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International Business

Why choose Canada as a possibility to invest? I chose Canada because it is a country
relatively close to Mexico and the United States, and there are a lot of ways to send products to
Canada. The North American Free Trade Agreement (NAFTA) sets a free trade between Canada,
U.S. and Mexico. (Hill, 2009).
This report contains information about Canada that may help you to decide if it is good or
not to export and sell cupcakes there.
Stage 1 – Country Facts and Statistics
The first stage contains the most important information about Canada’s geographic,
demographic and economic characteristics.
Country name: Canada

Major cities
The major cities are Ottawa, Whitehorse, Yellowknife, Vancouver, Victoria, Edmonton,
Calgary, Saskatoon, Regina, Winnipeg, Thunder Bay, Windsor, Toronto, Oshawa, Montreal,
Quebec and Halifax. (Maps of World, 2012) (see figure 1)

Ottawa: is the capital of Canada, and the country's fourth largest city (Maps of World, 2012).
Ottawa lies in northeast North America, in the Province of Ontario, Canada. It is bordered by
the Ottawa River to the north, while the historic Rideau River and Rideau Canal meander
north to south through the city. (City of Ottawa, 2011)

Whitehorse: is home to some of the most spectacular scenery in Canada. Over 25,000
people enjoy living here. Its economic base includes mining, transportation services, tourism,
and government services. (City of Whitehorse, 2013)

Yellowknife: is a culturally rich capital thriving with diversity, and home to about 20,000
people. Located on the shores of the beautiful Great Slave Lake, only 512 km south of the
Arctic Circle. (Yellowknife, 2013)

Vancouver: is the third-largest city in Canada. It is a beautiful and vibrant city located on west
coast of Canada, surrounded by water from three sides. (Maps of World, 2012)

Victoria: is the Capital City of British Columbia. Located on the southern tip of Vancouver
Island. Victoria is one of the most uniquely special places in Canada with a natural beauty and
a temperate climate. (City of Victoria, 2013)

Edmonton: is the capital of Alberta and the second largest city of the province. It is located on
the banks of North Saskatchewan River. It occurs as the staging point for major oil sands and
diamond mining projects. Also, it is an important cultural and educational hub. (Maps of World,

Calgary: is the largest city in the province of Alberta in Canada . It is located in the south of
Alberta province. Calgary is also the largest metropolitan area between Toronto and
Vancouver. It is well-known to be a winter sports destination. (Maps of World, 2013)

Saskatoon: is situated on the banks of the South Saskatchewan River, which is crossed by
seven bridges within the city limits. It is Saskatchewan’s largest city with an
estimated population of 246,300 and growing (as of June 30, 2013). (City of Saskatoon, 2013)

Regina: is the capital of Saskatchewan, located in the south central area of the
province. The city covers an area of 118.4 sq. km. It borders the American states of Montana
and North Dakota. (City of Regina, 2013)

Winnipeg: Located in the heart of Canada, Winnipeg, the largest city in the province of
Manitoba, is a multicultural city, home to people from around the world. (The University of
Winnipeg, 2013)

Thunder Bay: Located on the north shore of Lake Superior. It is rich in people and resources,
and connects Northwestern Ontario to the world. (City of Thunder Bay, 2013)

Windsor: Located at the busiest border crossing in North America, Windsor has always been
one of Canada's most international cities. (University of Windsor, 2013)

Toronto: is the biggest city in Toronto and the capital of Ontario province. It is an educational
center with a number of colleges, universities, and other professional institutes. (Maps of
World, 2012)

Oshawa: The City of Oshawa is the largest city in Durham Region within the Greater Toronto
Area. Located 60 km from Toronto Downtown core. (City of Oshawa, 2013)

Montreal: Montreal is the biggest city in Quebec and the second biggest in Canada. The city
also serves as an important center for aerospace, pharmaceuticals, technology, design,
culture, tourism, film and world affairs. (Maps of World, 2013)

Quebec city: is the capital of Quebec and it is famous for its European charm and well-
preserved architectural treasures. The entire district, which is best explored on foot, is a living
history book. (Québec City, 2013)

Halifax: is the capital of the province of Nova Scotia, Canada. Halifax is located in the center
of the east coast of Nova Scotia facing the North Atlantic Ocean. (Munroe, 2013)

Figure 1
(Maps of World, 2013)
Provinces and Territories
Canada is a federation composed of ten provinces and three territories.

Region Province or Territory Capital City
Atlantic Region Newfoundland and
St. John’s
Prince Edward Island Charlottetown
Nova Scotia Halifax
New Brunswick Fredericton
Central Canada Quebec Quebec City
Ontario Toronto
Prairie Provinces Manitoba Winnipeg
Saskatchewan Regina
Alberta Edmonton
West Coast British Columbia Victoria
North Nunavut Iqaluit
Northwest Territories Yellowknife
Yukon Whitehorse
(Brock University, 2010)
There are nearly 600 public ports in Canada, with approximately 70% located in the eastern
half of the country. Most of Canadian ports are relatively small. (Government of Alberta, 2012)
The Association of Canadian Port Authorities: is the pre-eminent Association for the
advocacy and advancement of the Canadian Port Industry. ACPA members contribute greatly
to the local, regional and national economy of Canada. (Association of Canadian Port
Authorities [ACPA], 2013) These are some of its members:
 Port of Halifax: is an ice-free port with minimal tides and no currents that is one day closer
to southeast Asia. (ACPA, 2013)
 Port of Montreal: is located on one of the largest navigable waterways in the world – the
majestic St. Lawrence River – and offers the shortest route between major European and
Mediterranean ports and North American markets. (ACPA, 2013)
 Port of Oshawa: offers smooth and efficient access to markets in south central Ontario, the
northeastern United States and the entire world. (ACPA, 2013)
 Port of Prince Rupert: is strategically located on British Columbia’s north coast and has
excellent road and rail transportation systems to western and eastern Canada, and
proximity to major world markets. (ACPA, 2013)
 Port of Thunder Bay is an international seaport, 3,200 kilometers inland from the Atlantic
Ocean and at the head of the Great Lakes/Seaway System. TThunder Bay is a major
Canadian port, handling upwards of 9 million tons of cargo in a typical year. (ACPA, 2013)
 Port of Toronto: An average of 400 ships arrive each year. A new fast-ferry service has
been established between Toronto and Rochester with a new cruise terminal on port lands.
(ACPA, 2013)
 Port Metro Vancouver is Canada’s largest and most diversified Port and the largest export
port in North America. Port Metro Vancouver’s jurisdiction covers more than 600 kilometers
of shoreline bordering 16 municipalities, one treaty First Nation, and several First Nations.
(ACPA, 2013)
Canada had more than 1,419 airports, including 507 with permanent runways. (Encyclopedia
of the Nations, 2013e)
The major Canadian airports:
Location on Map Airport Province
Calgary Calgary International Airport Alberta
Montréal Pierre Elliott Trudeau
International Airpor
Ottawa Ottawa Macdonald-Cartier
International Airport
Québec Quebéc City Airport, Jean
Lesage International Airport
Toronto Lester B. Pearson
International Airport
Vancouver Vancouver International
British Columbia
(Nationsonline, 2013)
Canada has nearly 900,000 kilometers of road. The national highway system is made up of
over 38,000 kilometers of important national and regional highways. (Government of Canada,
The most important are:
 The Trans-Canada Highway: is the world’s longest national highway. The 8030-kilometer
(4990 mile) highway runs west and east through all ten provinces. The endpoints are
Victoria, British Columbia and St. John’s, Newfoundland. (Schulz Richard, 2011)
 The Yellowhead Highway: was constructed in the 1960s and opened in 1970. It begins
near Portage la Prairie, Manitoba, and heads northwest through Saskatoon
(Saskatchewan), Edmonton (Alberta), Jasper National Park (Alberta), Prince George
(British Columbia), and ends in coastal Prince Rupert, British Columbia. (Schulz Richard,

Rail lines
With 48,000 kilometers of track, Canada has one of the largest rail networks in the world (see
figure 2). Transport Canada regulations, standards and programs work to make their railway
system safe, secure, accessible, competitive and more environmentally responsible.
(Transport Canada, 2013)
There are two major privately owned transcontinental freight railway systems (UNIFOR Local
100 Rail Division, 2013):
 The Canadian National Railway: a transportation company that offers integrated
transportation services: rail, intermodal, trucking, freight forwarding, warehousing and
distribution. (Canadian National Railway Company, 2013)
 The Canadian Pacific Railway: was founded in 1881 to link Canada's populated
centers with the vast potential of its relatively unpopulated West. (Canadian Pacific,

Figure 2
VIA Rail Canada Inc. (2013)
Physical characteristics
 Canada occupies the northern part of the North American continent. It is bounded on the
north by the Arctic Ocean, on the west by the Pacific Ocean and Alaska, on the south by
the United States, and on the east by Newfoundland and the Atlantic Ocean. (YodelOut,
 The majority of Canada is still wilderness. This makes Canada a popular spot for hunting
and fishing. (Kidport, 2012)
 Niagara Falls is one of Canada's best-known tourist attractions. It is the largest falls in the
world, measured in volume of water. (Kidport, 2012)

 Canada includes a wide variety of land regions, vast maritime terrains, thousands of islands,
more lakes and inland waters than any other country, and the longest coastline on the
planet. (Worldatlas, 2013) (See figure 3)
The Appalachians extend from the New England states in the U.S. up through parts of the
Canadian provinces of New Brunswick, Newfoundland and Quebec. (Worldatlas, 2013)
The Canadian Arctic Archipelago is located north of the Canadian mainland on the
fringes of the Arctic Ocean. This group of some 36,000 islands is mostly part of the territory
of Nunavut. Baffin, Ellesmere and Victoria islands are the largest of the group, respectfully.
The terrain consists of tundra except in mountainous regions of the east. (Worldatlas,
The Canadian Shield, covering the eastern half of Canada’s landmass, is an ancient
bedrock base of gneiss and granite covered by a shallow layer of soil. Large areas of
coniferous (evergreen) forests and hundreds of rivers and lakes spread across this mostly
flat region. (Worldatlas, 2013)
The Canada Cordillera extends from the Rocky Mountains to the Pacific Ocean. The
Cordilleras are part of a huge mountain system extending from the Andes of South America
to the tip of Alaska. The Canadian Cordillera includes ranges of the Rocky Mountains, the
Coast Range and varied coastal mountains ranges and their many active volcanoes.
(Worldatlas, 2013)
The Rocky Mountains, about 3,000 miles in length, extend from the U.S. State of New
Mexico up through the western United States and on into the northernmost reaches of
Canada's British Columbia. The highest point in the Rockies is Mt. Elbert, located 10 miles
southwest of Leadville, Colorado. It stands at 14,433 ft. (4,399 meters). (Worldatlas, 2013)
The Great Plains slope east from the Rockies and extend to the edge of the Canadian
Shield and the western edges of the Appalachians. The land is generally smooth with large
treeless areas and sloping shallow river valleys. They extend across parts of Alberta,
Manitoba, Northwest Territories and Saskatchewan, and vast parts of the north central U.S.
(Worldatlas, 2013)

 Lakes
Great Slave Lake is the second-largest lake in the Northwest Territories of Canada behind
Great Bear Lake. It's the deepest lake in North America at 614 m (2,015 ft.), and the ninth-
largest lake in the world. (Worldatlas, 2013)
Great Bear Lake is the largest lake entirely within Canada; the third largest in North
America, and the seventh largest in the world. The lake has a surface area of 31,153 sq.
km (12,028 sq. miles) with a maximum depth of 446 m (1,463 ft.). (Worldatlas, 2013)
Lake Winnipeg is located in southern Manitoba near the city of Winnipeg. It's 428 km (266
mi) long and has an area of 24,390 sq. km (9,417 sq. mi). This very shallow lake is fed by
dozens of rivers, including the Red, Saskatchewan, and Winnipeg. It's drained by the
Nelson River, which flows northwest to Hudson Bay. (Worldatlas, 2013)

 Rivers
The Columbia River, (1,152 miles) (1,857 km) in length, is a wide, fast-flowing river rising
in the Canadian Rockies of southeast British Columbia. It flows rapidly south through the
State of Washington, then forming the natural border between Washington and Oregon.
(Worldatlas, 2013)
The Fraser River of British Columbia rises in the Canadian Rockies near Yellowhead Pass,
and then flows in a variety of directions (generally south), finally turning west to empty into
the Strait of Georgia, just south of Vancouver. It's (850 miles) (1,368 km) in length.
(Worldatlas, 2013)
The MacKenzie River is the longest river in Canada and dissects the Northwest Territories.
It flows generally northwest into Mackenzie Bay and the Beaufort Sea. It's (1,200 miles)
(1,800 km) in length. (Worldatlas, 2013)
The St. Lawrence River, 744 mi (1,197 km) in length, flows southwest to northeast. It
drains the Great Lakes and connects the Great Lakes with the Atlantic Ocean. (Worldatlas,
The Yukon River rises in the southwestern edge of the Yukon Territory, flowing northwest
across the border into Alaska. This massive river continues southwest across central
Alaska, ending at the Bering Sea. Even at a length of (1,265 miles) (2.035 km), most of it is
navigable, however, it remains frozen from October through mid-June. (Worldatlas, 2013)

Figure 3
Description: Physical Map of Canada showing mountain ranges, plateaus, rivers, plains etc.
(Maps of World, 2008-09)
 Canada is located in 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. Its total land area of 9,984,670 sq km makes it the second-
largest country in the world. (Central Intelligence Agency [CIA], 2013)
 Mexico has a total land area of 1,964,375 sq km. (CIA, 2013)
 If we do a cross-multiplication, we can conclude that Mexico is almost the 20% of the
Canadian territory.
9984670 - 100%
1964375 - X%
Time zone
Canada uses six primary time zones(, Inc., 2013)
. From east to west they are (see figure 4):
 Newfoundland Time Zone (-3.5)
 Atlantic Time Zone (-4)
 Eastern Time Zone (-5)
 Central Time Zone (-6)
 Mountain Time Zone (-7)
 Pacific Time Zone (-8)
(, Inc., 2013)
When it is noon in Monterrey, it is:
 2:30 pm in the Newfoundland Time Zone
 2 pm in the Atlantic Time Zone
 1 pm in the Eastern Time Zone
 Noon in the Central Time Zone
 11 am in the Mountain Time Zone
 10 am in the Pacific Time Zone

Figure 4
(, Inc., 2013)

Climate/weather conditions
Canada’s climate is very varied and this great expansive country includes a collection of
extremes. Much of the north has an arctic climate that is particularly harsh, and ground that is
permanently frozen. The south regions enjoy four distinct seasons. In most of the country,
winter lasts longer than summer; yet when summer comes, it can be very hot, producing lush
growth. Rainfall varies from light to moderate, and there are heavy snowfalls in some areas.
(Brock University, 2010)
Population and growth rate
 Canada’s population is 34,568,211 (July 2013 est.). (Central Intelligence Agency [CIA],
 Mexico’s population is 116,220,947 (July 2013 est.). (CIA, 2013b)
 If we do a cross-multiplication, we can conclude that Canada’s population is almost
the 30% of Mexico’s population.

116220947 - 100%
34568211 - X%

 In Canada the population growth rate is 0.77% (2013 est.). (CIA, 2013a)
Age distribution
In 2013, the distribution of the population according to age is:
 0-14 years: 15.5% (male 2,753,263/female 2,617,600)
 15-24 years: 12.9% (male 2,285,268/female 2,160,005)
 25-54 years: 41.4% (male 7,253,587/female 7,067,997)
 55-64 years: 13.3% (male 2,285,072/female 2,329,760)
 65 years and over: 16.8% (male 2,574,216/female 3,241,443) (2013 est.)

(CIA, 2013a)

(Central Intelligence Agency, 2013a)

Life expectancies
The life expectancy of Canadians is 81.57 years, but there are some differences between
male and female. (CIA, 2013a)
For male the life expectancy is 78.98 years and for female is 84.31 years. (CIA, 2013a)
Rural vs. urban
Canada has beautiful rural areas and many small towns to live but only the 19% of the total
population live there. The other 81% of the population live in urbanized areas. (CIA, 2013a)
Literacy rates
Literacy is the ability to read and write at a specified age. (CIA, 2013c)
In Canada:
 42% of adults between the ages of 16 and 65 have low literacy skills.
 55% of working age adults is estimated to have less than adequate health literacy
skills. Shockingly, 88% of adults over the age of 65 appear to be in this situation.
 Less than 20% of people with the lowest literacy skills are employed.
(Canadian Literacy and Learning Network, 2005)
Ethnic groups
More than 80% of the population is Canadian-born. In general, the percentage of the
population born outside Canada increases as one goes westward from Newfoundland to
British Columbia. (Encyclopedia of the Nations, 2013b)
People of British (including Irish) origin make up about 28% of the total population; those of
French origin make up 23%. Other European groups account for 15% of the total populace.
About 26% of the population is from mixed backgrounds. Other, mostly Asian, African, and
Arab, make up about 6% of the population. Amerindians constituted about 2% of the
population. (CIA, 2013a; Encyclopedia of the Nations, 2013b)
Religious groups
Canada is a country without an official religion; in fact in Canada there is a religious pluralism.
 Roman Catholic 42.6%
 Protestant 23.3% (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%
(Central Intelligence Agency, 2013a)
Languages spoken
Canada has two official languages: English and French.
 58.8% of the population speaks English
 21.6% speaks French
 19.6% speaks other languages
(Central Intelligence Agency, 2013)
GDP per capita
GDP per capita is gross domestic product divided by midyear population. The GDP is the
sum of gross value added by all resident producers in the economy plus any product taxes
and minus any subsidies not included in the value of the products. It is calculated without
making deductions for depreciation of fabricated assets or for depletion and degradation of
natural resources. (The World Bank, 2013)
The Gross Domestic Product per capita in Canada was last recorded at 35992.10 US dollars
in 2012. (Trading Economics, 2013a)
Inflation rate
The inflation rate is one of the most important economic forces consistently weighing on the
value of a nation's currency. (Investing for Beginners, 2013)
The inflation rate in Canada was recorded at 1.10% in September of 2013. Inflation Rate in
Canada is reported by the Statistics Canada. (Trading Economics, 2013b)

Unemployment rate
The unemployment rate measures the share of workers in the labor force who do not
currently have a job but are actively looking for work. (Economic Policy Institute, 2013)
Unemployment Rate in Canada decreased to 6.90 percent in September of 2013 from 7.10
percent in August of 2013. Unemployment Rate in Canada is reported by the STCA -
Statistics Canada. (Trading Economics, 2013c)
The Canadian Dollar ($CAD) is the official currency of Canada. The Canadian dollar (C $) is
a paper currency of 100 cents. There are coins of 1, 5, 10, 25, and 50 cents, 1 dollar and 2
dollars, and notes of 2, 5, 10, 20, 50, 100, and 1,000 Canadian dollars. (Encyclopedia of the
Nations, 2013a)
US$/CAN$ closing rate summary
Date USD -> CAD CAD -> USD
Latest closing 2013-10-18 1.0294 0.9714
(Bank of Canada, 2013)
Top import partners
 The United States was Canada’s largest supplier of foreign- produced products.
 China was Canada’s second-largest merchandise import supplier.
 Mexico was in third place, increasing its market share by a full percentage point
between 2009 and 2010, rising to a 5.5-percent market share on the strength of a
33.7-percent (or $5.6 billion) increase in shipments to Canada.
(Foreign Affairs, Trade and Development Canada, 2011)
Top export partners
About 25.6 percent of Canada's outputs of goods and services are exported. The top three
export partners are:
 The United States remained Canada’s largest export trading partner
 The United Kingdom, which continued to be Canada’s second-largest destination
 China retained third place among Canada’s largest export destinations
(Foreign Affairs, Trade and Development Canada, 2011)
Stage 2 – Political Profile
The second stage contains information about Canada’s government, human rights, and political
and legal issues.
Government Type
Canada is a democratic constitutional monarchy, with a Sovereign as head of State and an
elected Prime Minister as head of Government. It has a federal system of parliamentary
government. Government responsibilities and functions are shared between federal,
provincial and territorial governments. The Monarchy and the Executive, Legislative and
Judicial branches of Government carry out federal responsibilities. (Government of Canada,
Head of state
Constitutional Monarchy
 Sovereign- Queen Elizabeth II: Monarch, Leader of Commonwealth, Canada's formal
Head of State, Head of both the Executive and Legislative branches
 Governor General- His Excellency the Right Honorable David Johnston - Viceroy -
represents the Queen in Canada and carries out the duties of head of state.
(Government of Canada, 2013a)
Date government elected or appointed
The government was elected in the 41st General Election on May 2, 2011. (Elections
Canada, 2013)
Date of next national election
The next Canadian elections are scheduled on Monday October 19, 2015. (Munroe, 2012)
Country’s views on trade
Canada's exports are highly diversified; the principal export groups are industrial goods,
forestry products, mineral resources (with crude petroleum and natural gas increasingly
important), and agricultural commodities. Imports are heavily concentrated in the industrial
sector, including machinery, transport equipment, basic manufactures, and consumer goods.
Trade balances are almost invariably favorable. (Encyclopedia of the Nations, 2013c)
In 1989, the United States and Canada signed a free trade agreement; and in 1994 the
United States, Canada, and Mexico signed the North American Free Trade Agreement
(NAFTA). (Encyclopedia of the Nations, 2013c)
Tariffs, quotas, embargoes
In Canada, there are 18 tariff treatments. Sixteen of the tariff treatments will lower the rate of
duty normally payable on imported goods, as a result of a free trade agreement or other
preferential treatment Canada provides to beneficiary countries.
 Most Favoured Nation (MFN) applicable to all signatories of the World Trade
Agreement (WTO)
 General Tariff (GT) rate of 35% applicable to any countries that have not signed the
 Australia Tariff (AUT)
 New Zealand Tariff (NZT)
 Commonwealth Caribbean Countries Tariff (CCCT) applicable to certain Caribbean
 Least Developed Country Tariff (LDCT) applicable to 49 least developed developing
 General Preferential Tariff (GPT) applicable to developing nations
 NAFTA United States Tariff (UST)
 NAFTA Mexico Tariff (MT)
 NAFTA Mexico-United States Tariff (MUST)
 Canada-Israel Agreement Tariff (CIAT)
 Chile Tariff (CT)
 Costa Rica Tariff (CRT)
 Iceland Tariff (IT)
 Norway Tariff (NT)
 Switzerland-Liechtenstein Tariff (SLT)
 Peru Tariff (PT)
 Colombia Tariff (COLT)
(Omnitrans Inc., 2011)
Political issues:
Political situation
Canadian political culture is in some ways part of a greater North American and European
political culture, which emphasizes constitutional law, freedom of religion, personal liberty,
and regional autonomy; these ideas stemming in various degrees from the British common
law and French civil law traditions, North American aboriginal government, and English civic
traditions, among others. (Howlund International Corp., 2013)
Peace, order, and good government are the stated goals of the Canadian government.
These words reveal much about the history of Canadian political culture. There is a strong
tradition of loyalty, compromise and tolerance in Canadian political culture.(Howlund
International Corp., 2013)
Canada ranks among the least corrupt countries in the world, while Afghanistan, North Korea
and Somalia are among the most crooked, according to a new report released Wednesday
by a non-profit organization that tracks political corruption. (Gregory, 2012)
For the sixth year in a row Canada placed in the top 10 least corrupt countries, tied for ninth
with the Netherlands. Among the Americas, however, Canada was on top, ahead
of Barbados and the United States. (Gregory, 2012)
Military role
The Canadian Armed Forces: protect Canada, defend North America in co-operation with
the U.S., and contribute to international peace and security. On any given day, more than
1,300 Canadian soldiers, sailors, airmen and airwomen are currently serving with task forces
deployed on overseas operations. (Canadian Forces, 2013)
Political issues affecting business climate
At this moment, Canada doesn’t have any political issues affecting its business climate. For
this reason, Canada is a good place to do business.
Human rights:
Human rights
The Canadian Human Rights Commission promotes the principle of equal opportunity and
works to prevent discrimination in Canada by: promoting the development of human rights
cultures; understanding human rights through research and policy development; protecting
human rights through effective case and complaint management; and representing the public
interest to advance human rights for all Canadians. (Canadian Human Rights Commission,
The Canadian Human Rights Tribunal is separate and independent from the Commission.
The Tribunal acts like a court and is responsible for holding hearings and deciding on cases
that it receives from the Commission. Only the Tribunal has the authority to order a remedy
or award damages. (Canadian Human Rights Commission, 2013)
Child labor issues
The Government of Canada has not yet ratified the International Labour Organization (ILO)
Convention 138 on Minimum Age. It has an obligation to ratify this Convention based on its
membership in the ILO and its adoption of the ILO “Fundamental Principles and Rights at
Work.” Today, Canada remains one of only 27 countries, which have not ratified Convention
138, along with the likes of India, Iran, Mexico, and Myanmar. (Canadian Labour Congress,
Gender issues
Canada is a world leader in the promotion and protection of women’s rights and gender
equality. These issues are central to Canada’s foreign and domestic policies. Canada is
committed to the view that gender equality is not only a human rights issue, but is also an
essential component of sustainable development, social justice, peace, and security. These
goals will only be achieved if women are able to participate as equal partners, decision
makers, and beneficiaries of the sustainable development of their societies. (Foreign Affairs,
Trade and Development Canada, 2013)
Legal issues:
The federal government is redoubling its efforts to combat corruption and bribery by tabling
amendments to the Corruption of Foreign Public Officials Act (CFPOA). In its pursuit of "an
aggressive, pro-trade agenda," the federal government wants to make clear that Canadian
businesses are expected to "play by the rules." (Mas, 2013)
Copyright infringement and other intellectual property issues
The Canadian Intellectual Property Office (CIPO), a Special Operating Agency (SOA)
associated with Industry Canada, is responsible for the administration and processing of the
greater part of intellectual property in Canada. CIPO's areas of activity include: Patents,
Trademarks, Copyright, Industrial designs and Integrated circuit topographies. (Canadian
Intellectual Property Office, 2013)
The Canadian Food Inspection Agency (CFIA) manages another type of intellectual
 Plant breeders' rights apply to certain new plant varieties.
(Canadian Intellectual Property Office, 2013)
Labor standards
Employment standards are the minimum standards established by law that define and
guarantee rights in the workplace. Each province and territory has its own legislation.
(Service Canada People serving people, 2013)
Most workers in Canada (about 90 percent) are protected by the employment laws of their
province or territory. The remainders are in jobs covered by federal laws. (Service Canada
People serving people, 2013)
Employment standards legislation covers rights in areas such as hours of work and overtime
pay, minimum wage, pay, vacation time and vacation pay, public holidays, coffee and meal
breaks, pregnancy leave and parental leave, personal emergency leave, family medical
leave, termination notice and termination pay.(Service Canada People serving people, 2013)
Stage 3 – Marketing Your Product in Canada
This stage contains information about the Canadian culture, certain points you should know in
order to make business with Canadians and some extra information that is important to sell
cupcakes there.
Languages spoken
Canada is a bilingual country. Its official languages are English and French. Approximately
58.8% of the population speaks English and 21.6% speaks French. (Central Intelligence
Agency, 2013)
Business language
English and French are both official languages of business in Canada. However, all
international business is conducted in English. (eDiplomat, 2013)
Acceptable and unacceptable topics of conversation
The weather is usually a good conversation starter and staple of "small talk." (C & K
Management Limited, 2002)
Golf is a popular sport, especially among businesspeople. Moreover, the golf course is often
a venue for business discussions and deals. (C & K Management Limited, 2002)

Welcome Topics of Conversation:

 Positive comments about Canada and Canadians in general
 Sports--popular sports include hockey, football, baseball, basketball, golf, and tennis
 Business
 Weather
 Geography
 Travel
 Movies
 Books
(C & K Management Limited, 2002)
Topics to Avoid:
 Making comparisons that emphasize Canada's inferiority or similarity to the U.S.
 Quebec separatism/other conflicts between French and English Canada
 Religion
(C & K Management Limited, 2002)
Non-verbal communication
 During a conversation, if you want to convey interest and sincerity, you can maintain
an eye contact that is not too intense. (C & K Management Limited, 2002)
 The standard distance between two people should be two feet. French Canadians,
however, may stand slightly closer. (C & K Management Limited, 2002)If you see an
acquaintance at a distance, a wave is the appropriate acknowledgement. (C & K
Management Limited, 2002)
 Keep in mind the fact that friends of the same sex do not hold hands. It could imply a
sexual advance. (C & K Management Limited, 2002)
 If you need to point, use the index finger. Pointing at other people, however, is often
considered unacceptable. (C & K Management Limited, 2002)
 To beckon someone, ensure that you wave with your fingers curled toward you and
that your palm is facing up. (C & K Management Limited, 2002)
 The "O.K." sign, and the "thumbs up" sign are two popular gestures used for
expressing approval. (C & K Management Limited, 2002)
 To wave good-bye, move your entire hand facing outward. (C & K Management
Limited, 2002)
 If you want to give the "V" for victory sign, do so with the palm facing out. Attempting
this gesture with the palm inward may cause offense. (C & K Management Limited,
 Most Canadians prefer to sit in a casual manner. For example, you may observe them
sitting with the ankle of one leg over the knee or resting their feet on chairs or desks.
(C & K Management Limited, 2002)
 Generally speaking, Canadians are more reserved than Americans. Canadians
generally don't touch very much when conversing. Maintaining a certain amount of
personal space is important. (eDiplomat, 2013)
 French Canadians are generally more animated and expressive than other
Canadians. (eDiplomat, 2013)
 Take off your hat or sunglasses when speaking with someone. (eDiplomat, 2013)
 Some gestures have different meanings in Quebec. For example, "thumbs down" is
considered offensive in Quebec, as is slapping an open palm over a closed fist. Like
the rest of their countrymen and women, French-Canadians use the "thumbs up" sign
to mean "okay. "The "okay" sign made with the index finger and thumb means "zero"
in Quebec. (eDiplomat, 2013)
 In Quebec, sit straight with your legs crossed at the knee, or with your knees together.
Don't sit with your legs apart, or with your feet propped up on tables or chairs.
(eDiplomat, 2013)
 It's considered bad form by many in Quebec to talk with your hands in your pockets.
(eDiplomat, 2013)
 Sneeze or blow your nose as quietly as possible using a handkerchief or tissue. If
possible, leave the room. Do not yawn or scratch in public. Toothpicks, nail clippers,
and combs are never used in public. (eDiplomat, 2013)
Use of humor
Canadians are overall a polite people, and slightly more reserved than their southern
neighbors. The values of the country are largely respect, peace and good government.
(Monster Canada, 2013)
Business customs
Meetings and Greetings:
 In general, Canadians are more reserved and polite than Americans, and take matters
of etiquette a little more seriously. (eDiplomat, 2013)
 A firm handshake is the usual contact when first meeting a business associate. Both
men and women greet with a handshake, although women may acknowledge you with
a nod of the head rather than a handshake. (Monster Canada, 2013)
 Eye contact is important. (Monster Canada, 2013)
 Shaking hands is also common for first meetings in social situations. Men and women
often embrace and kiss lightly on the cheek when meeting if they are related or good
friends. Men may formally embrace old friends or family. (Monster Canada, 2013)
 In Quebec, friends or acquaintances will kiss on both cheeks when meeting and
leaving. This happens between female friends and between men and women, but not
between male friends. (Monster Canada, 2013)
 When a woman enters or leaves a room, it is polite for men to rise. Men normally offer
their hands to women. (eDiplomat, 2013)
 In Quebec, kissing on the cheeks in the French manner is quite common. (eDiplomat,
 An older French Canadian man may kiss the hand of a woman. Accept this gesture
graciously. A foreign man shouldn't kiss the hand of a French Canadian woman, who
would be quite shocked. (eDiplomat, 2013)
 Canadians are somewhat more formal than Americans with regard to names and
titles. Use last names and appropriate titles until invited by your Canadian hosts or
colleagues to use their first names. Only close friends and family normally use first
names. Western Canadians may use first names more frequently than other
Canadians. (eDiplomat, 2013)
 In Quebec, coworkers of similar status generally use first names in private, but always
last names in public. The formal "you" is almost always used in a business setting,
even after 20 years. (eDiplomat, 2013)
 Academic titles and degrees are important to French Canadians. You should know
and use them properly. (eDiplomat, 2013)
 In business situations, a handshake is used for greetings or introductions. Men usually
wait for women to offer their hand before shaking hands. (C & K Management Limited,
 Introduce people in business based on rank not gender. (Monster Canada, 2013)
 In Canada, a person's authority is related to his or her position and responsibility.
Women occupy the same range of positions as men and have the same kinds of
authority. People do not have authority just because of their name, status, social class
or sex. (Monster Canada, 2013)
 An open, cordial manner is usual when dealing with Canadian business people. (C &
K Management Limited, 2002)
 It is considered alright to move to a first-name basis, but the best policy is to wait for
your Canadian colleagues to invite you to do so. (C & K Management Limited, 2002)
 Among French Canadians, use courtesy titles such as "Monsieur" or "Madame",
followed by the last name. (C & K Management Limited, 2002)
 If you are unsure of a woman's marital status, it would be advisable to use "Ms."
(pronounced "Miz"), followed by her last name. If a woman dislikes this term, she will
usually tell you her preference. (C & K Management Limited, 2002)
 Despite the fact that first names are used over the telephone, French Canadians may
revert to using surnames when meeting in person. (C & K Management Limited, 2002)
Gift giving:
 Traditionally, business gifts are given after you close a deal. Gifts, however can be
also presented upon your arrival. (C & K Management Limited, 2002)
 It is appropriate for a person to unwrap the gifts and show it to everyone present. (C &
K Management Limited, 2002)
 Thoughtfully selected gifts, preferably from your home country, are the best choices.
(C & K Management Limited, 2002)
 For business associates, good choices include items of use for the office and a bottle
of liquor or wine. (C & K Management Limited, 2002)
 Taking someone out for a meal or other entertainment is another popular gift. (C & K
Management Limited, 2002)
 Bring flowers, fine wine or chocolates for the hostess when invited to a Canadian
home. Avoid red roses (associated with romantic love) and white lilies (associated
with funerals). (eDiplomat, 2013)
 Gifts for women such as perfume or clothing are usually inappropriate because these
selections are considered far too personal. (C & K Management Limited, 2002)

 Comfortable, tasteful clothing is the norm. (C & K Management Limited, 2002)
 A conservative, well-dressed, appearance is important in Canadian business culture.
(C & K Management Limited, 2002)
 Some professions allow casual dressing, but if you are not sure it is advised that you
adhere to formal dressing. (C & K Management Limited, 2002)
 Suits and ties are the standard attire for men. (C & K Management Limited, 2002)
 Business suits or dresses are often the standard attire for women. (C & K
Management Limited, 2002)
 Canadian winters can be quite cold in many regions and dressing warmly is essential.
During this season, ensure that you bring a coat and pair of gloves. It is also a good
idea to take a pair of boots with good treads to help you walk with ease through the
ice, snow, and slush you are likely to encounter on the pavement. (C & K
Management Limited, 2002)
 During their leisure time, Canadians dress casually, it is fine if you are dressed in
jeans, t-shirts, sweatpants, shorts, and running shoes. These are acceptable in public.
(C & K Management Limited, 2002)
 Canadians avoid fragrances in a business setting. Perfume, aftershave, and heavily
scented personal care products such as shampoo and hairspray should be avoided,
or at least used sparingly. It's often believed that perfume is worn to cover up poor
personal hygiene. The presence of fragrance can also be a health hazard to
individuals with asthma, a relatively common condition in Canada. Many jurisdictions
in Canada forbid the wearing of scented products in hospitals and doctors' offices. (C
& K Management Limited, 2002)

More tips:
 People stand in line when waiting for the bus, to buy tickets, at the store or bank. It is
considered very rude to jump the line or go ahead of someone who was there before
you. (Monster Canada, 2013)
 Smoking is not allowed in offices, most restaurants, and even bars (with the exception
of Quebec). When out in a public space, ask your companion before lighting up. If
visiting people in their home, always ask for permission to smoke. (Monster Canada,
 Be on time. Canadians will not wait more than 10 to 15 minutes for someone who has
arranged to meet them for business. Your supervisors and co-workers will be angry if
you are always late for work. For social invitations, people expect that you will arrive
within approximately half an hour of the stated time. If you are going to be late, phone
and advise the person expecting you. (Monster Canada, 2013)
 People usually set up meetings or arrange visits. It is not common to just arrive
without an invitation. (Monster Canada, 2013)
 Be approachable and accessible. Return phone calls and be polite and friendly in
hallways. (Monster Canada, 2013)
 Honour commitments. Do what you say you will do. (Monster Canada)
 Do your homework about Canada. Most Americans are appallingly ignorant of
Canadian history, culture and geography. (eDiplomat, 2013)
 Recognize that important regional differences exist in Canada and prepare to adapt.
(eDiplomat, 2013)
 When in Quebec, learn a little French; Québécois greatly appreciate it when you take
the effort to talk to them in their native language. (eDiplomat, 2013)
 Do not use the term "Native Americans" to refer to indigenous peoples. Many
Canadians find the term offensive. Canadians refer to members of these groups as
"people of the First Nations." (eDiplomat, 2013)
 Do not take sides in debates about contentious national issues (especially when they
concern such issues the status of Quebec, the place of the French and English
languages in Canadian society, etc.). (eDiplomat, 2013)
 Business cards are commonly exchanged in Canada. (eDiplomat, 2013)
 For Quebec, print your business cards in English or French, including your academic
degree(s) and/or title. A double-sided business card (one side in English, one side in
French) is best. (eDiplomat, 2013)
 Canadians get down to business quickly. Meetings are well organized, and
extraneous discussion is kept to a minimum. A premium is placed on time. (eDiplomat,
 Business communication is quite direct in Canada, but more reserved than in the
United States. Letters and telephone calls should be direct and succinct. Pleasantries
are dispensed with very quickly. (eDiplomat, 2013)
 Business culture varies somewhat throughout Canada, depending on the region.
(eDiplomat, 2013)
 In restaurants: Gratuities are seldom included in Canadian restaurants. It is
customary to tip approximately 15% on the total bill before tax, 20% for exceptional
service. (tripadvisor, 2013)
 In hotels: It is also a good idea to tip in hotels. Tipping at hotels does not stop with
the hotel staff that brings baggage to a guest room. (tripadvisor, 2013)
 For other services: Tipping is also customary for other service providers such as
hairdressers, manicurists, aestheticians and taxi drivers. In these cases
the percentage of tip is really up to the individual, but 10% minimum is common.
(tripadvisor, 2013)
Family roles
Family life researchers report the notion of “women’s work” is losing traction as husbands
and wives challenge the old rules about gender-based roles. A new national study shows 56
per cent of Canadian men are now assuming primary or partial responsibility for household
grocery shopping. More fathers are doing diaper duty than ever before, other research shows,
and the proportion of couples in which women are the primary breadwinners is now three in
10, up from just one in 10 in 1967 and two in 10 during most of the 1980s. (,
Business negotiations
Businesspeople negotiating with Canadians should be well informed and knowledgeable
about the details of their proposals. Thoroughness is appreciated and directness is also
valued. Canadians do not positively view evasive answers. (Monster Canada, 2013)

It is important for all businesspeople to avoid exaggerating the strengths of their company or
the benefits of their product. (Monster Canada, 2013)
Other information, which is pertinent/important
Wheat, common name for members of genus Triticum of the grass family (Gramineae) and
for the cereal grains produced by these grasses. Canada is the world's sixth-largest producer
and one of the largest exporters of wheat, producing annually an average of over 25 million t
and exporting about 19 million t. (The Canadian Encyclopedia, 2012)
Stage 4 – Recommendations and Conclusions
With this investigation I got to the conclusion that Canada is an excellent place for “Sketch Your
Cupcake” to do business and to export, sell and produce cupcakes.
First, Canada is an excellent place to do business because their economy works very good,
Canadians are very polite and they don't have a lot of issues. Also, Canada is a place where all
the international businesses are conducted in English.
Second, Canada is a good place to sell cupcakes because of their weather. In most of the country,
winter lasts longer and when it is cold, people usually eat more cupcakes, cakes, bread or cookies
accompanied with hot milk or coffee.
Third, Canada is an excellent place to produce cupcakes because it is the world's sixth-largest
producer of wheat and one of the raw materials you need to produce cupcakes is the wheat.
In general Canada is one of the best places to export your products, but you need to always
remind that Canadians are very polite and they expect you to give them the same treatment.