Wednesday, May 6, 2020

Investing In Canada Essay Example For Students

Investing In Canada Essay 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 irect 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. Canadas 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 hoice: Domestic market; wage competitiveness; work force quality; International business skills; raw materials; energy costs; infrastructure; business services and legal environment. Domestic Market Canadas 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. trillion. Competitive Wages and Benefit Rates: Many international corporations find the Canadian work force to be highly cost- ffective. On average, wages in Canadas 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 The cost-effectiveness of the Canadian work force becomes especially apparent in the high level of skills and education of the workers. Canada leads the G-7 countries in advanced education, with about two-thirds of its 20 to 24-year-olds enrolled in post-secondary education. Canadas 67 universities and colleges produce more than 25,000 graduates annually in engineering, the applied sciences, the physical sciences and mathematics, while its technical institutes provide 11,000 graduates annually in areas relating to electronics and telecommunications. Canadian operations enjoy low turnover and absenteeism rates, and the days lost to work stoppages have been cut by more than one-half in the past two years. Major international firms have also won many productivity improvements in their Canadian operations through work place initiatives in labor-management relations. International Business Skills Canada is a land of immigrants. Employers will find pools of experienced workers who also offer fluency in foreign languages, knowledge of international cultures and business practices, and networks of business contacts in the key Asian, European and American markets. Canada is an effective bridge between North America and Europe. Canadian business practices and laws are a blend of American and European cultures. Canadas metric system of measurement means that Canadian manufacturers can readily meet requirements for European standards and measures. In addition, new government initiatives, such as the Skill Investment Program, are further enhancing Canadas ability to train and retrain workers for tomorrows growth industries. Abundant Raw Materials Canadas rich mineral reserves and natural resources, coupled with its cost- effective ability to extract and harvest, enable Canada to be a leader in exports of both raw and processed commodities. Canada is the worlds top roducer of newsprint and zinc, as well as the second largest producer of nickel, pulp and potash. Canadian-based processors and manufacturers can enjoy reduced transportation costs by being close to these globally competitive sources of supply. Vast, low-cost Energy Supplies In addition to raw materials, Canadas rich mineral deposits involve mineral fuels and river systems that have been tapped for massive energy reserves. These include huge deposits of oil and gas, coal and uranium, as well as virtually unlimited hydroelectric generating capacity. Canada is one of two G-7 countries hat are self-sufficient in oil supplies. Canada has the lowest electricity cost of all the G-7 countries, and is the only G-7 member with enough natural gas to be a net exporter. Oceans EssayThe phasing out of the protectionist Mexican Auto Decree will create significant trade, sourcing and investment opportunities for both assemblers and parts manufacturers. The risks of adopting this strategy are the possibilities of jeopardizing quality of the firms auto parts, and the difficulty of implementing quality and control check on their products. 3. (B). The services that Canadian Government can provide to assess Canadian businesses: Department of Foreign Affairs and International Trade (DFAIT) DFAIT promotes and protects the interests of Canada and the common values of Canadians throughout the world. Within its International Trade mandate, DFAIT strives to maintain and enhance Canadas economic health and competitiveness by actively pursuing and promoting Canadas economic and commercial interests with its global partners. Through International Trade Centres (ITCs) in Canada and its missions abroad, DFAIT implements a wide range of initiatives designed to attract productive foreign investment to Canada and promotes Canadian firms as strong investment, commercial and technology partners. DFAIT programs and initiatives ensure that Canadians have full access to investment opportunities n Canada and abroad. DFAIT meets its objectives through working closely with federal departments such as Industry Canada, as well as with the provinces and major business and industry associations. Services provided, in Canada, by DFAIT include basic export and trade-related advice, investment and technology development counselling; including publications, market studies and information on government assistance programs. To support its activities abroad, DFAIT has five geographic branches, each focused on a specific area of the world: Africa and the Middle East, Asia- Pacific, Europe, Latin America and the Caribbean, and the United States. DFAIT also has a network of trade commissioners and commercial officers, in Canada and abroad, to assist Canadian firms and promote trade, investment, technology and strategic alliances. Canadas International Business Strategy Canadas International Business Strategy is a blueprint which lays out how government and industry can best work together to generate new international opportunities for Canadian business. CIBS is central to the federal governments commitment to a Team Canada; partnership with Canadian industry and the rovinces. Industry Canada (IC) Industry Canada is responsible for Canadian industry and science, tourism, telecommunications, business and consumer framework policy. IC also administers the Investment Canada Act which includes investment review and notification procedures. IC is organised on an industry sector basis, and works directly with Canadian companies and business associations to promote industrial, scientific and technological development, including promoting and facilitating foreign direct investment in those sectors in Canada. It manages a portfolio of programs nd provides services in the areas of business intelligence and information, technology and industrial development, and trade and market development. It also maintains a network of regional offices across Canada and works closely with the provinces. 3. ( c). The specialists to use in import/export: Export Development Corporation (EDC) EDC is a customer-driven, financial services corporation dedicated to helping Canadian business succeed in the global marketplace. EDC facilitates export trade and foreign investment through the provision of risk management services, including insurance (export credit, foreign investment), inancing and guarantees to Canadian companies and their customers. Canadian business center Where you meet and how you present yourself could make the difference between closing a deal or closing a door. Thats what the Canadian Business Center is all about. The Canadian Business Center can play a key role in your positioning, marketing, and sales strategies. You can host special events including sales presentations, seminars, receptions, meetings an exhibits in the deluxe meeting facilities. The firm can have a single contact point for their Mexican clients and partners, where they can. each you any time you are in Mexico. Up to 30 fully equipped individual booth spaces available Ideal for a variety of events including mini- trade shows, product demonstrations, special exhibits and receptions. The center offers Professional Services. The Canadian Business Center can give you immediate access to the resources of the Canadian Embassy and the extended network of clerical resources to assist you with all your business correspondence; Translation and Interpretation Services to facilitate quick and effective communication with your Mexican partners and clients Centrally located in downtown Mexico City, the Canadian Business Center service offered through the Department of Foreign Affairs and International Trades Access North America program. It is part of an overall strategy to help Canadian companies take advantage of emerging business opportunities in Mexico. Experts In International Law and Trade For the firm to survive and be competitive in the global market, it must be aware of the international laws and regulations of the foreign countries they are dealing with. To facilitate this task, its extremely important to consult experts in international laws and global trade.

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