Comparison of How Canada and India Differ or Are Similar in Business Environment.

Comparison of How Canada and India Differ or Are Similar in Business Environment.

Introductions

In recent years, globalization has influenced how the country carries out business activities affecting the business environment in different countries. The cooperation between business in Canada and India has increased dramatically, promoting an effective business environment. It has promoted many business similarities, such as business structure and culture between the countries. However, there still many differences between Indian businesspeople seeking to expand their business compared to those of Canada. This paper focuses on differences and similarities in the business environment between Canada and India.

Economic comparison

The economic factors in India are more favorable to small enterprise businesses compared to Canada due to reducing corporate taxation from twenty-five percent to fifteen percent for new manufacturing companies, and existing companies’ tax was reduced to twenty-two percent from thirty percent. India experiences frequent changes in corporate tax to improve its economic power in the world. Taxes reduction in the country provides a favorable working environment for business due to minimized interest rates on finance and availability of investment capital.

Changes in exchange rates affect the business in India, such most of the companies depend on the export and import business. Indian economy depends on the economic factor of other trading partners such as Switzerland, the United States, UEA, and China in the business of export and import. Currently, India is a major import of electronic goods, crude oil, petroleum, and precious stone, among others, while it exports pharmaceutical products, machinery equipment, jewelry, and readymade garment.

Canada has the most economic stability during business compared to India, as it currently occupies the tenth position in the world. Economic stability in Canada as a result of many free trade agreements such as the European Union and comprehensive economic and trade agreement that improve its stability. The economic stability has provided stability to its exchanges through import and export compared to India. The import and export business in Canada is not affected much by changes in the exchange rate.

Legal environment

Both Canada and India are democratic countries with political stability that promote conducive environments for local and international companies. The political stability has earned both countries a good global image, mostly for business and tourism. Despite political stability, India faces a threat to the local and global markets due to its dispute with Pakistan over Kashmir that leads to political instability.

In both countries, there laws and policies that seek to protect domestic companies and their people from exploitation by foreign business. In Canada, there are laws and policies concerning employee working environment, hours, dismissal, discrimination, and minimum wages that should be fulfilled by an employer. In India, the employee is protected under the employee state insurance and industrial disputes Acts.

Technological environment

India is one of the countries experiencing rapid technological changes in the world. Its technological advancement has recently attracted the largest organization such as Apple, Facebook, and Microsoft, to outsource work in information technology. Increased advancements in technology, infrastructures, and skilled information technology have provided many opportunities in technological projects and improved business practices.

Technological is one of the fastest-growing sectors in Canada with major integration in other areas such as education, leisure, health, career, and government. In Canada, the technology industry has provided many employment opportunities with the highest paying jobs compared to other sectors. Improved technology in Canada has gained an excellent reputation worldwide, with most international countries choosing Canada to advance their career, education, and grow business.

Competitive environment

In Canada, competition is the key to economic stability and prosperity that focus on how productive and innovative private and public sector compete. Canada gains competitive advantages while dealing with foreign counties due to its diverse economy, political stability, location in the world, high-quality education system, natural resource, and institution. Its competition is weakened by high taxation, population density, regulation burden, and the cost of capital.

In Indian, competition resides in its internal and external companies that have increased its economic stability. It can stand strong in the global economy through extensive import and export business, efficient public sector services, technological innovation, and the agricultural sector. Effective competition is weekend by the government ownership and control of the private sector, high level of bureaucratic, and India tariffs.

Social environment

Canada is one of the most diverse countries in term of ethnicity and culture that have led it to be referred to as the country of newcomers. It increases the problem of immigration has it seek flexible migration to increase skilled and unskilled workers. It has a low population that poses a great danger to the labor market. On the other hand, Indian has a larges population that provides cheap labor in the country. The availability of cheap labor has attracted a large international organization that seeks to exploit labor resources.

Global Business Environment

Globalizations of business have been the current trend companies in both Canada and India. It has earned Canada tenth position in the world in terms of globalization, with significant businesses being the import of agricultural products, crude oil, consumer good, and chemicals. Its large trading partner includes the European Union and the United States. Indian global has emerged to be strongest in recent years that slow down Canada’s global economic growth. It offers favorable policies for foreign countries have increased their investment in India of recently due to advance technology and infrastructure, fair regulation and availability of labor

Conclusion

The environmental analysis provides a clear view of differences and similarities between businesses in Canada and India. Both countries offer strict legal regulation that seeks to safeguard its people from exploitation by foreign companies, improved technology that attracts large organizations, economic and political stability, and faster global economic growth. Canada experience strong political and economic stability compared to India that has attracted most of the investors in the country. It also serves as the basis for competition as many companies seek to venture into international business. India has a high population compared to Canada that provides readily available and affordable labor, attracting many global companies. At the same time, Canada focuses on increasing immigrants for both skilled and unskilled labor. India is experiencing faster technological advancements that attracted major companies to invest in the country. In contrast, Canada attracts many people who seek to advance their career, education, business due to advanced technology.