
in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the
financial crisis of 2008-09 among the strongest in the world, owing to the country's
tradition of conservative lending practices and strong capitalization.
GDP:
$1.285 trillion
GDP - per capita:
$38,400
GDP (REAL GROWTH RATE):
-2.5%
GDP (COMPOSITION BY SECTOR):
Agriculture: 2.3%
Industry: 26.4%
Services: 71.3%
INDUSTRIES:
Transportation equipment, chemicals, processed and unprocessed minerals, food
products, wood and paper products, fish products, petroleum and natural gas
EXPORTS:
$323.4 billion
EXPORTABLE ITEMS:
motor vehicles and parts, industrial machinery, aircraft, telecommunications
equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum,
natural gas, electricity, aluminum
EXPORT PARTNERS:
US 75.02%, UK 3.37%, China 3.09%
IMPORTS:
$327.2 billion
IMPORTABLE ITEMS:
Machinery and equipment, motor vehicles and parts, crude oil, chemicals,
electricity, durable consumer goods
IMPORT PARTNERS:
US 51.1%, China 10.88%, Mexico 4.56%
EXTERNAL DEBT:
$833.8 billion (30 June 2009)
TRADE REGULATIONS
TRADE BARRIERS:
Non-tariff measures (NTMs), also known as non-tariff barriers, are government measures or
policies other than tariffs that unduly restrict or distort international trade. Technical barriers or
non-tariff barriers to trade as they are sometimes known as can cause many problems for
exporters looking for new markets for their products. These barriers can be in the form of
regulations, standards, testing and certification procedures. The World Trade Organization
(WTO) Agreement on Technical Barriers to Trade tries to ensure that these barriers do not create
unnecessary obstacles
Non-Tariff Measures in Various Agreements
World Trade Organisation (WTO) - GATT
North American Free Trade Agreement (NAFTA)
Canada-Costa Rica Free Trade Agreement (CCRFTA)
Canada-Chile Free Trade Agreement (CCFTA)
Canadian Taxes
Just about everything individuals import into Canada is subject to the Goods and Services Tax
(GST) of five percent. The GST is calculated after customs duties have been applied.
You will also have to pay the applicable Canadian Provincial Sales Tax (PST) or Quebec Sales
Tax (QST). The provincial retail sales tax rates vary from province to province, as do the goods
and services to which the tax is applied and the way the tax is applied.
In Canadian provinces with a Harmonized Sales Tax you'll be charged a flat 13 percent, rather
than separate GST and PST.
CUSTOMS TARIFF
CANADA
· Duties
0-25%
· GST 5%
· QST 7.5% (Quebec)
The Customs Tariff is based on the World Customs Organization's (WCO) Harmonized
Commodity Description and Coding System (HS).
The Harmonized Commodity Description and Coding System (HS) forms the basis of
the Customs Tariff . The HS was developed and is maintained by the World Customs
Organization (WCO), an independent intergovernmental organization with over 160 member
countries, based in Brussels, Belgium.
The HS is structured upon a six-digit nomenclature. Almost 200 countries, representing about 98
percent of world trade use the HS as a basis for trade negotiations collecting international trade
statistics, quota controls, rules of origin and for statistical and economic research and analysis.
Customs Valuation
all goods shipped to Canada must have a value and description for the goods shipped. The value
is usually based on the transaction value between the shipper and the importer, in other-
words the sale value of the goods. However, if no actual transaction has taken place, for
example, a sample or a no charge shipment, there still must be a value assessed; this basically
would be the fair market value, or replacement value. Non-tangible items such as a cheque,
business documents, accounting documents, plane tickets, etc. must also be assessed a value, but
this should be based on the value of the paper rather than the actual value plane ticket or cheque.
While duties and taxes would not be assessed on these non-tangible items they still must be
reported to Canada Customs.
DOCUMENT REQUIREMENTS FOR IMPORTS:
Air Waybill – An air waybill or carriers certificate (naming the consignee for customs purposes)
as evidence of the consignee's right to make entry.
Commercial Invoice – Required for non-document shipments and to help prevent clearance
delays. It should be completed in English or French. If the CI is not completed in one of the legal
languages of Canada, the Canada Customs Revenue Agency (CCRA) may request a translation
from a party who is knowledgeable of the transaction, which will cause a clearance delay.
Specific invoice details are required for a number of commodities including the following:
Canada Customs Invoice Form CI1 (CCI) – Invoice developed by the Canadian government
for commercial shipments to Canada. This invoice holds all relevant information required by
Canada Border Services Agency. It is not the document that must be used, but does provide a
good guide for information that is required if you are to use your own commercial invoice.
Certificate of Origin - A Certificate of Origin Form A may be required for goods under entry
claiming preferential duty or exemption under the various agreements, General Preferential
Tariff (GPT). It should be produced at the time of entry and must be in the possession of the
importer at the time of entry. Origin of the goods must be detailed on the commercial invoice.
Artwork Statement - The artwork statement is required for duty-free entry of original works of
art such as sculptures, etchings, engravings, and lithographs.
Declaration of Antiquity - A declaration of antiquity (over 100 years old) must be shown on the
invoice to claim duty-free entry of goods over 100 years old. The statement must include the
words circa date followed by the year of manufacture whether known or estimated.
Alcohol shipments are only accepted if the shipper is a licensed distributor and is shipping to a
licensed distributor. All beer, wine and alcohol shipments require clearance by the respective
provincial liquor boards; the shipper must contact the consignee for a special province procedure.
Shipments of beer, wine and other alcohol for personal use is prohibited at all times, including as
gifts.
Warranty replacement goods can be imported exempt from Goods and Service Tax (GST) or
Provincial Sales Tax (PST) in the place of goods previously imported, which have been exported
for repair or have proven deficient. Replacement goods dependent on the classification of the
goods may be subject to a rate of customs duty.
IMPORT REGULATIONS BY CANADA CUSTOMS
Free to Import:
You can bring in more than the free allowance of alcohol except in Nunavut and the Northwest
Territories. However, the quantities must be within the limit set by the province or territory
where you will enter Canada. If the value of the goods is more than the free allowance, you will
have to pay both customs and provincial or territorial assessments.
You may bring in additional quantities but you will have to pay full duty and taxes on the excess
amount. If you plan a side trip abroad during your visit, you must be out of Canada for at least 48
hours to be eligible to claim these entitlements again.
Importing Currency:
If you are importing monetary instruments equal to or greater than CAN$10,000 (or its
equivalent in a foreign currency), whether in cash or other monetary instruments, you must
report it to the CBSA before you enter Canada.
Restricted Imports:
Endangered Species
If you are not a United States resident, you will need permission from Industry Canada to use
this equipment. For more information, contact Industry Canada by e-mail at
[email protected]
Food Products:
For information on CFIA import requirements, refer to the Automated Import Reference System
(AIRS) on the CFIA Web site at www.inspection.gc.ca or call a CFIA Import Service Centre
toll-free at the following numbers:
Animals:
You may import pet dogs and cats younger than three months old from the United States without
submitting any documentation. However, a CFIA veterinarian must examine them if they appear
unhealthy. If you own an assistance dog that is certified as a guide, hearing or other service dog,
the animal is not subject to any restrictions as long as it accompanies you to Canada.
If you own cats older than three months, dogs older than eight months and pet dogs between
three and eight months, you may import them from the United States as long as they accompany
you when you enter Canada. You will also have to submit a certificate signed and dated by a
veterinarian for each pet. The certificate must show that the animal is currently vaccinated
against rabies and include the name of the vaccine used and its expiry date. In addition, it has to
identify the animal by breed, age, sex, coloring and any distinguishing marks.
EXPORTS:
In accordance the Export and Import Permits Act, the Export and Import Controls Bureau is
responsible for issuing permits and certificates for various products included on the
Export (ECL).
Products subject to export controls include Military and Strategic Goods and
Technology, Softwood Lumber, Firearms, Textiles and Clothing, Sugar and Sugar Containing
Products, Peanut Butter, Logs and U.S.-Origin Goods and Technology.
Air Waybill – An air waybill or carriers certificate (naming the consignee for customs purposes)
as evidence of the consignee's right to make entry.
Commercial Invoice – Required for non-document shipments and to help prevent clearance
delays. It should be completed in English or French. If the CI is not completed in one of the legal
languages of Canada, the Canada Customs Revenue Agency (CCRA) may request a translation
from a party who is knowledgeable of the transaction, which will cause a clearance delay.
Certificate of Origin - A Certificate of Origin Form A may be required for goods under entry
claiming preferential duty or exemption under the various agreements, General Preferential
Tariff (GPT). It should be produced at the time of entry and must be in the possession of the
importer at the time of entry. Origin of the goods must be detailed on the commercial invoice.
Export Permits – Specific export permits are required for commodities subject to export
controls. The EPD is the agency for dual use exports (commercial items that may have military
applications). Other departments and agencies have regulatory jurisdiction and issue licenses for
controlled substances and precursor chemicals, endangered fish and wildlife species, defense
services and articles, arms and munitions, nuclear material, equipment and technology, fuels,
drugs and medical devices. License requirements are dependent upon an item's technical
characteristics, destination, end-use, end-user and other activities of the end-user.
Shipper’s Export Declaration form B13-A – Used for Canadian exports of $2,000 (CAD) or
more destined to non-US destinations.
EXPORT REGULATIONS BY CANADA CUSTOMS:
Exporting Currency:
If you are exporting monetary instruments equal to or greater than CAN$10,000 (or its
equivalent in a foreign currency), whether in cash or other monetary instruments, you must
report it to the CBSA before you leave Canada.
Tax Refunds upon Export:
When you leave, you may be eligible for a tax refund on the goods you bought in Canada if you
export them within 60 days.
TEMPORARY IMPORT
Importer or customs broker may consider classifying goods that will be imported temporarily
under tariff item No. 9993.00.00. Generally, all goods being imported temporarily, so long as
they are not being imported for sale, lease, further manufacturing, or processing, will qualify for
duty-free entry under tariff item No. 9993.00.00.
As of 11/30/00, Canada lists 57 classes of goods, which qualify for temporary import.
Some of those classes include:
Trade show booths and supplies;
Items coming back to Canada for repairs;
New products being evaluated or tested;
Samples for use in soliciting sales;
Goods entering on short notice for some type of emergency
CUSTOMS AND ETIQUETTE IN CANADA
» Meeting and Greeting
The most common greeting is the handshake.
It should be firm and accompanied by direct eye contact and a sincere smile.
Wait until invited before using someone's first name although Canadians tend to move to a first-
name basis rapidly.
French Canadian friends may greet each other by lightly kissing on the cheeks (once on the left
cheek and once on the right).
» Gift Giving
In general, Canadians give gifts for birthdays and Christmas.
If invited to someone's home for dinner, take a box of good chocolates, flowers or a bottle of
wine.
In Quebec, sending flowers in advance of the dinner party is proper protocol.
In Quebec, if you give wine, make sure it is of the highest quality you can afford.
Do not give white lilies as they are used at funerals.
Do not give cash or money as a present.
Gifts are usually opened when received.
» Dining Etiquette
Table manners are relatively relaxed and informal in Canada.
Quebec does see a little more formality.
Table manners are generally Continental, i.e. the fork is held in the left hand and the knife in the
right while eating.
Wait to be shown to your seat.
Do not begin eating until the hostess starts.
Do not rest your elbows on the table.
Feel free to refuse individual foods or drink without offering an explanation.
Leaving a small amount at the end of the meal is generally acceptable.
In formal situations, the host gives the first toast. An honoured guest should return the toast later
in the meal. Women may give toasts.
Business Etiquette and Protocol
» Meeting and Greeting
Canadian business people often begin relationships in a reserved manner; once people get to
know one another is becomes friendly and informal.
Canadians appreciate politeness and expect others to adhere to the proper protocol for any given
situation.
Shake hands with everyone at the meeting upon arrival and departure.
Maintain eye contact while shaking hands.
Men may offer their hand to a woman without waiting for her to extend hers first.
Honorific titles and surnames are usually not used.
However, academic titles are important in Quebec and are used with the honorific Monsieur or
Madame.
Business cards are exchanged after the initial introduction.
In Quebec, have one side of your business card translated into French. Hand the card so the
French side faces the recipient.
Examine any card you receive before putting it in your card case.
» Canadian Communication Styles
It is difficult to specify any national trait in terms of communication in Canada due to its
regionalism and cultural diversity. However, there are some basic communication styles that are
fairly standard across the country. For example, businesspeople are generally polite, easy-going
and somewhat informal.
Canadians communicate more by the spoken word rather than non-verbal expressions. Non-
verbal expressions are only really used to add emphasis to a message or are part of an
individual’s personal communication style.
Canadians like their space and prefer to be at an arm’s length when speaking to someone.
Canadians are reticent to discuss their personal lives with business associates. They expect
people to speak in a straightforward manner and to be able to back up their claims with
examples. They do not make exaggerated claims and are suspicious of something that sounds too
good to be true.
» Business Meetings
Canadians begin meetings with a minimal amount of small talk although one should expect to
spend a few minutes exchanging pleasantries and the like. In Quebec there may be more time
spent on relationship-building.
Meetings are generally well-organized and adhere to time schedules. They tend to be informal
and relaxed in manner even if the subjects being discussed are serious. When meeting with
Anglophones, meetings may seem more democratic as all participants will engage and
contribute.
Meetings in Canadian companies are used to review proposals, make plans, brain-storm and
communicate decisions. Attendees will generally represent a variety of levels and experiences;
all are expected to express opinions.
When presenting information, it is important to have facts and figures to substantiate claims and
promises. Canadians are essentially rational and logical and thus they will not be convinced by
emotions, passion or feelings
Traded items
WEBSITE:
http://canada.gc.ca/
https://www.cia.gov/library/publications/the-world.../ca.html
www.dhl.co.in/en/country_profile.html
http://www.visahq.ca/
http://www.imex.com/imex/assoc/tradealpha.html
http://www.countryreports.org/country.aspx?countryid=45&countryName=Canada
fedex.com/us/international/irc/profiles/irc_ca_profile.html