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During a conference in Toronto this past week, Goldman Sachs CEO Lloyd Blankfein, seen in 2013, advised Canadian business leaders looking to expand south of the border.Craig Ruttle/The Associated Press

Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc., has some simple advice for Prime Minister Justin Trudeau as he works to forge a relationship with maverick U.S. President Donald Trump: relax, and ignore Twitter.

Mr. Blankfein was in Toronto last week sending an equally straightforward message to Canadian business leaders considering U.S. expansion: jump in, it doesn't get much better than this.

The head of what is arguably the world's most influential investment bank – Goldman veterans are sprinkled throughout the new U.S. Republican administration and are part of the DNA of most Western governments – took a decidedly practical view when asked what insights on Mr. Trump he would offer Mr. Trudeau, and Canadian CEOs.

Opinion: Behind Trump's bluster, Americans are ready to do business with Canada

"My advice would be, don't extrapolate what's in a tweet to the larger relationship between Canada and the U.S.," said Mr. Blankfein following a Goldman-sponsored investment conference. He said that friction points between Canada and the United States on trade, such as softwood lumber and dairy products, are long-smoldering issues and "Trump simply stirred up the embers."

As a self-made success – Mr. Blankfein's father was a New York City postal worker – the 62-year-old Goldman CEO said he respects Mr. Trump's "unique" path to the White House. He noted that since arriving in the White House, the President has shown considerable flexibility on foreign relations with countries such as China.

That new way of doing business in Washington means Canada has every opportunity to work the art of the deal on favourable terms, such as revisiting a 24-year-old North American free-trade agreement that is showing its age. Mr. Blankfein said Canada should go into talks with a deep understanding where NAFTA has fallen short and "where the U.S. position may be right," and capitalize on the chemistry that seems to exist between Mr. Trudeau and Mr. Trump.

"The Prime Minister was extremely well-received in Washington," said Mr. Blankfein, adding that a friendly relationship counts for a great deal with Mr. Trump, who typically does business based on personal ties.

Goldman's CEO has well-rehearsed responses when it comes to criticisms of the investment bank's ties to government – and a thick enough skin to throw out the playful nickname "Government Sachs" when asked about these links. He said Goldman attracts, and seeks out, individuals who want to make a contribution to their community and public life as part of a successful career.

"We are influential because we are successful, the reverse is not true," said Mr. Blankfein. "While a number of our people depart for careers in public services, we seldom see government officials join us."

When it comes to Canadian companies expanding into the United States, a preoccupation for most domestic CEOs, Mr. Blankfein said the Trump administration is clearly pro-business and deal-friendly. He said the window is open for Canadian expansion in a number of sectors, including energy, financial services and utilities. Mr. Blankfein said in the current environment, with low interest rates and a relatively strong North American economy, Canadian companies are buyers, while many American peers are open to selling their businesses.

However, he cautioned that acquisition strategies need to be tightly focused, as U.S. markets, similar to those of Asia and Europe, tend to be regional. Mr. Blankfein said these cultural differences loom large in successfully integrating businesses, but said blending Canadian and U.S. companies can be straightforward, because the two countries share regional values. "In many ways, New York has more in common with Toronto than it does with L.A.," he said.

Mr. Blankfein was in Toronto as part of a larger strategic push to increase profit by expanding the New York-based investment bank's global footprint. Goldman's strategy is to advise and finance the world's largest businesses, and that means having boots on the ground in every major economy.

As a survivor of numerous global crises during his four decades in finance, Mr. Blankfein said successful business leaders need to take a long-term view on global expansion. "I shake my head when I read articles on how the BRIC [Brazil, Russia, India and China] nations have somehow failed," Mr. Blankfein said. "Their growth is uneven, but that's why investors look for a higher yield from these countries."

When asked what Goldman will look like in 10 years time, Mr. Blankfein said he expects the partnership culture and lines of business will be much the same, but the investment bank will have a larger presence in Asia, South America and, potentially, Africa. And to put flesh on that strategy, he finished the conference in Toronto and hopped on a jet for client meetings in London.

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