Investing In Canada
Investing In Canada - Factors that are attractive for direct investment in
Canada.
Canada is the second largest country in the world, occupying close to 10 million square kilometres of land bounded by the Atlantic, Pacific and Arctic oceans.
Canada shares a 6,000 kilometre border and the five largest freshwater lakes in the world with the United States. Known as the Great Lakes, they provide a route to the Atlantic via the St.- Lawrence Seaway, permitting direct access to international markets.
More international companies are investing in Canada. The stock of foreign direct investment (FDI) in Canada has increased steadily over the past five years to reach over $130 billion last year. Investor confidence is high.
International companies are discovering what firms in the United States have known for decades: it pays to invest in Canada. There is a government commitment to attract foreign direct investment. Canada's government provides a competitive, welcoming climate for international business. It is committed to fiscal responsibility, deficit reduction and job creation.
The following are some essential points all of which prove Canada is a favorable choice: Domestic market; wage competitiveness; work force quality; International business skills; raw materials; energy costs; infrastructure; business services and legal environment.
Domestic Market
Canada's per capita purchasing power is second only to that of the United States, among the G-7 countries, and the OECD expects Canada to lead the industrialized countries in near-term economic growth. Inflation is below two per cent and forecast to remain low. Cost of money is lower than it has been for decades.
Exports are at record high, having increased by 14 per cent in 1993 over 1992.
Under free trade, Canadian-based companies have increased their market share of the Canada-U.S. market. Further, the Canada-U.S. Free Trade Agreement (FTA), together with the North American Free Trade Agreement (NAFTA) which came into force on January 1, 1994, gives Canadian-based companies an unparalleled access to 365 million people, forming an economy larger than that of the European
Community. The combined 1993 GDP value of the Canada-Mexico-U.S. market was in excess of $8.5 trillion.
Competitive Wages and Benefit Rates:
Many international corporations find the Canadian work force to be highly cost- effective. On average, wages in Canada's business centers are lower than those in nearly all major business centers around the world. Hourly wages of Canadian production workers have risen only 5.4 percent since 1990. Canadian manufacturing wage rates showed the second slowest growth among G-7 countries in
1992, averaging 2.6 percent. In contrast, hourly increases in Britain and
Germany have been 12.4 and 14.3 percent, respectively.
Educated and Skilled Work Force
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Though the events of the past certainly have a direct influence on the world today. The ardent relationship that lies between Canada and the Netherlands can be referenced to the pretentious days nearing the end of the Second World War. Where Canada had played a significant role as liberators in Holland during this misfortunate time. Canada had provided the Dutch Royal Family with a safe haven. Canadians fought battles through France, Belgium, the Scheldt, and Germany before being sent back to the Netherlands.
From 100 CE to 600 CE the Chinese had many cultural and political life changes and continuities. A political change was in the end of the Classical Chinese period when the Han Dynasty fell. A cultural change during 100 CE to 600 CE was the paper invention that led to passing down cultural rituals. Not only were there changes but there was also continuities in the Chinese political and cultural life. An example of a cultural continuity is the increasing power of Buddhism. A political continuity is the ruler of the Chinese wanting the people to be protected with for instance The Great Wall of China.
Canada’s ability to maintain a healthy income is important, for without it, Canada’s economy would not be functional. This is where Canada’s three main exports come into play. In 2013, Canada earned 133 billion dollars in exporting Mineral products, 123 billion dollars of that coming from mineral fuels, oils, products of their distillation, bituminous substances, and mineral waxes (Ibid.). With such a booming mineral industry, Canada receives a large income from mining that can be invested in schools, jobs, public projects, and many other important areas . Also, the earnings can be devoted towards small businesses looking to expand by using government funding programs, which helps support and expand Canadian economy (Mentor Works). Overall the money is used for activities that support the Canadian economy and make numerous people’s lives better.
Ultimately, however, it is Canadian exporters of all sizes and in all industries that make this relationship as successful as it is. In 2003, Canada exported approximately C$365 billion worth of goods and services to the U.S., while it imported nearly C$280 billion from its southern neighbour. In fact, U.S. exporters sold more goods to Canada in 2003 than they did to the European Union.
At first, the outdated view of Canada has to be changed in the international business community. Worldwide, they should publish and do some institutional advertising about all the updated news of Canada. They can also do some testimonial in term of telling all the benefit of investing money in Canada. Likewise, they can also send some booklet about Canada to various central industries through worldwide. Therefore, after knowing the opportunity of all the benefits, they might be curious to invest in near future.
People outside of Canada are baffled at how Canada ended up in such a state of affairs. Canada as a country has a lot going for it. A high GNP, and high per capita income in international terms. It is ranked at the top of the...
There is no denying the presences of the Great Lakes, not only are they unavoidable, but they have also been a major player in the growing of civilization in North America and Canada. A person would have to live under a rock, no pun intended, to not know about these phenomenons. Most would ask from where did these Great Lakes come? How did they form? How are they beneficial? What are some of the Great Lakes here? A Great Lake is an extremely large inland freshwater sea, which is amazing since we are surround by oceans occupied with salt water. The Great Lakes are the largest system of fresh surface water on Earth, which makes them vital to our survival. However, they have been subject to damage by pollutants. There are five lakes in North America, which are: Lake Michigan, Huron, Erie, Superior, and Ontario. Not many people take the time to try to understand our Great Lakes or the importance of them. Coming to understand what these Great Lakes are, how they got here, and how they are beneficial to our ecosystem will ultimately help us further appreciate their vital diversity and encourage us to preserve them.
Every country in the world has its own cultural uniqueness. What makes Canada even more unique than other countries is the fact that it is a melting-pot of many other cultures. What happened when all these cultures came together and started having contact with each other is that each culture proved itself exclusive but somewhat compatible with the other cultures. That may have caused people of different ethnic groups not to bond in such successful ways; nevertheless there still exists a strong attachment between an individual and their roots. That fusion and unity of the different cultures in this country makes its economy unique.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
In a developing country like Canada, new products are continually being produced for use within Canada and to be exported to. other countries for profit. Canada’s healthcare is superior; we are able to eliminate diseases. like the measles. Canada keeps up with the latest technology in medical equipment and medicines to treat Canadians.
Rahman, S. H. (2006). International Market Selection Process: An Investigation of the Relevance of Business Operating Environment. Journal of International Business Research, 5(1), 73-86.