Chapter 7: Avoiding and Managing Common Mistakes and Problems 7.4 INFRASTRUCTURE AND SERVICES Pg 235-238 Problems that a Canadian business may have in trading with another country are most often created by infrastructure (or lack of) in the other country. Before a company can trade or set up a business, they must send someone to be sure that everything they need is provided. Transportation Systems In order to get goods to a foreign market and distribute them in a country, you need good transportation systems. Not only should the equipment be good, but also facilities that repair them should be up to speed. If the target country has mountain terrain or widely separated urban centers, it should have a road or rail system in place. Airports should be near major urban centers and should have sufficient roads, public transit or taxis to reach these centers. The airports should have freight handling facilities and large passenger and cargo planes. Also, airport security should be strong in the freight area. Communication Systems For a business to communicate with its head office and facilities around the world, it should have good communication systems. Some methods of communication are: phone systems (cellular, satellite or regular), internet, fax or telex systems. Broadcast facilities relate to communication systems. Even though a business may use local wholesalers and distributors, if it is selling consumer products, It should know what media are available to carry advertising messages. Government Services Websites of the Canadian and U.S government provide great research sources for Canadian business contemplating trade with other nations. When encouraging, some countries provide a multitude of support facilities to connect foreign buyers and investors. Most governments offer financial help or tax incentives, but this is only proposed deal represents a direct capital investments opportunity for their country. However some nations seem to discourage business by the complexity of their bureaucracies. Other Services Business people who are planning an extended stay in another country should consider the following: Accommodation: i.e. Hotels Food: Restaurants that serve Western cuisine Health: what diseases are prevalent? (Inoculations needed?) Safety: Are the streets safe? Education: Does their education system produce competent people that could work for your business Business support services: translators, shipping agents, lawyers, sales agents Financial Services: reliable banking system; is Canadian currency easily transferable Official Canadian presence: Canadian embassy/consulate nearby Communication and business etiquette: What are local relationship customs that you should be aware of This information can be easily accessed on the internet but someone with first hand knowledge on the country you are traveling to is the best resource.