Canada & India A Study in International Business

Alexander Green
International Business BUS 453 Dr. C. Davies April 26, 2011

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Canada
Government
The Government of Canada is the system within which the federation of Canada is administered by a common authority. In Canada specifically, the term government refers to either the collective set of institutions or precisely the Queen-in-Council. The Queen-in-Council is, in each of the nations which comprise the English Commonwealth, the term of constitutional law that refers to the exercise of executive authority. An order made by the Queen-in-Council is known as an Order-in-Council, and such actions are subject to judicial review. In Commonwealth realms other than the United Kingdom, such as in Canada, the Queens powers and functions are delegated to the governor-general, and therefore the Queen-inCouncil is replaced by a Governor-General-in-Council. This construct was established at the Canadian Confederation, the process by which the federal Dominion of Canada was formed on July 1, 1867, through the Constitution Act (1867) as a constitutional monarchy. Within this form of government, a monarch acts as head of state within the parameters of a constitution. This essentially places the Canadian Crown at the core of the government, or the most basic building block, of the nations Westminster-style parliamentary democracy, a democratic parliamentary system of government modeled after the politics of the United Kingdom.
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The Crown therefore founds the basis for the executive, legislative, and judicial

branches of the Canadian government. Canada also employs a parliamentary system in which the monarch has strictly ceremonial duties and reserve powers and a prime minister, who is the head of government and exercises effective political power. Within the Constitution of Canada are further elements of governance including written statutes, court rulings, and unwritten conventions developed over the past several centuries.
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Elections in Canada are run in a democratic method, with citizens voting for members of Canadian Parliament, which has two chambers. The House of Commons has 308 members, elected for a maximum five-year term in single-seat constituencies. The Senate has 105 members appointed by the Governor General on the advice of the Prime Minister. Senators are given permanent terms (up to age 75) and thus often serve much longer than the Prime Minister who was primarily responsible for their appointment. On a national scale, elections are governed by the Canada Elections Act. Using a plurality voting system, Canadians vote for their local Member of Parliament (MP), who sits in the House of Commons. Most MPs are members of a federal political party as well, and generally the leader of the party with the most seats in the House of Commons becomes the Prime Minister. Canadians do not vote directly for the Prime Minister, nor do they vote for senators, who are appointed by the Prime Minister. The Prime Minister is the party leader who is elected in his/her local riding (or electoral district). While all Canadians do not vote for the prime minister, the prime minister must win election in a riding and all party members are involved in deciding who the party leader is (and thus the candidate for prime minister).

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Although several parties are currently represented in Parliament, Canada has two dominant political parties, the Conservatives and the Liberals, which have governed the country in some form since its formation in 1867.

Business & Culture

In Canadian business settings, relationships are typically started in a reserved manner, but become more friendly and informal as people become more familiar with one another. Politeness is important in Canada, and others are expected to adhere to the proper protocol for a given situation, such as shaking hands at arrival and departure and maintaining good eye contact. Business cards are often exchanged following an initial introduction, one side of which should be translated into French and offered French-side-up if doing business in Qubec. Women have little or no problem operating within the Canadian business environment as they are to be treated with both respect and equality. Also, Canada has encouraged a multi-ethnic approach to its immigration policies and cultural diversity is therefore both recognized and respected.
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The Canadian communication style reflects an amalgamation of both North American and British tendencies and may therefore be characterized as moderately indirect. Open disagreement is not an issue for most Canadians, but they certainly prefer to take a more tactful, diplomatic approach to conflict. Communication styles vary most between Anglophone and Francophone parts of the country, with Francophone Canadians generally both more exuberant than Anglophones and maintaining a greater tendency to interrupt as part of commonly accepted rhetorical culture. Spoken word is a more focal form of communication than non-verbal expression, except to add emphasis to a message or as an aspect of personal communication style. A key difference between American and Canadian communication styles is that Canadian communication patterns are much lower key. Reserve, understatement, diplomacy and tact are key attributes and contrast sharply with the more direct approach of many Americans. Canadians typically prefer to be at an arms length when speaking to someone and are reticent to discuss their personal lives with business associates. Lastly, Canadians will expect people to speak in a straightforward manner and to be able to back up their statements with examples, not appreciating exaggerated claims.
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In Canada, managers are not expected to manage in an authoritarian or paternalistic manner, but must be decisive. Generally, managers prefer to be friendly and informal, characterized as being a member of the group, rather than a figure placed on a pedestal above others. Though final decisions rest firmly with a manger, failure to consult widely can lead to a feeling of dissatisfaction amongst team members who may feel that the manager is acting in a dictatorial manner. As well, while the manager is not necessarily expected to be the most technically competent person in the team,
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the manager will be judged more on his or her ability to manage the resource which is the teaminterpersonal and manmanagement skills are considered of vital importance.
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Similar to business meetings in the United States, Canadian business meetings commence with a moderate amount of small talk and the exchanging of pleasantries. In Qubec, significant time may be spent on relationshipbuilding. Though meetings are well-organized and adhere to definite time schedules, they may sometimes be somewhat informal in manner even in situations where the subjects at hand are more serious. Anglophone meetings often appear more democratic as all participants will engage and contribute, whereas Francophone meetings may revolve more around the most senior attendees, due to a greater respect for hierarchy and position. Most business meetings involve reviewing proposals, planning, brain-storming, and the communication of decisions, with attendees generally representing a variety of levels of experience and everyone expected to express opinions. Again, the presentation of information should be supported with both facts and figures to substantiate claims as Canadians are essentially rational and logical, not as easily convinced by emotions, passion or feelings.
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Currency & Inflation

The Canadian dollar is Canadas currency, similar to the American dollar in the United States. The Bank of Canada is the main governing body of Canadian currency, and its principal role, as defines in the Bank of Canada Act, is to promote the economic and financial welfare of Canada. Its current mission statement is as follows: The Bank of Canada's responsibilities focus on the goals of low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt. As regards inflation, the more narrow and specific internal definition of its mandate is to keep the Canadian rate of inflation between 1% and 3%. Since the Bank of Canadas creation, however, the average annual inflation rate has been 3.13%. The most potent tool that the Bank of Canada possess to achieve its goal is its ability to set the interest rate for borrowed money. Since 1998, the Banks policy has been to intervene in the foreign exchange market only under exceptional circumstances, allowing for the flat Canadian dollars value to be determined by the market supply and demand for Canadian currency.
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Over the past 20 years, the Canadian dollar has fluctuated in value. It fell significantly against its American counterpart during the technological boom of the 1990s which was centered on the United States, traded at that time for as little as 61.79 U.S. in early January 2002, an all-time low. Since that floor, however, its value has risen against all major international currencies, due in part to high prices for commodities that Canada exports, especially oil. A number of central and commercial banks keep Canadian dollars as a reserve currency as it is considered to be a benchmark currency. In 2007, the Canadian dollars value continued to rise in value against the U.S. dollar due to the continued strength of the
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Canadian economy versus the United States currency weakness on world markets. The two currencies met at parity for the first time in over 30 years in late September 2007. Overall in 2007, the Canadian dollar soared in value by 23%, rebounding remarkably from several decades of high inflation before the 1990s. By observing how the Canadian dollar behaves against the U.S. dollar, foreign exchange economists can indirectly observe internal behaviours and patterns in the American economy that could not be seen by direct observation. The value of Canadian currency has been strongly tied to the American dollar because of their historical tendency to move in tandem as 84.2% of Canadas exports go into the United States and 56.7% of Canadian imports come from the United States. The rapid rise in the value of the dollar therefore increases the price of Canadian exports to the United States, but it also allows for Canadian industries to purchase foreign materials and businesses at a lower cost. Though the Canadian dollar is a solid currency relative to the global currency marketcreating a stable investing environment for foreign businessesdramatic fluctuations in recent years have tended to correlate with shifts in oil prices, reflecting the reality of the Canadian dollars status as a petrocurrency, owing to Canadas significant quantity of oil exports.
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Business & Commercial Law

Commercial law is the branch of private law concerned primarily with the supply of goods or services by merchants and other businesses for profit. Business and commercial law in Canada have many similarities with American law. Some aspects of Canadian business law which are particularly significant are those which define commercial legal jurisdiction (federal and provincial), sales law, and business acquisition transactions. In Canada, jurisdiction to regulate commercial transactions is divided between the federal and the provincial governments; further complication arises through the commercial law of Qubec. This type of commercial law was formerly derived from the Civil Code of France, as opposed to the commercial law of the English-speaking provinces which is largely based on English law. At both the provincial and federal levels, the relevant rules of many of the principal branches of commercial law have been reduced to statutory form. Throughout Canada (besides Qubec), provinces have a virtually identical Sale of Goods Act, while the Bills of Exchange Act, the Bank Act, the Carriage of Goods by Sea Act and the Bankruptcy and Insolvency Act codify all or a substantial part of the areas of commercial law under federal jurisdiction.
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Sales law in Canada functions primarily to determine the rights and duties of the seller and buyer where the contract itself does not contain a complete set of terms. Foundational to Canadian sales law is the precept that the seller must not only deliver goods of the right quantity and description and at the agreed time; he must also supply goods that
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are of merchantable quality and reasonably fit for their intended purpose. For this reason, oft-quoted maxim caveat emptor (let the buyer beware) has long ceased to represent the Canadian law, especially commercially. In the case that a seller does not manage to uphold his obligations, the seller may have to compensate the buyer for the losses suffered by them, which could be exceedingly substantial. However, well-drafted contracts almost invariably limit the sellers liability for defective goods, while primary obligations for a buyer under the typical contract of sale are to accept the goods and to pay for them as agreed.
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Another key component of Canadian commercial law is that which administers business acquisition transactions. In most instances, though the seller normally provides the buyer with various attestations concerning the property title to be transferred, this buyer must also consider a due diligence period in order to be protected from future litigations, as well as to secure his property title and the accuracy of the offered purchase price. For Canadian business acquisitions, a due diligence period, allowed to the buyer, is of major importance within any negotiation process leading to success. During this period of due diligence, similar to American business transactions of this nature, the buyer goes through a process of investigating the companys accounting documents, the current and applied for contracts, the business inventory, the employment contracts, the companys property titles, any commercial lease, the business premises, the tangible and intangible assets value, and the companys debts. According to Canadian commercial law, in each business acquisition transaction, it shall be granted to the purchaser a sufficient period of time to perform its due diligence, wherein the analysis performed shall not only focus on the assets to be transferred, but also on every key *element+ constituting the company to be acquired.
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Religious Environment
The Canadian religious environment encompasses a wide range of groups. Though the preamble to the Canadian Charter of Rights and Freedoms references God, and the monarch carries the title of Defender of the Faith, Canada has no official religion and support for both religious pluralism and freedom of religion is an important part of Canadas political culture. The 2001 Canadian census reported that 77% of Canadians claim adherence, followed by no religion at 16%, Islam at 2%, and Judaism, Hinduism, and Buddhism each representing approximately 1% of the population. Though Christianity was once central and integral to Canadian culture and everyday life, Canada is said to be entering a postChristian or secular state, where practice of the religion has moved to the margins of public life, and irreligion is on the rise.
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Though Americans and Canadians share many similarities, the religious landscape in each country is markedly different through some subtle variance. Both countries share a similar portion of Christians within the population (both

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over 70%) and the rate of decline for Christianity is approximately equal as well, both close to 0.9% annually. Roman Catholicism represents only about a quarter of the American population (24.5%), but nearly half of the Canadian population (43%); between Protestantism and Eastern Orthodoxy, 52% of Americans are represented, but only 31% of Canadians. Finally, the percentage of the public who consider religion important differs greatly between the nations: 59% in the United States and 30% in Canada. Canadas religious environment by no means represents a threat to the expansion of American business across its border, but its differences are important to consider in human resourcing issues, in doing business with various people groups, and for the sake of being respectful of religious precepts.
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India

Government
The Government of India, officially known as the Union Government or the Central Government, was established by the Constitution of India and is the governing body of a union comprised of 28 states and seven union territories. All together, these form the Republic of India. This governing body is located in New Delhi, the capital of India. The government features three branches: the executive, the legislative, and the judiciary. The executive branch is headed by the President and as the Head of State, the president exercises his or her power directly or through officers subordinate to him. The Legislative branch or the Parliament consists of the lower house, the Lok Sabha, and the upper house, the Rajya Sabha, as well as the president. The Judicial branch has the Supreme Court at its apex, 21 High Courts, and numerous civil, criminal and family courts at the district level. The basic civil and criminal laws governing the citizens of India are set down in major parliamentary legislation, such as the Civil Procedure Code, the Indian Penal Code, and the Criminal Procedure Code. The union and individual state governments consist of executive, legislative and judicial branches. The legal system as applicable to the federal and individual state governments is based on the English Common and Statutory Law. India accepts International Court of Justice jurisdiction with several reservations. By the 73rd and 74th amendments to the constitution, the Panchayat Raj system has been institutionalized for local governance. Elections in India take place every five years by universal adult suffrage, which consists of the extension of the right to vote to adult citizens (or subjects) as a whole. Although suffrage has two necessary components, the right to vote and opportunities to vote, the term universal suffrage is associated only with the right to vote and ignores the other aspect, the frequency that an incumbent government consults the electorate. In 2009, Indian elections covered an electorate larger
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than 714 million peopleover twice that of the next largest, the European Parliament electionsand declared expenditure has trebled since 1989 to almost $300 million, using more than 1 million electronic voting machines. In 2009, the elections covered an even larger electorate of 714 million. The size of the huge electorate mandates that elections be conducted in a number of phases (there were four phases in 2004 General Elections and five phases in 2009). It involves a number of step-by-step processes from announcement of election dates by the Election Commission of India, which brings into force the 'model code of conduct' for the political parties, to the announcement of results and submission of the list of successful candidates to the executive head of the state or the centre. The submission of results marks the end of the election process, thereby paving way for the formation of the new government. The Constitution originally provided for the right to property under Articles 19 and 31. Article 19 guaranteed to all citizens the right to acquire, hold and dispose of property. Article 31 provided that no person shall be deprived of his property save by authority of law. It also provided that compensation would be paid to a person whose property has been taken for public purposes. The right to property, also known as the right to protection of property, purports to be a human right and makes claim for the entitlement of private property; the right to property is not absolute and states have a wide degree of discretion to limit the rights.
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The provisions relating to the right to property were changed a number of times. The Forty-Forth Amendment of 1978 deleted the right to property from the list of fundamental rights. A new provision, Article 300-A, was added to the constitution which provided that "no person shall be deprived of his property save by authority of law". Thus if a legislature makes a law depriving a person of his property, there would be no obligation on the part of the State to pay anything as compensation. The aggrieved person shall have no right to move the court under Article 32. Thus, the right to property is no longer a fundamental right, though it is still a constitutional right. If the government appears to have acted unfairly, the action can be challenged in a court of law by citizens. The liberalization of the economy and the government's initiative to set up special economic zones has led to many protests by farmers and has led to calls for the reinstatement of the fundamental right to private property. The Supreme Court has sent a notice to the government questioning why the right should not be brought back but in 2010 the court rejected this. As in 2007 the Supreme Court unanimously said that the fundamental rights are a basic structure of the constitution and cannot be removed or diluted.
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Culture & Business

Regarded by some historians as the oldest living civilization of Earth, the Indian tradition dates back to 8000 BC and has a continuous recorded history since the time of the Vedas for over 5,500 years.
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Several elements of India's

diverse culture such as Indian religions, yoga and Indian cuisine have had a profound impact across the world.

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As a country, India covers a land area greater than that of Europe. Its inhabitants speak a bewildering array of languages (16 official languages as well as innumerable local dialects and patois). Not surprisingly, India is a country about which it is very difficult to make sweeping generalizations. India does, however, present a significant market opportunity for companies who wish to expand into international markets. With a population of over a billion people, encompassing millions whom are reasonably affluent and possess large amounts of disposable income, business organizations that with to profit from Indias rise must emphasize relationships within the business cycle. Additionally, the legacy of the caste system ensures that businesses are extremely hierarchically structured, meaning that managerial authority is very highly regarded.
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This applies to business structure too as people have an allotted position which they do not attempt to overturn. Employees question neither their position within the organization nor the validity of decisions taken: instead, greater forces (karma and dharma) prescribe all of these. Western concepts of egalitarianism where the boss is the primus inter pares are virtually incomprehensible in a society still dominated by the historical conventions of the caste system. When doing business in India, one must liaise as near to the top as possible as much time can be wasted dealing with middle management who may have very little impact on the final decision. From a manager, explicit directions are required as vague requests for action, with the expectation that staff will show the necessary level of initiative are likely to end in inaction. A level of micro-management is required in India which differs from the United States (and most of the Western Hemisphere), where employees prefer a greater sense of autonomy. In India, as in any foreign country, a comprehensive understanding of business customs is key to building successful business relationships. When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use the namaste. This is where the palms are brought together at chest level with a slight bow of the head.
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For Indians, names speak volumes about *ones+ background, referring to religion, caste, etc. Also, appropriate formal titles are used for those whom you know. Business cards should be exchanged at the first meeting, in a business situation, preferably with one side translated into Hindi, more as a sign of respect as opposed to linguistic necessity. Both giving and receiving are done with the right hand. Building relationships differs from the United States in that Indians only deal favourably with those they know and trust, even at the expense of lucrative deals. This takes time and effort to build and maintain, and a good working relationship is vital for any prospective partner. There are two factors to this: both professional and personal.
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Professionally, one must demonstrate strong business acumen; personally, one must relate to the potential partner and exhibit the positive traits of trustworthiness and honour. Meetings must be planned in advance, booked in writing and confirmed by phone. Near or on national holidays, meetings should be avoided, such as on Independence Day, Diwali or either of the two Eids. If planning an outdoor business

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event, the greatest heat can be avoided by scheduling between the months of October and March. Much like in America, punctuality is expected within reason. Flexibility, however, is paramount, and family responsibilities take precedence over business, meaning that last-minute cancellations do sometimes occur. As in other Southeast Asian nations, entering a room requires one to always approach and greet the most senior figure first. Conversations lead off meetings, even business meetings, and this pertains to the process of becoming familiar. Favourable conversation topics include the latest in business news, the fortunes of the Bombay Stock Exchange, or cricket (a popular national sport). Personal matters, alternately, are best left not discussed. Negotiations in India are often slow, especially if trust has not yet been established. Building a rapport is therefore vital as Indians do not make business decisions solely on statistics *or+ empirical data, instead using intuition, feeling and faith to guide them. High pressure tactics are to be avoided in India, as are confrontational or forceful methods, while diplomatic language must be employed in the case of the need to criticize or disagree. Similar to other cultures in Southeast Asia, Indian society emphasizes an aversion to saying no directly as it is considered rude due to the possibility of causing disappointment or offense. Lastly, any terms agreed upon are expected to be honoured, and the relationship building process must continue even in the wake of successful negotiations.
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Currency & Inflation

The Indian Rupee is the official currency of the Republic of India, and the issuance of this currency is controlled by the Reserve Bank of India. The Indian Rupee has fluctuated in value over the past 10 years, peaking in mid-2007 and reaching its lowest point in the third quarter of 2008. Before these extremes, the currency moved fairly consistently around about $0.023 USD. Currently, the Indian Rupee sits at $0.0227 USD ($0.0217 CAD). The stock market in India consists of 23 regional stock exchanges and two national exchanges, namely the National Stock Exchange (NSE) and the Over The Counter Exchange of India (OTC). The Bombay Stock Exchange (BSE) is the largest stock exchange in the nation.
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As of February 2011, the rate of inflation in India is 8.31%. Over the course of 2010, the Indian central bank lifted interest rates steadily, with headline inflation falling to 7.5% in November of 2010, down by just over a percentage point from October. However, higher interest rates may encourage more hot money flow into India. In September 2010, the countrys then-current-account deficit had widened to 4.3% of GDP. As Goldman Sachs has suggested, funding a growing deficit from a short-term capital *flows+ remains the biggest risk to Indias growth. Overall, the largest economic problems are structural as food producers, hampered by land restrictions, archaic retail networks and bad infrastructure, fail to meet extra demand from consumers. According to estimates in October 2010 by Subir Gokarn, deputy governor of the central bank, a 39% rise in income per person in the previous five years
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might have created an extra 220m regular consumers of milk, eggs, meat and fish. While India currently sits in a fairly stable position economically, it is still far from ideal, with inflation currently sitting multiple times greater than that of the United States.
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Business & Commercial Law

As in the United States, there are several key components to business and commercial law within the Indian legal system. The most significant of those pertain to the sale of goods, partnerships, the carriage of goods, and contracts. The sale of goods in India is governed by the Sale of Goods Act (1930) and applies to the whole of Indian except for the State of Jammu & Kashmir. This act is subject to the general principles of the law relating to contract, but it nonetheless features certain aspects, such as transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods, etc. which are uniquely administered through this act.
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Partnerships in Indian are overseen by the Indian Partnership Act (1932), which defines a partnership as the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting or all. Eligibility for partnership is contingent upon two persons entering into agreement who are competent to contract.
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According to the act, every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership.
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Partnerships in India may be entered into by one of several entities: an individual, a firm, a Hindu undivided family, a company, or a trustee. Any individual, who is competent to contract, can become a partner in the partnership firm. As a partnership firm is not a person, it cannot therefore enter into a partnership with any firm or individual. However, a partner of the partnership firm can enter into partnership with other persons and *+ can share the profits of *+ said firm with his other co-partners of the parent firm. Varying significantly from the U.S., where no such partnership exists, is the notion of a Hindu undivided family. A Karta (father) of the Hindu undivided family can become a partner in a partnership in his individual capacity, provided the member has contributed his self-acquired or personal skill and labour. A company is a juristic person and can therefore become a partner within a partnership firm, if it is authorised to do so by its objects. As for trustees, those who are classified as being of private religious trust, family trust [or] trustees of Hindu mutts or other religious endowments are also considered to be juristic persons and can therefore enter into partnership, unless their constitution or objects forbid.
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Contract law in India is managed under the Indian Contract Act (1872), which extends to the whole of India.

The

act understands a contract as an agreement enforceable by law, which entails that for the formation of a contract to take

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place, there must be both an agreement and an ability for this agreement to be enforceable by law.
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An agreement is

specifically defined as every promise and every set of promises forming the consideration for each other and a promise is an accepted proposal.
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Indian contract formation, similar to the United States, requires the process of proposal or offer

by one party and the acceptance thereof by the other, which typically features the process of negotiation, where the parties eventually make an offer, the offer is accepted, and the contract is thereby created.
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Indias contract law holds

that when one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of the other to such act or abstinence, he is said to make a proposal.
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Similarly, when the person to whom the

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proposal is made signifies his assent thereto, the proposal is said to be accepted.

Law regarding the carriage of goods in India is divided into three parts as Indian trade, both domestically and abroad, features components of land, sea, and air transportation. Carriage of goods by land is controlled by the Carriers Act (1865) and the Railways Act (1890). carriers).
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The first, however, only applies to common carriers (as distinguished from private

Carriage of goods by sea is administrated by the Carriage of Goods by Sea Act (1925) and the (Indian) Bills of
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Lading (1856).

According to these, a contract for the carriage of goods by sea is called a contract of affreightment and
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the consideration of carriage is called the freight.

This contract may take the form of either a Charter Party, where an

entire ship is hired, or a Bill of lading, where the goods are to be carried in a general ship which can be used for this purpose by any person.
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In both cases, Indian law dictates that the ship owner as the carrier undertakes the
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responsibility of carrying the goods of the consignor safely and securely to the destination.

The Carriage by Air Act

(1972) directs the carriage of goods by air, and the provisions of this act apply to domestic flights in the same manner as they are applicable to international flights carrying cargo.
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Air carriers operate under a limited liability structure imposed

by the Indian legal system, and a carrier cannot reduce his liability but may undertake a higher liability by a special agreement.
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Religious Environment
As the birth place of four of the worlds major religious traditions namely Hinduism, Jainism, Buddhism, and Sikhismreligion has been an important part of the Indian culture throughout its history.
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Therefore, both religious

diversity and religious tolerance are well-established in the country by law and custom, and a vast majority of Indians associate themselves with a religion. According to Indias 2001 census, Hinduism accounted for 80.5% of the population of India, with Islam (13.4%), Christianity (2.3%), and Sikhism (1.9%) representing the other major religions followed by the people of India.
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Aside from the existence and birth of native religions, this diversity of religious belief systems has been

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caused by assimilation and social integration of religions brought to the region by traders, travelers, immigrants, and even former invaders and conquerors.

Several aspects of Hindu philosophy have been popularized in the West through Indian diaspora, including yoga (meditation), medicine, divination, vegetarianism, karma, and reincarnation.
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As well, with a Muslim population that is the

third largest in the world, Indian religious culture is strongly influenced by Islam, and civil matters related to the community are dealt with by the Muslim Personal Law, and constitutional amendments in 1985 established its primacy in family matters.
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According to the Constitution of India, the nation is a secular republic that must uphold the right of

citizens to freely worship and propagate any religion or faith (with activities subject to reasonable restrictions for the sake of morality, law and order, etc. fundamental right. Generally, citizens of India remain tolerant of alternate religious traditions and maintain a secular outlook. Interreligious marriage is not widely practiced, but inter-community clashes have not found much support in the social mainstream. Common perception infers that the causes of religious conflicts are political rather than ideological in nature.
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Further, the constitution also declares the right to freedom of religion as a

Conclusion
Both of these nations share some distinct similarities and some unique differences with the United States. Canada, as a socialist democracy, features a more liberal political spectrum than that of Americas democracy. Also, while both countries operate with and under the precepts of their respective constitutions, the United States is a constitutional republic, while Canada is a constitutional monarchy, each system speaking primarily to the source of executive power. The biggest influences within Canadian business culture that creates divergence from the American model are the Francophone community, the reserved nature of Canadian society, and Canadas multiculturalism. In terms of currency and economic stability, Canada offers little currency riskthe risk of adverse fluctuations in exchange ratesand presents a great opportunity for American companies willing to expand internationally. Accordingly, Canadas business and commercial law has created an environment that is conducive to commercial development, especially with its solid property rights and comprehensive transactional law. Finally, the Canadian religious atmosphere, while incredibly diverse, is not an impediment to business so long as it is tolerated, understood, and respected. Canada therefore poses little or country riska potentially adverse effect on company operations and profitability caused by developments in the political, legal, and economic environment in a foreign countryto American firms.

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India, as a nation in the East, is significantly different from the United States, but it nonetheless features several similarities. Both countries are fundamentally republics and each operates under a national constitution. Through the government and Indias well-established commercial law, it poses little country risk from a political and legal perspective. However, the success of Indias economic environment is determined largely by the countrys massive population, with significant wealth largely contained in few segments of the population. Additionally, its inflation rate over the past several decades creates some potential currency or financial risk. Lastly, the cultural and religious environment creates a situation that differs greatly from the United States. The cultural influence of relationships and social hierarchy, as well as Hinduism and the caste system, means that American firms must invest significant time and effort into comprehending the Indian business landscape and its unique business customs. Without this, India poses a potential cross-cultural risk for American companies. In order for an American company to succeed in environments both alikesuch as Canadaand unlikesuch as India, the company must implement several principles through the use of the following practices. A company must take advantage of trade agreements, in order to think outside the border. It must protect its brand at all costs. It must always maintain the highest ethical standards, and remain secure in an insecure world. A firm must expect the unexpected, and in conclusion, must always retain that all business is personal.

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Works Cited:
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Grossman, Cathy Lynn. Christian churches in Canada fading out: USA next?. USA Today. Online. 2010. 22 April 2011. http://content.usatoday.com/communities/Religion/post/2010/02/christian-churches-in-canada-fading-outusa-next/1 Hibbard, Scott W. Religious Politics and Secular States: Egypt, India, and the United States. John Hopkins University Press, 2010. How Americans and Canadians differ religiously. ReligiousTolerance.org. 2005. Online. 22 April 2011. http://www.religioustolerance.org/canus_rel.htm Indian Inflation: Enough to make your eyes water. The Economist (Delhi). Online (from Print). 6 January 2011. April 2011. http://www.economist.com/node/17853294 Indian Rupee (INR) in US Dollar (USD). Google Finance. 8 April 2011. 8 April 2011. http://www.google.com/finance?q=CURRENCY:INR Mahapatra, Dhananjay. Should right to property return? The Times of India (2009). Online. Internet. 28 February 2009. 8 April 2011. http://articles.timesofindia.indiatimes.com/2009-02-28/india/28001697_1_public-purposepoor-farmers-property Major World Currencies: Exchange Rates & Values. Bloomberg. 2011. Online. 20 April 2011. http://www.bloomberg.com/markets/currencies/ Office of the Economic Adviser to the Government of India. Ministry of Commerce and Industry. Online. Internet. 7 April 2011. 8 April 2011. http://eaindustry.nic.in/ Pandey, Sunil & Thakur, A.P. 21 Century India: View and Vision. 2009. http://books.google.com/books?id=0Fcof1yobrkC&printsec=frontcover&dq=21st+Century+India+:+View+and+Vision&s ource=bl&ots=e6KYRVgJaM&sig=vlPnXNq-aj7Wy088OfsLUqS9GNY&hl=en&ei=e0eqTaXZKfd0QGAhaj5CA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q&f=false Queen Alexandrina Victoria. Constitution Act, 1867. Westminster: Queen's Printer, 29 March 1867. April 19 2011. http://www.solon.org/Constitutions/Canada/English/ca_1867.html Religions in CanadaCensus 2001. Statistics Canada. 2011.Online. 22 April 2011. http://www12.statcan.ca/english/census01/products/standard/themes/RetrieveProductTable.cfm Tharoor, Shashi. The recurring miracle of Indian democracy. The Straits Times (2009). Online. Internet. 16 April 2009. 8 April 2011. http://www.straitstimes.com/vgn-exttemplating/v/index.jsp?vgnextoid=eece35b378aa0210VgnVCM100000430a0a0aRCRD&vgnextchannel=016275892 0e39010VgnVCM1000000a35010aRCRD The Constitution of India. Government of India, Ministry of Law and Justice. 1 December 2007. 8 April 2011. http://lawmin.nic.in/coi/coiason29july08.pdf The World Factbook - Canada. Central Intelligence Agency. 2011. Online. 20 April 2011. https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html#Econ Venkatesan, J. Court rejects plea to make property a fundamental right. The Hindu (Chennai, India). 19 October 2010. 8 April 2011. http://www.thehindu.com/news/national/article836599.ece. Visnu, Swami. Scientific Verification of Vedic Knowledge. ArchaeologyOnline.net. 2011. 16 April 2011. http://www.archaeologyonline.net/artifacts/scientific-verif-vedas.html
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Endnotes:
1

The Queen on the Application of Louis Olivier Bancoult v. The Secretary of State for Foreign and Commonwealth Affairs, CO/4093/2004 2 Department of Canadian Heritage: Canadian Heritage Portfolio. 3 Andrew Coyne: Defending the royals. 4 Queen Alexandrina Victoria: Constitution Act (1867) [III.15]. 5 Stephen Brooks, Canadian Democracy: An Introduction (p. 126). 6 Kwintessential: Canada Language, Culture, Customs and Etiquette. 7 Ibid. 8 Ibid. 9 World Business Culture: Top Tips on Canadian Business Culture. 10 Kwintessential: Canada Language, Culture, Customs and Etiquette. 11 Ibid. 12 Ibid. 13 World Business Culture: Business Communication Styles. 14 Kwintessential: Canada Language, Culture, Customs and Etiquette. 15 World Business Culture: Management Style in Canada. 16 Ibid. 17 Ibid. 18 Ibid. 19 Kwintessential: Canada Language, Culture, Customs and Etiquette. 20 Ibid. 21 Ibid. 22 Ibid. 23 Bank of Canada: Inflation Calculator. 24 Bank of Canada. 25 Oanda: Historical exchange rate of CAD to USD from December 21, 2001 to February 21, 2002. 26 Bloomberg: Benchmark currencies of the world. 27 Central Intelligence Agency: The World Factbook Canada. 28 Canadian Encyclopedia: Commercial Law. 29 Ibid. 30 Ibid. 31 Ibid. 32 Ibid. 33 Ibid. 34 Ibid. 35 Ibid. 36 Ibid. 37 Ibid. 38 HG Legal Directories: Commercial Law in Canada Business Acquisition & Due Diligence. 39 Ibid. 40 Ibid. 41 Ibid. 42 Department of Justice Canada: Canadian Charter of Rights and Freedoms. 43 Statistics Canada: Religions in CanadaCensus 2001. 44 USA Today: Christian churches in Canada fading out: USA next?. 45 Globe And Mail: Anglican Church facing the threat of extinction. 46 Religious Tolerance: How Americans and Canadians differ religiously. 47 Ibid. 48 Ibid. 49 Ministry of Law and Justice, Govt of India: Constitution of India, updated up to 94th Amendment Act (p. 26). 50 Shashi Tharoor: The recurring miracle of Indian democracy.

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51 52

Ministry of Law and Justice, Govt of India: Constitution of India. Ibid. 53 Ibid. 54 Ibid. 55 Ibid. 56 44th Amendment Act, 1978. 57 Tayal, B.B. & Jacob, A. (2005): Indian History, World Developments and Civics, (p. A-33). 58 Dhananjay Mahapatra: Should right to property return? 59 J. Venkatesan: Court rejects plea to make property a fundamental right. 60 Robert Arnett: India Unveiled. 61 Swami Visnu: Scientific Verification of Vedic Knowledge. 62 World Business Culture: Background to Business in India. 63 Ibid. 64 Ibid. 65 World Business Culture: Indian Business Structure. 66 Ibid. 67 World Business Culture: Indian Management Style. 68 World Business Culture: Indian Business Structure. 69 World Business Culture: Indian Management Style. 70 Kwintessential: Doing Business In India. 71 Ibid. 72 Ibid. 73 Ibid. 74 Ibid. 75 Ibid. 76 Ibid. 77 Ibid. 78 Ibid. 79 Ibid. 80 Google Finance, 8 April 2011. 81 Tax India: Shares And Stock Exchange in India. 82 Ibid. 83 Ministry of Commerce and Industry: Office of the Economic Adviser to the Government of India. 84 The Economist: Indian Inflation, Enough to make your eyes water. 85 Ibid. 86 Ibid. 87 Tax India: Business / Commercial Law. 88 Tax India: Sale of Goods Act. 89 Ibid. 90 Tax India: Indian Partnership Act. 91 Ibid. 92 Ibid. 93 Ibid. 94 Ibid. 95 Ibid. 96 Ibid. 97 Ibid. 98 Ibid. 99 Ibid. 100 Tax India: Indian Contract Act. 101 Ibid. 102 Ibid. 103 Ibid. 104 Ibid.

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105 106

Tax India: Indian Contract Act. Tax India: Carriage of Goods by Land. 107 Ibid. 108 Tax India: Carriage of Goods by Sea. 109 Ibid. 110 Tax India: Carriage of Goods by Sea. 111 Ibid. 112 Tax India: Carriage of Goods by Air. 113 Ibid. 114 Phani Deka: The great Indian corridor in the east (p. 135). 115 Census of India, 2001. 116 Steven Rosen: Essential Hinduism (p. 225). 117 Scott W. Hibbard: Religious Politics and Secular States: Egypt, India, and the United States (p. 156). 118 The Constitution of India, Articles 25-28. 119 The Constitution (Forty-Second Amendment) Act, 1976. 120 st Sunil Pandey & A.P. Thakur: 21 Century India : View and Vision.