Chapter 3: International Competitiveness, Productivity and Quality
Pg 78-81
By H. Pagotto
Global Presence and Canada
A country with global presence is recognized internationally for its reliability, fairness, integrity and the standards of its companies’ products. Generally used in a positive way. Countries with a negative global presence may have non-democratic governments, unsafe and unfair working environments, lack of environmental protection, and political upheaval.
Canada’s global presence is important because it means other countries are aware of our products, standards and reliability and gives us access to worldwide capital and markets.
A company expanding internationally needs to develop a strong presence. International companies operate in a few countries only; global companies operate in several countries. “Going international” may make or break an organization.
Many companies set up distribution arrangements, offices and possibly manufacturing plants, as well as hiring local staff. A toll-free phone number, a web site, an ecommerce focus also demonstrate an international presence. An example is ING banking in Canada.
PepsiCo Inc. withdrew from some major markets, such as South Africa, after significant international losses. Not all companies’ expansion turns into growth and profit.
To build global presence that minimizes risks and maximizes profits, a company should develop a plan:
Which product will lead the way as the company “rolls out?”
Which markets should be entered first?
What is the best way to enter these markets?
How rapidly should the company expand internationally?
Turning presence into competitive advantage requires the pursuit of opportunities and to meet the related challenges. To adapt to a local market Baskin-Robbins sells green tea flavoured ice cream in Japan.
Competitive Advantage
To reach the ultimate goal of increased sales and profits, there must be a competitive advantage. The company must outperform their global competitors. Access to markets and distribution channels are important.
Canada is 8 th
among 80 countries in competitive growth from the 2002 World Economic
Forum Report.

Canada’s Gross domestic product (GDP) has slipped in comparison to the United
States and several European countries. Canada’s lower GDP means that a number of other countries are being more productive and are in a better position to compete internationally. Canada’s manufacturing sector has lagged and there is a lack of research & development (R&D). Canada has been slower to adopt new technologies and has been more dependent on services rather than manufacturing.
Competitiveness is linked to R&D by governments and companies. Innovation must be encouraged by productive management strategies. The National Research Council conducts R&D for the government.
Governments also support private R&D; for example, MD Robotics’ Canadarm for
NASA has given Canada stature and competitive advantage in space technology.
Governments usually insist on high quality and performance standards on their purchases and this stimulates companies to update their performance and environmental standards.