Doing Business in Canada

By Terri Morrison
© Copyright 2004, All Rights Reserved

Even the smallest of US businesses competes in a shrinking global village, where understanding subtle cultural contexts can make or break sales and marketing efforts. This excerpt from the book Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries, offers insight into doing business in Canada.

Language

  • English and French are the official languages; French predominates only in Quebec.

Appointments

  • Punctuality is considered important. French-speaking areas of Canada may have a somewhat more casual attitude toward time, but individual business people vary. Mornings tend to be preferred for appointments. As a foreigner, you will be expected to be prompt, even if your Canadian counterpart is not. In general, it is acceptable to be fifteen minutes late for evening social occasions.

Negotiating

  • Although styles tend to be very similar to those in the United States, the pace may be slightly slower. Canadians associate the United States with self-promotion and "hype." Never inflate a product's benefits; it could generate claims of illegal promotion.
  • In Quebec, there are very stringent French-language requirements for all commercial endeavors. French is the only legal language in which to conduct business.

Business Entertaining

  • Business meals are popular in Canada, although the concept of the breakfast meeting is only now gaining acceptance. Most entertaining is done in public establishments, such as restaurants or nightclubs.
  • Traditionally, dinners were considered social occasions - if business was discussed at all, it was at the end of the meal. While this is changing, it is safest to allow your Canadian counterpart to bring up business first.

Protocol

  • The standard greeting is a smile, often accompanied by a nod, wave, and/or verbal greeting. In business situations, a handshake is used upon greetings or introductions.
  • Among Canadians of British descent, the handshake tends to be firm, and a weak handshake may be taken as a sign of weakness.

Gestures

  • The standard space between you and your conversation partner should be two feet. British Canadians are uncomfortable standing any closer to another person. French Canadians may stand slightly closer.
  • To beckon someone, wave all the fingers in a scooping motion with the palm facing up. The "V-for-victory" sign is done with the palm facing out. It can be taken as an insult when done with the palm inward. To wave goodbye, move your entire hand, facing outward.

Dress

  • In cities, conservative business attire is best. In rural areas and small towns, clothing is less formal and less fashionable.

Gifts

  • Business gifts should be modest. Ostentation tends to be frowned upon by Canadians.
  • When you visit a home, it is customary to take a gift. Flowers, candy, or alcohol are common gifts. When visiting a French-Canadian family, be aware that houses are divided into "public" rooms (which visitors may enter) and "private" rooms (which they may enter only when asked). The kitchen is often a private room; do not enter unless asked.