Cultural Differences in Business

The Philippines is located in a tropical area giving it a climate that can sustain many different kinds of fruits and things that a temperate and arctic country like Canada would never be able to produce. When doing business in either of these countries you must take into consideration the culture that is the foundation of a country, the cost of doing business, the business practices in both countries, as well as the ethics of business that is in both countries. Knowing all of these things will help you to succeed and have a better business plan when conducting business in these two countries. Culture should be the basis of any business plan.

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When conducting business In a foreign country a businessman should always focus on the various parts of that particular country’s culture. Canada and the Philippines are both alike and different In many aspects. Canada’s mall languages are English and French while the Philippines speak both English and the native tongue Toga. The climate can also influence a culture. The Philippines are located in a tropical area where there aren’t any distinct seasons. Canada is located in an area with different kinds of landscapes ranging from plains and mountains to arctic frozen tundra which has all four seasons in most areas.

Both countries predominantly practice Christianity as their main religion so differences in religion would most likely not affect business. The government of each country can also play a big role, especially In the Philippines as you will need to be up to date on current events with politics. The Philippines Is a democracy while Canada has a Monarch and bicameral legislature. While doing business In either of these countries It would be very wise to get used to the cultures that have been adopted by each country. The cost of doing business in the Philippines and Canada can have a big impact when making a business plan.

Knowing how much money it will cost to export and import goods can help you develop a good business plan. In Canada the price to import goods that include paper work and all fees is about $1660 (US dollars) per container. To export with the same procedures would be roughly $1610. That is with an average duty rate of 8. 56% and a varying sales tax from 5-15% depending on the providence. In the Philippines it would cost around $660 (US dollars) per container to import odds with paperwork and all fees and to export would be $585. That is with an average duty rate of 10. 5% and a sales tax of 12%.

Knowing all these numbers Is essential when building a business plan. The business practices of a nation are something a businessman should take Into account before pursuing In anything business related. Language and culture can be a barrier that must be overcome and learned to better a business transaction. Language is Toga, but they prefer to use English in business settings as they are the third largest English speaking language in the world. Canada is also bilingual as most residents speak both English and French. They use both languages in any setting whether it is business, political, or Just casual talk.

Knowing the proper greetings and compliments in the native languages of both countries may be advised for the small talk that will ensue before business is done. Getting to know how to dress for meetings and how business is done in both countries is also essential. For a foreigner in the Philippines they would want to wear a long sleeve shirt with a necktie. Wearing a full suit would be a little intimidating for a local and would be uncomfortable because of the hot climate. In contrast, while in Canada a business suit would be the right apparel to wear when at a meeting.

Once at a meeting in the Philippines small talk is almost essential to getting a deal done. Before and after the negotiations a businessman should expect casual talk and personal questions about their life with a local Filipino. As in most countries, being courteous and polite will keep meetings and negotiations comfortable for both parties. Both countries adhere to the same types of courtesies. Using the right titles, eye contact, and body engage will leave a good impression while doing business in both Canada and the Philippines.

The many different business practices of a country should be given full attention before going abroad and doing business. This will help make the lasting relationships as well as a good business partnership. Business ethics can make or break a deal and knowing how a country does business ethically is good to research before going to the negotiating table. Canadians are all about winning on both sides. They will negotiate business so that both sides are in a win/win situation. This is because most people in Canada really just want to avoid conflict, and will do whatever it takes to make everyone happy during a deal.

The locals in Canada are also very resolute in sticking to established company rules and laws. They will not stray from company policies while doing business. This makes Canada a very honest and sturdy partner to do business with. In the Philippines they tend to be very similar to that of Canada; however, Filipinos will do things how they want and when they want. The locals do not worry about getting things done in a timely manner when doing business, so patience is a key attribute while doing business in the Philippines.

Doing business in other countries can be very intimidating if a businessman or businesswoman has not studied up on the country that they will be conducting business in. Knowing the costs, business practices, and business ethics associated with each country will help in the process of making a good business plan and making a deal. Canada and the Philippines are two countries with many differences in culture, but doing business is still business no matter where it is being done at. As long as both parties understand each other’s cultures and business practices, there should be no problem in making a deal.