On a mission to go global. How Canadian companies can reach out to world markets through trade junkets

Governments at all levels have worked extensively to help more Canadian companies successfully export. Companies that export are bigger, pay higher wages, are more innovative and pay higher taxes — all of which contribute to Canada’s prosperity. Enabling more Canadian companies to succeed in foreign markets would further contribute to Canadian prosperity and competitiveness, which many reports have indicated has been slipping.

Most Canadian companies do not have the level of efficiency required to compete with international players. These firms need to invest in upping their game before venturing abroad. But many Canadian firms do have the capabilities to take on international competition — if only they could get over the initial hurdles to enter foreign markets.

But these hurdles are high, as we have seen first hand working with companies and our students at the Rotman School of Management. Even established companies with great ideas and phenomenal products or services struggle to enter foreign markets. A key to success abroad is the ability to identify and connect with foreign customers.

To do this effectively, managers need to understand how their company’s value can carry over to customers in different countries with different cultures, habits, and preferences. They also need the cultural intelligence to carry out effective business and social interactions in other countries. Federal, provincial, and local governments across Canada have identified these challenges, and each have created initiatives focused on addressing them.

One instrument in the tool kit is to participate in international trade missions that focus on a particular industry or theme. Companies operating in that industry are recruited to be part of the trade mission. These government led initiatives typically involve training which is focused on how to enable companies to benefit most from participating in trade missions.

In June 2023 the Ontario Ministry of Economic Development, Job Creation, and Trade , and in November 2023 Global Affairs Canada led a mission to the in Barcelona. These are just two of many such missions. When companies attend these trade missions as a group, with the support of governments and a network of other Canadian companies, the hurdles become more manageable.

These trips can be incredibly beneficial in helping Canadian companies understand global competition, identifying and meeting with potential customers as well as encountering companies that may be great strategic partners. Academia can also play an important part in such missions and the Rotman School has partnered with all the three levels of government to support them.

The partnership allows students to earn academic credit by working directly with companies on export strategies and their specific challenges. Students also accompany the companies to the trade shows allowing them opportunities outside the classroom to deploy strategies they've been studying. Students become more attractive when they enter the job market, companies benefit from fresh eyes and perspectives, and governments achieve their mandate of contributing to Canada’s prosperity.

In preparation for the Paris Air Show for an aerospace company, students examined potential long term partnership and collaboration opportunities. For another company developing an electric vertical takeoff and landing aircraft, Rotman students worked to build awareness, interest and potential investment resulting in international media coverage.

The founder of a food company said the students provided a road map and understanding of the next steps they needed to take in order to be successful in the new and difficult to penetrate Mexican market. And of course, the professors benefit because they bring the front line lessons learned back into the classroom.

Much of the focus on Canada’s sliding prosperity has been on a lack of innovation in the Canadian economy — there needs to be much more. At the same time, there are many companies that are in fact above the bar and have the capabilities to operate successfully in the global economy. Having students participate in these efforts can be win win win win for students, the companies, governments, and academics..