Veterans Electronics Inc. Expansion in to Canada

...

Gift giving is acceptable after the deal and or transaction is completed. Customary gifts include gifts from givers home country, meals to a nice restaurant, but flowers should be avoided because allergies and differences in meaning for flowers, example lilies are given traditionally at funerals and rose are romantic in nature. As for Human Resource department it a priority that they understand that in Canada the manager is not necessarily expected to be the most technically competent person in the team but will be judged more on his or her ability to manage the resource which is the team — interpersonal and man-management skills are considered of vital importance (Global Business Culture, n.d.)

Financial Forces

The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) signed in to law in 2014 only advances VEI route in to the international market place. Upon CETA’s entry into force, the EU will remove tariffs on 98 percent of its tariff lines. Once CETA is fully implemented, the EU will have eliminated tariffs on 99 percent of its tariff lines. Canada is also proud members of the North American Free Trade Agreement (NAFTA) and the World Trade Organization(WTO). In addition to CETA, NAFTA and the agreements of the WTO, Canada has also negotiated free trade agreements with Colombia, Chile, Costa Rica, Honduras, Jordan, Israel, Panama, Peru and the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland). Canada is currently in preliminary talks regarding free trade deals with India, Japan, South Korea, Turkey, Ukraine, Morocco, the Caribbean Community (CARICOM), the Dominican Republic, Singapore, the Andean Community, El Salvador, Guatemala and Nicaragua. Canada is also participating in the negotiation of the Trans-Pacific Partnership (Boscariol, 2014).

As an employer VEI will be required to both Provincial & Territorial Legislation and Federal deductions. Minimum wage varies in different provinces but they range between $9.50 and $11. The national average for males is $27.53 per hour and $23.98 for women though this disparity is more due to career choice then wage inequality. As an employer VEI will be mandated to both Provincial & Territorial Legislation and Federal deductions. Provincial & Territorial Legislation include but not limited to guidelines regarding the payment of wages; minimum wage thresholds; vacation pay rules; and guidelines for hours or work, breaks, and payment of overtime. VEI will also be responsible for withholding Federal tax; Canada Pension Plan contributions and Employment Insurance premiums (King, 2006).

Regarding distribution the Federal Goods and Services Tax (GST) is imposed at each stage of distribution. A vendor (registrant) must maintain books and records sufficient to determine its GST liabilities and collect GST from the purchaser at the rate of 5% of the amount payable for taxable supplies made in Canada. An importer is required to account directly for tax at the rate of 5% on taxable imported goods or services (Schieman & Silverson, 2017).

Physical and Environmental Forces

Canada’s Gross Domestic Product (GDP) is based on 30 percent goods and 70 percent services which is ideal for a company like VEI which will be servicing both markets.

As noted earlier Canada has a mere 4 citizens per square kilometer. Due to its geographical size, and many uninhabitable areas, Canada’s main population are city centric. Canada’s time zones are like those found in the United States which may poses communication and distribution disparities but can be offset with modern forms of communication and a well-tuned distribution plan. Due to low density populations outside of urban centers travel may have an adverse effect on distribution, supply and employee travel.

Canada’s climates make much of Canada uninhabitable year-round. The climate also has an adverse effect on crops which in turn leads to higher prices nutrient rich foods. This has the possibility to raise illness and injuries above those which we are accustomed to here in America. Canadas mountainous terrain will act as barriers in both transportation and communications but with enhanced technology this may not pose much of a problem.

Price competition is intense as big US retailers continue to enter the Canadian Marketplace. Their proximity, economy and transportation infrastructure are ideal for expansion. Mergers, acquisitions and joint ventures are occurring to create scale and improve competitiveness and with the increased emphasis on free trade VEI predicts a continued growth in Canada.

Another key aspect is Canada’s regulators are introducing new legislation related to consumer privacy (1983 Privacy Act), intellectual property protection (created the Canadian Intellectual Property Office (CIPO), and copyright (The Copyright Act of Canada) which is It is jointly administered by the Department of Industry Canada and the Department of Canadian Heritage.

Although Canada produces and ideal economic stability Canada’s rate of economic growth, like most countries across the globe, is much lower than before the 2009 global recession although electronic commerce continues to grow but there is concern about the high levels of personal and household debt most Canadians accumulate.

Canadian’s are more demanding of Canadian business practices and tends to reward those organizations that act in socially responsible manner where American business practices tend to be more focused on money and expansion. With the continued growth in modern technology there has been a dramatic growth in open source or free software mitigating the cost of many expensive name brand alternatives (Tuckwell & Marina, 2016).

Canada’s inflation rate has been hovering around 1 percent, historic lows on the global front, in contrast the United States inflation rate for July 2017 was about 2 and quarter percent. This low inflation rate should keep interest rates low for the foreseeable future. If VEI choose to utilize an Canadian bank rather than the bank VEI use locally here in the United States interest should not be a concern. Due to these low interest rates, is the key reason household debt is at an all-time high, Canadian’s literally charge everything to their cards.

Legal Forces

For most businesses, provincial laws have a greater impact than federal laws, since the provincial governments have power over property and civil rights, which includes contract law, labor relations, occupational health and safety, consumer protection, real estate transactions, land use, municipal law (municipalities derive

...