Diversity on Cross-Functional Operations Against China & Canada

Published by James Taylor

Cross-functional diversity is an essential aspect of ensuring different knowledge and skills are passed from one expert to another. In the international market, it is critical to consider the role played by every country based on the types of products offered by those countries. There is a difference between products offered by developing countries and those provided by developed nations. Recently, the Chinese president and Canadian Prime Minister met and agreed on the various possible ways of ensuring and promoting trade between the two countries[1]. Each of the two nations have a strong economy supported by technological advancements. Consequently, sharing resources from these two nations may be of great value to each of the countries. Considering the technical and cultural diversity existing between these two nations, it is right to say that trade partnership between China and Canada would result in significant economic advantages to both countries. Arguably, diversity of cross-functional operations may be one of the surest business strategies of promoting economic sustainability among international trade partners.

ALDO Group Limited is a leading Canadian store, which is a worldwide shoe retailer with a huge capital base. The company found the importance of applying workplace diversity as a means of improving the quality of services offered. The company has employees who are culturally diverse, thereby, availing different skills and talents from a different part of the world. According to most company managers, diversity is an important aspect that should be considered in a workplace to enhance creativity, teamwork, and commitment aimed at meeting the company’s ultimate goals. All these are done as strategies of ensuring a large market, both nationally and internationally. ALDO is also an international company that conducts market research in various countries to secure customers. The trading contract between China and Canada would, therefore, be of great importance to such Canadian companies since; the sales volume would increase thereby increasing the overall revenue for the country[2]. China would also enjoy the benefits of the dual trading partnership as it will be able to receive products produced from Canada.

According to statistics, China is the second largest of Canada’s trading partner, while Canada is in the thirteenth rank of China’s trading partner. Trading activities between these two countries are therefore beneficial and promote economic sustainability to each of the nations. Clean technology and environmental goods and services are among the fastest growing products whose demands are continually increasing globally. Comparing the production of search goods in these two countries, it is clear that Canada usually concentrates on Small and Medium-Sized enterprise SMEs, which are generally faced by several economic challenges[3]. However, the sector is more established in China than in Canada; therefore, trade between the countries ensures a proper exchange of all the goods and services that seem to be lacking in one state and available in the other. ALDO is an example of an SME company that benefits from the trade partnership between Canada and China through importing various raw materials and expertise needed in the production, marketing, and sales of their products.

On the other hand, Canada’s machinery and equipment compliments Chinese production process in very many ways. As much as Chinese industries are active, they have to depend on products from Canada. Technological goods from Canada has been of great help to Chinese manufacturing industries since; the Canadian assets are supplements for the entire production process. Machinery is one of the most significant requirements for the manufacturing industry. Therefore, before setting up any manufacturing industry in China, it is important to import the required machinery from Canada[4]. Various economic services are essential for the growth of any economy.

The services entail knowledgeable individuals and experts in different fields that combine their skills to meet an ultimate economic goal. China’s economy is growing at a faster rate, indicating the need for getting various services from within and outside the country to supplement the process. As a result, Canada has always found a better deal in exporting its services to China to assist with resource management and economic planning. However, the trading partnership between the two countries has strengths, weaknesses, opportunities, and threats that must be considered for desired future benefits through maintaining the excellent side and solving the existing challenges.

SWOT Analysis

Strengths

· Both China and Canada have various trading resources ranging from technological to agricultural commodities, thereby availing an interactive trading environment that ensures maximum benefits between the countries.

· Canada’s technology supplements the Chinese manufacturing sector, while Chinese agricultural products are raw materials to Canadian industries.

· There is future speculation of the mutual economic advantage of the two countries following continued financial plans put in place by the Chinese president and Canadian Prime Minister.

· With the growing world’s economy, it is clear that trade partnerships between China and Canada would lead to considerable economic developments in both countries.

Weaknesses

· Trade tariffs existing in each country is a big blow to the trade partnership.

· Both governments from the two countries have failed to reduce the tariffs that continue to hinder the trade between the countries.

· The difference in the economy and the value of currency between Canada and China is posing a lot of challenges during the exportation and importation of commodities.

Opportunities

· The fact that each country finds the use of products from another country is a tremendous opportunity that will promote trade for a long time.

· The trade is likely to increase international relations that will, in turn, strengthen the bond between the two countries. The strong relationship is necessary for political, social, and cultural development.

· There is a possibility of expanding trade due to the rapidly growing Chinese economy.

Threats

· Canada being in the thirteenth rank of Chinese trade partners imply Canada is not the only trading partner, and that there are other twelve trading partners better than Canada. This is a threat to Canada.

· The existence of other developed countries supplying China with the required machinery is also a challenge to the partnership.

· The need to protect local manufacturers in each country is a barrier to international trade between the two countries.

· The fact that China’s technological sector is rapidly growing, there may be a reduced demand for Canada’s machinery in the future.

Bibliography

Allen, Nathan, Andrea Lawlor, and Katerina Graham. “Canada’s twenty-first-century discovery of China: Canadian media coverage of China and Japan.” Canadian Foreign Policy Journal (2018): 1-18.

Ciuriak, Dan, Ali Dadkhah, and Jingliang Xiao. “Quantifying a Canada-China Free Trade Agreement.” Available at SSRN 2720074 (2016).

Government of Canada. (2013). Canada-China Economic Complimentary Study. https://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/china-chine/study-comp-etude.aspx?lang=eng

Landriault, Mathieu, and Paul Minard. “Canada/China free trade agreement: A public opinion appraisal.” Canadian Foreign Policy Journal 24, no. 1 (2018): 113-117.

[1] Allen, Nathan, Andrea Lawlor, and Katerina Graham. “Canada’s twenty-first-century discovery of China: Canadian media coverage of China and Japan.” Canadian Foreign Policy Journal (2018): 1-18.

[2] Ciuriak, Dan, Ali Dadkhah, and Jingliang Xiao. “Quantifying a Canada-China Free Trade Agreement.” Available at SSRN 2720074 (2016).

[3] Landriault, Mathieu, and Paul Minard. “Canada/China free trade agreement: A public opinion appraisal.” Canadian Foreign Policy Journal 24, no. 1 (2018): 113-117.

[4] Government of Canada. (2013). Canada-China Economic Complimentary Study. https://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/china-chine/study-comp-etude.aspx?lang=eng