When a business decides to take its matters to another country a close study of the social and administrative specifics must be done. Canada and United States share the same border but at the same time, they are very unique countries. The social make-up of the two nations is different and the morals and values of the general public determine the success of a business. In turn, the businesses and social views lead to changes in the government and administration specifics.
Native Floral Group is a company that plans to take its business to Canada and this means that a lot of unique qualities of Canada must be taken into consideration. One of them can be seen in the taxation process. Canada has had an increase in personal taxation, which leads the whole system of taxes to become more progressive. The contrasting changes between Canada and the United States demand variability in the pre-tax trending, as well as adjustment to inflation and market fluctuations (Shoven, 2007).). The recent world crisis has also greatly affected the economy and so, Floral should implement a close study of the Canadian economy. Before opening its business there, the social needs of the people should be analyzed.
In a time when people prioritize their resources, it is important to keep in mind what people need and want.
A good way to increase the success of a company is to arrange a joint entire or a partnership with a Canadian flower business. This would unite the efforts, as well as familiarize Floral with the way business is run in Canada and the demands of the public. Another thing to keep in mind is the capital and how high it is.
A higher cost will determine the mobile resources available to the company and if the strategy is disarranged, it can create a downfall for the assets (Clancy, 2004).
The social relationship towards the United States’ company is another component that must be examined. People heavily rely on the relations between countries and policies that are made towards each other. The political expression, economic influences, and shared goals are frames of any business transfer. Presently, both Canada and the United States share an interest in moving forward in trading relations. Floral must take this into notice because the time can be very sensitive for a business to open up in a new location. The macro-policy has a great effect on the business and constantly forms fluctuating interest rates, speculating on the financial policies and trade agreements (Whittle, 1997). A key point is that a business is very much influenced by politics and governmental administration. Canada is a large importer of services and this fact has created substantial income, increasing the deficit and dividend transfer (Cameron, 1993). This makes the investment strategy much freer and Floral can benefit from that. The laws also play a significant role in businesses. The basis and principle of rules and regulations might limit certain policies that Floral has been practicing in the United States. This would require a change in the company structure that would be set up according to Canadian laws and public components of the business.
Overall, it is evident that Canada and United States are countries that are very similar but at the same time, there are unique qualities of each one. Floral should take a lot of care in the study of the market, economical system, and business administration before taking major steps.
References
Cameron, D. (1993). Canada Under Free Trade. Toronto, Canada: James Lorimer Company.
Clancy, P. (2004). Micropolitics And Canadian Business: Paper, Steel, And The Airlines. Peterborough, Canada: University of Toronto Press.
Shoven, J. (2007). Canada-U.S. Tax Comparisons. Chicago, United States: University of Chicago Press.
Whittle, J. (1997). Canada Business: The Portable Encyclopedia for Doing Business With Canada. San Rafael, World Trade Press.