Globalization In Canada

Part A: Analyzing Challenges that Canadian Firms Encounter
The emergence of globalization has created many opportunities for businesses by increasing the accessibility of foreign markets. Businesses can receive many benefits by entering foreign markets but they can face several challenges as well. In order to achieve success abroad, businesses must have a strong understanding of the foreign market they wish to enter.
There is a strong appeal for many Canadian businesses to enter foreign markets. Specific locations abroad can help a company achieve cost minimization and quality maximization (Wild & Wild, 2016, p. 7). Cost minimization can be achieved by having access to lower cost workers and lower cost of production inputs. Canadian wages and the price of production inputs are relatively high in comparison to many foreign markets. By reallocating production facilities, Canadian companies can have access to less expensive factors of production (Wild & Wild, 2016,

This means that the business needs to understand the culture of the foreign market and develop cultural literacy (Wild & Wild, 2016, p. 43). Business managers must understand the values, beliefs, attitudes, and behaviours of the foreign market (Wild & Wild, 2016, p. 44). Failing to understand the foreign market’s culture can be detrimental to a business. It can result in offending foreign business managers, destroying business relationships, and failing to achieve market opportunities abroad.
Canadian businesses must also understand the foreign market’s political system and the potential challenges that it may cause. For example, in totalitarian governments, it is common for bribes to be paid to government officials (Wild & Wild, 2016, p. 76). Totalitarian governments can also have high levels of corruption making it dangerous and risky to partake in business in that country (Wild & Wild, 2016, p.