Chapter 7: Avoiding and Managing Common Mistakes and Problems
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
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
 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.