TABLE OF CONTENTS

Introduction and Overview…………………………………………………………….Page 1

The Country…………………………………………………………………………….Page 2

Government and Politics………………………………………………………………..Page 3

Economic Structure……………………………………………………………………..Page 4-8

National Culture………………………………………………………………………...Page 9-11

Management…………………………………………………………………………….Page 12-14

Comparison U.S. and Canada………………………………………….……………….Page 15

Interview……………………………………………………………………………….Page 16

Conclusion………………………………………………………………………………Page 17

References………………………………………………………………………………Page 18-22

1
INTRODUCTION AND OVERVIEW
Introduction
The purpose of this paper is for us, as a team, to learn more about the culture in Canada relating to a business atmosphere as well as a casual atmosphere. It is important to be knowledgeable of cultures in other countries, due to possible international business opportunities that may arise in the future.

Overview
In this paper, we discuss a little bit about the history and demographics of the country as a whole. We also talk about the government, economy, and culture of Canada on a more detailed level. Later, in the paper management in Canada as well as a comparison of the U.S. and Canada is covered.

2
CANADA- THE COUNTRY

History
The first group to come to Canada was the Aboriginal people who were later joined by the French and British to form the culture of Canada (Wikipedia, 2010). Canada has also been influenced by the United States relating to its social culture (Wikipedia, 2010).

Canada comes from the word “Kanata”, which translates to the word “village” (Wikipedia, 2010). The capital of Canada is Ottawa (About.com, 2010). Canada is comprised of three different territories and ten different provinces (About.com, 2010). The currency used in Canada is the Canadian dollar (Bank of Canada, 2010). Canada is also one of the world’s most highly developed countries (Wikipedia, 2010).

Demographics

Approximately 33 million people currently live in Canada (DataMonitor, 2010). Majority of the people residing in Canada live in the Ontario and Quebec areas (Wikipedia, 2010). In Canada, the Life Expectancy for men is about 79 years old and 84 years old for women and the major religion is Roman Catholic which is followed by 43% of Canadians (DataMonitor, 2010). The major ethnic groups include the British Isles that makes up 28% of the population, French which makes up 23%, European that includes 15% of people, and other descents that make up 34% of the population (DataMonitor, 2010). Canada's two official languages are English and French, approximately 67.5% speak English while 13.3% speak French (Wikipedia, 2010).

3
GOVERNMENT AND POLITICS
Political Parties
There are several different Political Parties in Canada that include Conservatives, Liberals, Democrats, and Communists (WhiteBark Innovations, 2010). The Conservative party is also known as “Tory” and the Liberal Party is known as “Grits” (DataMonitor, 2010). The Conservative Party believes in lower taxes and spends a lot of time dealing with the military, while the Liberal Party is Canada’s oldest party (DataMonitor, 2010).
Current Government
The current government is lead by Prime Minister Stephen Harper, who is affiliated with the Conservative party (DataMonitor, 2010). Canada’s government is currently run according to Parliamentary Democracy guidelines (Dowling, 2001). This country’s effectiveness has been ranked high in terms of Government, however many government policies are not supported in other countries (DataMonitor, 2010).
Political Risk
The Conservative party has been in power since 2006, and the latest survey shows the Conservatives only lead the Liberals by a few individuals, which means they would more than likely lose seats in a vote now (Thomson Reuters, 2010). “The highest risk in Canada is the slow economy in the United States, which purchases 75% of Canada’s exports” (Thomson Reuters, 2010).
Corruption Index/ Transparency Index
In 2009, Canada had a ranking of 8 regarding corruption out of approximately 180 countries (CPI, 2009). It is often easier to do business in countries where corruption is low and bribery is uncommon.

4
ECONOMIC STRUCTURE
Industry and Economic Development
The there is a strong link between appreciations of the Canadian dollar with the state of the United States economy. The recent downturn has slowed the growth of the Canadian export sector. As a result, Canada’s GDP is only currently growing at a rate of 0.5% (Trading Economics, 2010).
Public and Private Enterprises
Some of the private enterprises are power, telecom, banking, and airline industries (DataMonitor, 2010). Provinces have jurisdiction over credit unions, securities dealers, and mutual funds while Canadian government has sole authority over the banks and also share responsibilities of insurance, trust, and loan companies (DataMonitor, 2010). Provincial governments regulate specific elements in private businesses that include accounting procedures (Private Enterprise, 2010).
Taxes
Federal and provincial governments have access to tax revenue from people and corporate income taxes, sales taxes, and payroll taxes (DataMonitor, 2010). Taxes are not collected on most charity functions and select educational activities (Canada Revenue Agency, 2008).
Canada has a business-friendly environment and low taxes compared to most countries. As of 2005, the taxes on businesses in Canada were 5.4% lower than taxes on businesses in the U.S. (Department of Finance Canada, 2008).
To stimulate economic growth, Canadian government plans to reduce the corporate tax rate to 15% by 2012 (DataMonitor, 2010). Some provinces have already initiated large tax cuts to boost investment competitiveness.

5
GDP

(DataMonitor, 2010)
Canada, known for having one of the best performing economies among developed nations from 2002-2007, and had a real GDP of $850 billion in 2009 (DataMonitor, 2010). They have seen a consistent rise in GDP for over a decade. Due to the economic downturn the global economy experienced in 2009, Canada had a decline. Forecasters expect a recovery in 2010 and future years (DataMonitor, 2010).
Social Welfare Programs
Canada’s extensive list of social welfare programs exist at the federal and provincial levels. The Department of Human Resources and Social Development provides and oversees the welfare programs with resources that include employment insurance, childcare, and pension policies (Service Canada, 2010).
The employment policy provides temporary income to those who are unemployed and the childcare benefit provides assistance for children so parents are able to work (Service Canada, 2010). The Canada Pension Plan is a social insurance program contributed to during years in the workforce and the Old Age Security program assists low-income seniors (DataMonitor, 2010).

6
Employment and Unemployment
So far in 2010, the unemployment rate in Canada has decreased to approximately 7.9%, wages paid to employees in Canada actually increased this year (Statistics Canada, 2010).
Almost 70% of the population is ages 15-64 (DataMonitor, 2010). This provides a large and powerful workforce, but it also results in overcrowding of certain job markets and more competition for upper level jobs.
Unions
Over 4 million Canadians are members of a union. The Canadian Labour Congress is the governing body for most Canadian and international labor unions (Canadian Labour Congress , 2009). (Canadian Labour Congress , 2009)
Trade agreements
Canada and the United States became close investment and trading partners after the creation of the North American Free Trade Agreement in 1994 (USDA, 2008). They are also a member of

7 the World Trade Organization and have Free Trade Agreements with Panama, Peru, Colombia, Costa Rica, Chile, and Israel (Foreign Affairs and International Trade Canada, 2010).
Foreign Trade
Canada’s major exports come from manufacturing. The manufacturing division consists of metals, lumber, and automobiles. Over 1,000,000 people living in Canada work for businesses in the manufacturing industry (CME, 2010).
Nearly 75% of all trade and capital moving in and out of Canada are from the United States and in 2008, exports were valued at $521 billion (DataMonitor, 2010). In 2008, 28% of exports were energy products, industrial goods at 25%, and machinery and equipment at 21% (DataMonitor, 2010).
Foreign Investments
Canada has seen significant growth in foreign direct investments over the last several years. The Department of Foreign Affairs is active in assisting Canada with investment decisions (Witiger, 2010).
In 2008, foreign direct investments reached $46 billion, which was down from recent years due to global consolidation in the energy and metals sectors (DataMonitor, 2010). In 2009, foreign investments in Canada were $434 billion, while their investments in other countries were $552 billion (DataMonitor, 2010).
Porter’s Diamond
Factor Conditions: Canada has a strong base of skilled workers and technological base but lacks in R&D which will result in fewer upgrades to current processes and new practices.
Related and Supporting Industries: Multiple manufacturers of the same products help competition between suppliers and consumers receive the cost benefits.

8
Demand Conditions: The products and industries in Canada support local and international demand creating both a national and competitive advantage.
Strategy, Structure, and Rivalry:During the current slow economy Canada should make smaller more cautious investment decisions locally as well as internationally in order to avoid losing profits on its investments. The current business strategy for businesses in Canada as well as many other countries is to start hiring new employees and help grow the economy.

9
NATIONAL CULTURE
Religion
The dominant religion in Canada is Roman Catholic (Wikipedia, 2010). Protestants rank second with 23% of the population practicing the religion and non-believers are reported at 16% (DataMonitor, 2010).
Language
The primary languages of Canada are English and French (Crave Canada, 2010).
Literacy
The current literacy rate in Canada is 99% (QA02.com, 2009). The percentage of literate people is equal between males and females, and approximately 84% of adults have some college education (DataMonitor, 2010).
Education
There is no school board system regulated by the federal government. The responsibility of delivery and assessment of elementary and secondary schools lies within each province (DataMonitor, 2010). Post-secondary institutions have varying degrees of provincial and governmental control, while the Provincial governments and local taxes provide funding to the schools (DataMonitor, 2010). In Canada a little over 12% of the country’s budget is spent funding educational programs (Visual Economics, 2010).
As of 2008, over 5,000,000 students attended public schools in Canada (Statistics Canada, 2010). 71% of students in Canada graduate from public schools (Statistics Canada, 2010).
The number of people in Canada that transition from high school to college has decreased to only 29% (Council of Ministers of Education, 2009). Canada has over 90 different colleges to meet the varying educational needs of students (Abacus, 2010).

10
Standards of Living
Canada has a fairly high standard of living when compared to other countries. Only the U.S. and one other country have higher standards of living than Canada does (Government of Canada, 2003). In 2010, the average hourly earnings is reported at $22.71, up over $1 since 2008 (Living in Canada, 2010). Hourly minimum wage differs between each province with British Colombia with the lowest at $8 per hour and Ontario topping the chart at $10.25 per hour. The rent for a two-bedroom condo is $1,154 a month and the average home sale price in Vancouver is $653,499 (Vancouver Housing, 2010). Taxes and other pay deductions lower net income up to 35% of gross income (Income and Taxes, 2010).

Ethic Divisions
Canada has over five million immigrants and minorities as of 2009, South Asians make up the largest minority unit in Canada (Fenlon, 2009). In 2001, over two million immigrants were residing in Ontario (Statistics Canada, 2003). Quebec tends to have more of the European population while in Ontario you find more people from a Chinese or Indian descent (Fenlon, 2009).
Social Classes
A strength in the social system in Canada is the social security programs set up by the government entities (DataMonitor, 2010). The current issue society in Canada is facing is supporting the aging part of the population (DataMonitor, 2010).
Approximately only 10% of Canadians are considered to belong to upper class while about 50% of Canadians are considered middle class (Macionis, 2010). Many members of the upper class inherit their wealth. People considered to be middle class in Canada make up to $70,000 annually (Akin, 2005).
Status of Women
Canada has a group called the “Status of Women Canada” (SWC) that encourages the involvement of women in the economic and political issues (SWC, 2010). SWC also works to decrease violence towards women (SWC, 2010).
Unique Cultural Features
Immigration is a growing concern in Canada. Canada does not have very structured regulations regarding immigration (DataMonitor, 2010). Canada has policies that support immigration rather than discourage immigration (Campbell and Cohen, 2009).
11
Hofstede’s Research
The research conducted in Canada by Hofstede found that Canada ranked highest in the category of Individualism (Hofstede, 2009). The United Kingdom as well as the United States also has high rankings in the category of individualism (Taylor K. R., 2008).
Canada ranked low in the category of Long Term Orientation which refers to the importance of commitment within the community (Hofstede, 2009).
Canada also ranked lower in the Power Distance category (Hofstede, 2009). Countries with low Power Distance typically do not have vastly different levels of authority across the country (Taylor K. R., 2008).

12
MANAGEMENT
Organizational Characteristics
Many Canada based companies have gone from a very tall organizational structure to a flat organizational structure (World Business Culture, 2010).
The more popular flat organizational structures in Canada have only a couple of managers between departments and tend to encourage employee involvement in the organization (Wikipedia, 2010). This type of structure also allows for faster feedback concerning employee performance due to the small number of managers (Wikipedia, 2010).
Motivation and Incentive Programs
One incentive program widely implemented in Canada is Profit Sharing (Ward, 2010). By giving employees a monetary part of the company, it will encourage employees to increase production and profitability. By implementing Profit Sharing plans employees have more power over their retirement (Merrick, 2007).
Another way to increase employee motivation is for the employer to establish rewards for employees based on the levels of goals accomplished (Sibson Consulting, 2010). According to Sibson, there are approximately five categories of rewards that include employee relationship with the organization, employee compensation, career opportunities, work tasks, and employee benefits (Sibson Consulting, 2010).
Leadership Styles
In Canada, managers are expected to have the ability to gather information and make prompt company decisions (World Business Culture, 2010). Leadership styles in Canada can be described as sociable as well as relaxed (World Business Culture, 2010).
Decision Making
Due to the flat organization structure that is popular in Canada the decision making tends to be less centralized (Wikipedia, 2010). When managers in Canada are faced with making important

13 decisions they like to get relevant information from as many employees and outside sources as possible in order to make an informed decision (World Business Culture, 2010).
Communication
Communication methods in Canada differ from the communication styles we are used to in the United States. It is expected in a business atmosphere in Canada to greet people with a handshake, when a man is shaking a women’s hand he must wait for her to offer the handshake first (Taylor K. R., 2008). Many people in Canada also like to keep space between them and the person they are conversing with (Kwintessential, 2010). When engaged in conversation it is important to appear sociable and hand gestures tend to be frowned upon (Taylor K. R., 2008). When negotiating a business deal in Canada not a lot of time is spent getting to know the potential business partners, more time is spent talking business (Kwintessential, 2010).
Ethics Issues
Business ethics in Canada are similar to ethical guidelines in the U.S. Each industry in Canada is affiliated with different organizations that monitor ethical behavior, for example the marketing industry is affiliated with the “Canadian Marketing Association” (Marketing Association, 2010).
Managerial Profile
A typical international manager in Canada is required to have a degree from a university as well as at least one year of experience, strong communication skills, and be mindful of deadlines (Tyler, 2008). If you are a candidate for this type of position and have several years of experience you can expect to make a minimum of $70,000 (Best Jobs Canada, 2010).
Women in Management
An increasing number of women have been entering the business world in Canada and have increased their educations in an effort to move up within the organizations (Burke, 1985). As of 2008, only 34.1% of women have obtained upper management positions and 39% have held a lower management position within an organization (Catalyst Inc., 2010). Women conducting business in Canada are not likely to have any problems forming business relationships (World Business Culture, 2010).
14
Unique Features of Management System
One unique feature of the management styles in organizations in Canada is the way business meetings are conducted. During meetings in Canada hand gestures are avoided as well as conflict (Newman E. , 2010). In business meetings in Canada it is also common for everyone to trade business cards (Kwintessential, 2010). This approach to business meetings differs from many business meetings held in the United States where conflict is encouraged to come to a more collaborative solution.
Relationship Between Hofstede’s Dimensions and Management System
The Geert Hofstede analysis of the culture of organizations in Canada agrees with the country’s management characteristics. According to the Hofstede analysis Canada ranked low in the category of Power Distance (Hofstede, 2009). This is also true for managers within the organizations because many managers include and communicate with employees and managers also like to blend in with other members of the organization (World Business Culture, 2010). Canada also ranked low in the Long Term Orientation category, which held true among the organizations in Canada that expect commitment among individuals within and outside the organization (Hofstede, 2009). Individualism was not as apparent within the organizations in Canada because most decisions were spread among several individuals and one manager provided a collaborative answer (World Business Culture, 2010).

15
COMPARISON OF U.S. AND CANADA
Canadian culture compared to the culture of United States has few distinct differences, but just like states in the U.S. have differences, Canada can almost be considered just another state of the U.S. in terms of regional differences (Wikipedia, 2010). Due to the fact that 90% of Canadians live within 75 kilometers of the U.S. border, many cultural activities that occur in Canada occur also in the northern U.S. and vice-versa (Wikipedia, 2010).
Canada’s culture just like the culture of the U.S. has been influenced by history, geography, and political policies. It has fought hard to distinguish itself from American culture, but with no avail. If you were to put a British Colombian in the middle of Arkansas, one could definitely tell that he was not from Arkansas due to the accent, dress, cuisine, and personality; however put this person in Washington State, and very few could tell he was not from Washington. This highlights the point that Canadian culture is not a national difference, but more of a regional difference which upsets many Canadian nationalist (CanadianContent.net, 2009).
Canadians will argue that Canada is different by the way they handle medical care, gun-control, criminal punishment, and immigration control (Wheelwright, 2005). Medical care is the most distinct difference of Canadian culture. The U.S. spends much more money on healthcare then Canada. In 2004, Canadians spent an average of $1893.00 per person, where as Americans spent $2750.00 (Wikipedia, 2010). Canadians view the U.S. healthcare system as a warning to citizens of what might happen if the private sector becomes too involved, and the U.S. is split over the Canadian system viewed by some to be followed and viewed by others to be avoided (Wikipedia, 2010).
This excerpt from the article breaks down and summarizes the differences between the U.S. and Canadian culture:
“So, after all that is said, what we come down to is the smallest of small differences, which most visitors from other countries would laugh at. Nationalists make trivial differences bigger than they are. Here are some examples: "We pronounce Z, 'zed' not 'zee'!", "Hockey is our national sport!" (which is obviously popular in the US as well since 80% of NHL teams are located there); "We spell color with a U!" (unlike the original Latin spelling, care of the British of course); and "Canadian beer is better than American beer!". Is this what defines a country: beer, pronunciation, and spelling differences?” (Wheelwright, 2005). (http://www.unitednorthamerica.org/antination.htm)
16
INTERVIEW
GARY- ADD INFORMATION

17
CONCLUSION
Canada as well as most countries depends on global connections and agreements with other countries to remain a competitive nation. Canada also has relatively low tax rates compared to other countries to support the country’s schools and other establishments (DataMonitor, 2010).
Businesses in Canada are constantly evolving and adapting to economic and political changes. Today, more and more women are achieving management positions within organizations (Catalyst Inc., 2010). The culture in organizations in Canada is considered informal and moderately collaborative when it comes to business decisions (World Business Culture, 2010).
Overall, the United States and Canada are similar based on many cultural and social aspects. A couple similarities in conducting business in Canada and the U.S. are handshakes and prompt arrival to business functions (Newman E. , 2010).

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