Vancouver Sun Newspaper, by Derrick Penner
Business Section, Saturday, November 19, 2011
Source: google images
Brutally aggressive protests, murderous rampages, and fraudulently corrupt government – not what Canadian companies contemplating non-traditional expansion in a foreign country would immediately contemplate. Sauder School of Business Professor Keith Head states, “What BC companies need to keep in mind the most is that to make money, they are often going to wind up going into risky places” (Penner, Vancouver Sun) Whether facing experiences similar to Methanex, who closed a newly opened plant in Egypt after violent demonstrations nearby resulted in the death of civilians and soldiers or that of many mining companies who, due to the paucity of resources in “safer” regions, consider business in potentially perilous parts of Africa, it comes down to a the age old notion of risk versus reward. There are ways to mitigate risk including clarity of intent and an understanding of legislation and law; ensuring technological networks of proficiency; appropriate salaries and benefit packages for workers; and an understanding of social norms and expectations. At the end of the day, engaging and operating a business abroad remains a gamble. Winners will reap the immense benefits of success, while losers face the devastation of failure. Risky? Perhaps, but still a chance many Canadian companies appear prepared to take.
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