5-2 Milestone Two- NEED ERRORS CORRECTED
Classof2021
GlobalDimensioninBusinessUPLOAD.docxRunning head: GLOBAL DIMENSION IN BUSINESS 1
GLOBAL DIMENSION IN BUSINESS 5
Global Dimension in Business
Drivers for Global Entry
Overview
The company has been facing flattened sales in the domestic market and though there are no losses reported, the company desires to learn other available options in the international market to venture into. One of the preferred country is Canada and the overall intention of this business brief is to inform the business leaders of the current state of Canadian market for the purpose of determining whether it is a wise move to venture into it or not.
Section One: Drivers for Global Entry
Expanding in the global market is important for the business as this is the only way the business can target a wider range of clients a move that is likely to boost company sales. It is also an effective way of dealing with competition which also has plans of going global. Nevertheless, it is important to note that there a number of drivers for global entry and they include; business demands and needs; the societal needs, and cultural practices of the people. For instance, for a business to venture and establish in the global market with this case being the Canadian market, the business needs to understand the laws and regulations set by the Canadian government which must be complied for the business to be considered legal. Secondly, the business must ensure that the products aligns with people’s believes and cultural practices and also ensure that the societal demands are met.
Section Two: Market Profile
Cultural Profile
|
Category |
United States |
Canada |
|
Commonly Spoken Languages |
English, Spanish, Chinese, French, and Tagalog |
English and French |
|
Commonly Practiced Religions |
Christianity, Judaism, Islam, Buddhism, Hinduism, and unaffiliated religions like atheists and agnostics.
|
Christianity for instance Catholicism, Anglican, and Protestantism. Others include; Islamic, Hinduism, and Sikhism. |
|
Power Distance Index (PDI) |
40 |
39 |
|
Individualism Versus Collectivism (IDV) |
91 |
80 |
|
Masculinity Versus Femininity (MAS) |
62 |
52 |
|
Uncertainty Avoidance Index (UAI) |
46 |
48
|
|
Long-Term Orientation Versus Short-Term Normative Orientation (LTO) |
29 |
36 |
|
Indulgence Versus Restraint (IVR) |
68 |
68 |
Political and Economic Profile
|
Category |
United States |
Canada |
|
|
Political System |
Has a federal constitutional democratic system head by the president in the executive branch, legislature, and the judiciary. |
There is a parliamentary democracy and a federal system of parliamentary government. The monarch heads the state and the cabinet is in charge of the executive powers. An elected committee of ministers of the crown reports to the Canada House of Commons and they are selected and headed by the Prime Minister.
|
|
|
Current Leaders |
Elected and nominated |
Elected and selected |
|
|
Economic Classification |
Good |
Good |
|
|
Economic Blocs Impacting Trade |
Covid-19 regulations, high exchange rate, and relations with some countries. 21.43 trillion USD (2019)
|
Covid-19 regulations, strict international and trade policies, high currency exchange rate, high import and export rates. |
|
|
Gross Domestic Product |
21.43 trillion USD (2019) |
1.736 trillion USD (2019) |
|
|
Purchasing Power Parity |
US$0.84 (2019) |
US$0.83 (2019) |
|
|
Gross Domestic Product Per Capita |
65,297.52 USD (2019) |
46,194.73 USD (2019) |
|
|
Human Development Index |
|
0.929 |
|
|
Gender Development Index |
0.99144743381844 (2018) |
0.989058149729888 (2018) |
|
|
Gender Empowerment Measure |
0.762 |
0.785 |
|
|
Human Poverty Index |
0.926 |
0.632 |
From the above information, Canada and United States have some similarities and differences respectively. Canada records a much better economic growth and ability as compared to the United States properly because of the high democratic levels in Canada than in United States (Kumar, Lahiri, & Dogan, 2018). Additionally, Canada has a much lower HPI than United States and this means operating in Canada would grant the company a chance to growth.
Section Three: Market Considerations
Exchange Rates
|
Category |
The U.S. Dollar |
Canada |
|
Exchange Rate |
1 United States Dollar equals1.28 Canadian Dollar
|
1 Canadian Dollar equals 0.78 United States Dollar
|
Legal and Regulatory Considerations
It is a fact that both Canada and United States have strict federal laws and policies that locals and foreigners must comply for the business to be considered legal. Nevertheless, there is a slight difference in the sense that, the fact that Canada has a much lower exchange rate means that a business can import and export from Canada with much ease and makes more profits than in United States (Paul, & Mas, 2020). Secondly, Canada has a reliable political environment as compared to the United States. It is also easy to enter the Canadian market as one requires going through a well-laid down procedure and the people are friendly.
References
Kumar, V., Lahiri, A., & Dogan, O. B. (2018). A strategic framework for a profitable business model in the sharing economy. Industrial Marketing Management, 69, 147-160.
Paul, J., & Mas, E. (2020). Toward a 7-P framework for international marketing. Journal of Strategic Marketing, 28(8), 681-701.
