Servicing the world with confidence: What you need to know
4 ways services are traded
1. Cross-border: When a service such as an online training course crosses our border into another country without the movement of people
2. Consumption abroad: When international consumers come to Canada to use a service, like foreign tourists skiing in Banff.
3. Commercial presence: When a Canadian company opens a branch in another country to provide services such as a logistics company with warehouses around the globe.
4. Movement of people: When individuals travel from Canada to provide a service in another country. For example, an architect overseeing a project overseas from the international location.
Profile of service exporters
How free trade agreements benefit service exporters
The importance of cultural intelligence in service exporting
- Cultural intelligence is the ability to function effectively in different cultural contexts.
- If a trade deal is aligned on price and service, but fails to come to fruition, the failure is due to a cultural mis-step 80% of the time (Harvard Business School).
- There is no single way of doing business: one size does not fit the world, so business models must be adapted to each culture.
- Importance of relationships in service exporting: the need for nuanced communications, superior negotiating skills, diplomacy and follow up.
- Invest the time to understand the culture--etiquette, meeting protocols, dress and appearance, rituals of business card exchange--where you’re doing business.
