GLOBAL MACRO ECONOMICS TOPIC – COUNTRY REPORT ON CANADASUBMITTED BY: SUBMITTED TO:ANKUR TYAGI RAKHI SINGHADITYA MAHENDRA RACHNA MADANBHAVANA LAKHWANIDEEPANSHU WADHWAEKTA SINGHMEDHAVI VERMAMADHUR AGARWALPRIYANKA SHARMAMADHAV SHARMARAHUL KUMAR
A Short History of CanadaFirst PeopleAboriginal peoples are thought to have arrived from Asia thousands of yearsago by way of a land bridge between Siberia and Alaska. Some of them settledin Canada, while others choose to continue to the south. When the Europeanexplorers arrived, Canada was populated by a diverse range of Aboriginalpeoples who, depending on the environment, leading a wandering life with nofixed abode or settled lifestyles, were hunters, fishers or farmers.First contacts between the Aboriginal peoples and Europeans probablyoccurred about 1000 years ago when Icelandic Norsemen settled for a brieftime on the island of New found land. But it would be another 600 years beforeEuropean exploration began in earnest.First Colonial OutpostsSeeking a new route to the rich markets of the Orient, French and Britishexplorers plied the waters of North America. They constructed a number ofposts - the French mostly along the St. Lawrence River, the Great Lakes andthe Mississippi River; the British around Hudson Bay and along the Atlanticcoast. Although explorers such as Cabot, Cartier and Champlain never found aroute to China and India, they found something just as valuable - rich fishinggrounds and teeming populations of beaver, fox and bear, all of which werevalued for their fur.French and British were began to settle permanently in the early 1600s andincreased throughout the century. With settlement the economic activity came intoforce , but the colonies of New France and New England remained economicallydependent on the fur trade and politically and militarily dependent on theirmother countries.Inevitably, North America became the focal point for the bitter rivalry betweenEngland and France. After the fall of Quebec City in 1759, the Treaty of Parisassigned all French territory east of the Mississippi to Britain, except for theislands of St. Pierre and Miquelon, off the island of Newfoundland.
Under British rule, the 65 000 French-speaking people of Canada had asingle aim - to retain their traditions, language and culture. Britain passed theQuebec Act (1774), which granted official recognition to French Civil Law andguaranteed religious and linguistic freedoms.Large numbers of English-speaking colonists, called Loyalists because theywished to remain faithful to the British Empire, sought refuge in Canada afterthe United States of America won its independence in 1776. They settledmainly in the colonies of Nova Scotia and New Brunswick and along the GreatLakes.The increase in population led to the creation in 1791 of Upper Canada (nowOntario) and Lower Canada (Quebec). Both were granted their ownrepresentative governing institutions. Rebellions in Upper and Lower Canada in1837 and 1838 prompted the British to join the two colonies, forming theunited Province of Canada. In 1848 the joint colony was granted responsiblegovernment. Canada gained a further measure of autonomy but remained partof the British Empire.A Country Is BornBritains North American colonies - Canada, Nova Scotia, New Brunswick,Prince Edward Island and Newfoundland - grew and prospered independently.But with the emergence of a more powerful United States after the AmericanCivil War, some politicians felt a union of the British colonies was the only wayto fend off eventual annexation. On July 1, 1867, Canada East (Quebec),Canada West (Ontario), Nova Scotia and New Brunswick joined together underthe terms of the British North America Act to become the Dominion of Canada.The government of the new country was based on the British parliamentarysystem, with a Governor General (the Crowns representative) and a Parliamentconsisting of the House of Commons and the Senate. Parliament received thepower to legislate over matters of national interest (such as criminal law, tradeand commerce, and national defence), while the provinces were givenlegislative powers over matters of "particular" interest (such as property andcivil rights, hospitals and education).
Westward ExpansionSoon after Confederation, Canada expanded into the northwest. Ruperts Land- an area extending south and west for thousands of kilometres from HudsonBay - was purchased by Canada from the Hudsons Bay Company, which hadbeen granted the vast territory by King Charles of England in 1670.Westward expansion did not happen without stress. In 1869, Louis Riel led anuprising of the Mtis in an attempt to defend their ancestral rights to the land. Acompromise was reached in 1870 and a new province, Manitoba, was carvedfrom Ruperts Land.British Columbia, already a Crown colony since 1858, decided to join thesssDominion in 1871 on the promise of a rail link with the rest of the country;Prince Edward Island followed suit in 1873. In 1898, the northern territory ofYukon was officially established to ensure Canadian jurisdiction over that areaduring the Klondike gold rush. In 1905, two new provinces were carved fromRuperts Land: Alberta and Saskatchewan; the residual land became theNorthwest Territories. Newfoundland preferred to remain a British colony until1949, when it became Canadas 10th province.The development of new provinces coincided with an increase of immigration toCanada, particularly to the west. Immigration peaked in 1913 with 400 000coming to Canada. During the pre-war period, Canada profited from theprosperous world economy and established itself as an industrial as well as anagricultural power.A Nation MaturesCanadas substantial role in World War I won it representation distinct fromBritain in the League of Nations after the war. Its independent voice becamemore and more pronounced, and in 1931 Canadas constitutional autonomyfrom Britain was confirmed with the passing of the Statute of Westminster.In Canada, as elsewhere, the onset of the Great Depression in 1929 broughthardship. As many as one of every four workers was without a job and theprovinces of Alberta, Saskatchewan and Manitoba were laid waste by drought.
Ironically, it was the need to supply the Allied armies during World War II thatboosted up Canada out of the Depression.Since World War II, Canadas economy has continued to expand. This growth,combined with government social programs such as family allowances, old-agesecurity, universal medicare and unemployment insurance, has given Canadiansa high standard of living and desirable quality of life.There are some changes which are noticeable have occurred in Canadasimmigration trends. Before World War II, most immigrants came from the BritishIsles or eastern Europe. Since 1945, increasing numbers of southern Europeans,Asians, SouthAmericans and people from the Caribbean islands have enriched Canadasmulticultural mosaic.On the international scene, as the nation has developed and matured, so have itsreputation and influence. Canada has participated in the United Nations since itsinception and is the only nation to have taken part in almost all of the UNsmajor peacekeeping operations. It is also a member of the Commonwealth, laFrancophonie, the Group of Seven industrialized nations, the OAS(Organizationof American States) and the NATO (North Atlantic Treaty Organization)defence pact.A New Federation in the MakingThe last quarter of a century has seen Canadians grapple once more withfundamental questions of national identity. Discontent among manyFrench-speaking Quebeckers led to a referendum in that province in 1980 onwhether Quebec should become more politically autonomous from Canada, buta majority voted against that option.In 1982, the process toward major constitutional reform culminated in thesigning of the Constitution Act. Under this Act, the British North America Actof 1867 and its various amendments became the Constitution Act, 1867-1982.The Constitution, its Charter of Rights and Freedoms and its general amendingformula redefined the powers of governments, entrenched the equality ofwomen and men and protected the rights of individuals and ethnoculturalgroups.
Two major efforts were made to reform the constitutional system: the 1987Meech Lake Accord - which was not implemented since it did not obtain thelegislative consent of all provinces - and the 1991 Charlottetown Accord. TheCharlottetown Accord would have reformed the Senate, entrenched theprinciple of Aboriginal self-government and made other major changes in theConstitution. It was rejected by Canadians in a national referendum held onOctober 26, 1992.The Parliament of Canada has since passed a bill, on February 2, 1996,guaranteeing Canadas five major regions that no constitutional change will bethere concerning them would be made without their unanimous consent. As well,less than amonth after the Quebec sovereignty referendum of October 30, 1995,Parliament passed a resolution recognizing Quebec as a distinct society withinCanada.GeographyCanada occupies a major northern portion of North America, sharing landborders with the contiguous United States to the south and the US stateof Alaska to the northwest. Canada stretches from the Atlantic Ocean in theeast to the Pacific Ocean in the west; to the north lies the Artic Ocean.Greenland is to the northeast, while Saint Pierre and Miquelon is south ofNewfoundland. By total area (including its waters), Canada is the second –largest country in the world, after Russia. By land area alone, Canadaranks fourthSince 1925, Canada has claimed the portion of the Arctic between 60° and141°W longitude, but this claim is not universally recognized. Canada ishome to the worlds northernmost settlement, Canadian Force Station Alert,on the northern tip of Ellesmere Island – latitude 82.5°N – which lies 817kilometres (508 mi) from the North Pole. Much of the Canadian Arctic is
covered by ice and permafrost. Canada has the longest coastline in theworld, with a total length of 202,080 kilometres (125,570 mi); additionally,its border with the United States is the worlds longest land border,stretching 8,891 kilometres (5,525 mi).Since the end of the last glacial period, Canada has consisted of eightdistinct forest regions, including extensive boreal forest on the CanadianShield. Canada has around 31,700 large lakes, more than any othercountry, containing much of the worlds fresh water. There are also fresh-water glaciers in the Canadian Rockies and the Coast Mountain. Canada isgeologically active, having many earthquakes and potentially activevolcanoes, notably Mount Meager, Mount Garibaldi, Mount Cayley, andthe Mount Edzizza volcanic complex. The volcanic eruption of theTseaxCone in 1775 was among Canadas worst natural disasters, killing2,000 Nisga’s people and destroying their village in the Nass River valley ofnorthern British Columbia. The eruption produced a 22.5-kilometre(14.0 mi) lava flow, and, according to Nisgaa legend, blocked the flow ofthe Nass River.Canadas population density, at 3.3 inhabitants per square kilometre(8.5 /sq mi), is among the lowest in the world. The most densely populatedpart of the country is the Quebec city – Windsor Corridor, situated inSouthern Quebec and Southern Ontario along the Great Lakes and the St.Lawrence River.Average winter and summer high temperatures across Canada vary fromregion to region. Winters can be harsh in many parts of the country,particularly in the interior and Prairie provinces, which experiencea continental climate, where daily average temperatures are near −15 °C ,but can drop below −40 °C (−40 °F) with severe wind chills In non coastalregions, snow can cover the ground for almost six months of the year, whilein parts of the north snow can persist year-round. Coastal British Columbiahas a temperate climate, with a mild and rainy winter. On the east and westcoasts, average high temperatures are generally in the low 20s °C (70s °F),while between the coasts, the average summer high temperature rangesfrom 25 to 30 °C (77 to 86 °F), with temperatures in some interior locationsoccasionally exceeding 40 °C (104 °F).
DemographicsThe 2011 Canadian census counted a total population of 33,476,688, anincrease of around 5.9 percent over the 2006 figure. Between 1990 and2008, the population increased by 5.6 million, equivalent to 20.4 percentoverall growth. The main drivers of population growth are immigration and,to a lesser extent, natural growth. About four-fifths of the population liveswithin 150 kilometres (93 mi) of the United States border. Approximately 80percent of Canadians live in urban areas concentrated in the Quebec City–Windsor Corridor, the British Columbia Lower Mainland, and the Calgary –Edomonton Corridor in Alberta. In common with many other developedcountries, Canada is experiencing a demographic shift towards an olderpopulation, with more retirees and fewer people of working age. In 2006,the average age was 39.5 years; by 2011, it had risen to approximately39.9 years.According to the 2006 census, the countrys largest self – reported ethnicorigin is Canadian (accounting for 32% of the population), followed byEnglish (21%), French (15.8%), Irish (13.9%), German (10.2%),Italian(4.6%), Chinese (4.3%), First Nations (4.0%), Ukrainian (3.9%), and Dutch(3.3%). There are 600 recognized First Nations governments or band,encompassing a total of 1,172,790 people.Canadas aboriginal population is growing at almost twice the national rate,and four percent of Canadas population claimed aboriginal identity in 2006.Another 16.2 percent of the population belonged to a non-aboriginal visibleminority. The largest visible minority groups are South Asian (4.0%),Chinese (3.9%) and Black (2.5%). Between 2001 and 2006, the visibleminority population rose by 27.2 percent. In 1961, less than two percent ofCanadas population (about 300,000 people) could be classified asbelonging to a visible minority group, and less than one percent asaboriginal. By 2007, almost one in five (19.8%) were foreign-born, withnearly 60 percent of new immigrants coming from Asia (includingthe Middle East). The leading sources of immigrants to Canada wereChina, the Philippines and India. According to Statistics Canada, visibleminority groups could account for a third of the Canadian population by2031.Canada has one of the highest per – capita immigration rates in the world.Driven by economic policy and family reunification, and is aiming for
between 240,000 and 265,000 new permanent residents in 2012, a similarnumber of immigrants as in recent years. In 2010, a record 280,636 peopleimmigrated to Canada. New immigrants settle mostly in major urban areaslike Toronto and Vancouver. Canada also accepts large numbersof refugees. The country resettles over one in 10 of the worlds refugees.Canada is religiously diverse, encompassing a wide range of beliefs andcustoms. According to the 2001 census, 77.1 percent of Canadians identifyas Christian; of this, Catholics make up the largest group, accounting for43.6 percent of the population. The largest Protestant denomination isthe United Church of Canada (accounting for 9.5% of Canadians), followedby Anglicans (6.8%), Baptists (2.4%), Lutherans (2%), and other Christiandenominations (4.4%). About 16.5 percent declare no religious affiliation,and the remaining 6.3 percent are affiliated with non-Christian religions, thelargest of which are Islam (2.0%) and Judaism (1.1%).Canadian provinces and territories are responsible for education. Themandatory school age ranges between 5–7 to 16–18 years, contributing toan adult literacy rate of 99 percent. In 2002, 43 percent of Canadians aged25 to 64 possessed a post-secondary education; for those aged 25 to 34,the rate of post-secondary education reached 51 percent. The Programmefor International Student Assessment indicates that Canadian studentsperform well above the OECD average, particularly in mathematics,sciences, and reading.Science and technologyIn 2011, Canada spent approximately C$29.9 billion on domestic researchand development . The country has produced ten Nobel laureates inphysics, chemistry and medicine and was ranked fourth worldwide forscientific research quality in a major 2012 survey of internationalscientists. It is additionally home to a number of global technologyfirms. Canada ranks twelfth in the world for Internet users as a proportion ofthe population, with over 28 million users, equivalent to around 84 percentof its total 2011 population.The Canadian Space Agency operates a highly active space program,conducting deep-space, planetary, and aviation research, and developingrockets and satellites. Canada was the third country to launch a satelliteinto space after the USSR and the United States, with the 1962 Alouette1 launch. In 1984, Marc Garmeau became Canadas first astronaut. As of
2012, nine Canadians have flown into space, over the course of fifteenmanned missions.Canada is a participant in the International Space Station (ISS), and is apioneer in space robotics,, having constructed the Canadarm, canadarm 2and Dexture robotic manipulators for the ISS and NASAs Space Shuttle.Since the 1960s, Canadas aerospace industry has designed and builtnumerous marques of satellite, including Radarsat – 1 and 2, ISIS andMOST. Canada has also produced a successful and widely used soundingrocket, the Black Brant; over 1,000 Black Brants have been launched sincethe rockets introduction in 1961.Economy of CanadaCanada has the eleventh-largest economy in the world (measured in US dollars atmarket exchange rates), is one of the worlds richest nations, and is a member ofthe Organization for Economic Co-operation and Development (OECD) andGroup of Eight (G8). As with other developed nations, the Canadian economy isdominated by the service industry, which employs about three quarters ofCanadians. Canada is unusual among developed countries in the importance of theprimary sector, with the logging industries and oil industries being two of Canadasmost important. Canada also has a good manufacturing sector, centered in CentralCanada, with the automobile industry and aircraft industry especially important.Canada has one of the highest levels of economic freedom in the whole world.Today Canada closely resembles the U.S. in its market-oriented economic system,and pattern of production. As of October 2011, Canadas national unemploymentrate stood at 7.4%, as the economy continues its recovery from the effects of the2007-2010 Global Financial Crisis. In May 2010, provincial unemployment ratesvaried from a low of 5.0% in Saskatchewan to a high of 13.8% in Newfoundland
and Labrador. According to the Forbes Global 2000 list of the worlds largestcompanies in 2008, Canada had 69 companies in the list, ranking Fifth next toFrance. As of 2008, Canada’s total government debt burden is the lowest in the G8,that is Group of Eight.International trade makes up a large part of the Canadian economy, particularly ofits natural resources. In 2009, agricultural, energy, forestry and mining exportsaccounted for about 58% of Canadas total exports. Machinery, equipment,automotive products and other manufactures accounted for a further 38% ofexports in 2009. In 2009, exports accounted for approximately 30% of CanadasGDP. The United States is by far its largest trading partner, accounting for about73% of exports and 63% of imports as of 2009. Canadas combined exports andimports ranked eighth among all nations in 2006.Canada has considerable natural resources spread across its varied regions. As anexample, in British Columbia the forestry industry is of great importance, while theoil and gas industry is important in , and Newfoundland and Labrador. NorthernOntario is home to a wide array of mines, while the fishing industry has long beencentral to the character of the Atlantic province, though it has recently been insteep decline. Canada has mineral resources of coal, copper, iron ore, andgold.These primary industries are increasingly becoming less important to the overalleconomy. Only some 4% of Canadians are employed in these fields, and theyaccount for 6.2% of GDP. They are still paramount in many parts of the country.Many, if not most, towns in northern Canada, where agriculture is difficult, existbecause of a nearby mine or source of timber. Canada is a world leader in theproduction of many natural resources such as gold, nickel, uranium, diamonds and
lead. Several of Canadas largest companies are based in natural resourceindustries, such as EnCana, Goldcorp, and Barrick Gold. The vast majority of theseproducts are exported, mainly to the United States. There are also many secondaryand service industries that are directly linked to primary ones. For instance one ofCanadas largest Manufacturing Industries is the pulp and paper sector, which isdirectly linked to the Logging Industry.The large reliance on natural resources has several effects on the Canadianeconomy and Canadian society. While manufacturing and service industries areeasy to standardize, natural resources vary greatly by region. This ensures thatdiffering economic structures developed in each region of Canada, contributing toCanadas strong regionalism. At the same time the vast majority of these resourcesare exported, integrating Canada closely into the international economy. Suchindustries also raise important questions of sustainability. Despite many decades asa leading producer, there is little risk of depletion. Moreover the far north remainslargely undeveloped as producers await higher prices or new technologies as manyoperations in this region are not yet cost effective. In recent decades Canadianshave become less willing to accept the environmental destruction associated withexploiting natural resources. High wages and Aboriginal land claims have alsocurbed expansion. Instead many Canadian companies have focused theirexploration and expansion activities overseas where prices are lower andgovernments more accommodating. Canadian companies are increasinglyplaying important roles in Latin America, Southeast Asia, and Africa.The exploitation of renewable resources have raised concerns in recent years. Afterdecades of escalating overexploitation the cod fishery all but collapsed in the1990s, and the Pacific salmon industry also suffered greatly. The Logging
Industry, after many years of activism, has in recent years moved to a moresustainable model.KEY INDUSTRIESSERVICE SECTOR:The service sector in Canada is vast and multifaceted, employing about threequarters of Canadians and accounting for 78% of GDP. The largest employer is theretail sector, employing almost 12% of Canadians. The retail industry is mainlyconcentrated in a small number of chain stores clustered together in shoppingmalls. In recent years, there has been an increase in the number of big-box stores,such as Wal-Mart (of the United States) and Future Shop (a subsidiary of the USbased Best Buy) and Zellers (since most of their leases have been purchased byTarget). This has led to fewer workers in this sector and a migration of retail jobsto the suburbs.The Second largest portion of the service sector is the business services, employingonly a slightly smaller percentage of the population. This includes the financialservices, real estate, and communications industries. This portion of the economyhas been rapidly growing in recent years. It is largely concentrated in the majorurban centre, especially Toronto, Montreal and Vancouver .The Education and Health sectors are two of Canadas largest, but both arelargely under the purview of the government. The health care industry has beenquickly growing, and is the third largest in Canada. Its rapid growth has led toproblems for governments who must find money to fund it.
Canada has an important high tech industry, and also an entertainment industrycreating content both for local and international consumption. Tourism is of everincreasing importance, with the vast majority of international visitors comingfrom the United States. Though the recent strength of the Canadian Dollar has hurtthis sector, other nations such as China have increased tourism to Canada.MANUFACTURINGThe general pattern of development for wealthy nations was a transition from aprimary industry based economy to a manufacturing based one, and then to aservice based economy. Canada did not escape this pattern - at its (abnormally highWorld War 2) peak in 1944, manufacturing accounted for 29% of GDP, decliningto 15.6% in 2005. Canada has not suffered as greatly as most other rich,industrialized nations from the pains of the relative decline in the importance ofmanufacturing since the 1960s. A 2009 study by Statistics Canada also found that,while manufacturing declined as a relative percentage of GDP from 24.3% in the1960s to 15.6% in 2005, manufacturing volumes between 1961 and 2005 kept pacewith the overall growth in the volume index of GDP. Manufacturing in Canadawas especially hard hit by the 2007-2010 global financial crises. As of 2010,manufacturing accounts for 13% of Canadas GDP, a relative decline of more than2% of GDP since 2005.Central Canada is home to branch plants to all the major American and Japaneseautomobile makers and many parts factories owned by Canadian firms such asMagna International and Linamar Corporation. Central Canada today producesmore vehicles each year than the neighboring U.S. state of Michigan, the heart ofthe American automobile industry. Manufacturers have been attracted to Canadadue to the highly educated population with lower labor costs than the United
States. Canadas publicly funded health care system is also an important attraction,as it exempts companies from the high health insurance costs they must pay in theUnited States.Much of the Canadian manufacturing industry consists of branch plants of UnitedStates firms, though there are some important domestic manufacturers, such asBombardier Inc.. This has raised several concerns for Canadians. Branch plantsprovide mainly blue collar jobs, with research and executive positions confined tothe United States.ENERGYCanada is one of the few developed nations that is a net exporter of energy - in2009 net exports of energy products amounted to 2.9% of GDP. Most importantare the large oil and gas resources centered in Alberta and the Northern Territories,but also present in neighboring British Columbia and Saskatchewan. The vastAthabasca Oil Sands give Canada the worlds third largest reserves of oil afterSaudi Arabia and Venezuela according to USGS. In British Columbia and Quebec,as well as Ontario, Saskatchewan, Manitoba and the Labrador region, hydroelectricpower is an inexpensive and relatively environmentally friendly source ofabundant energy. In part because of this, Canada is also one of the worlds highestper capita consumers of energy. Cheap energy has enabled the creation of severalimportant industries, such as the large aluminum industries in British Columbiaand Quebec.Historically, an important issue in Canadian politics is the interplay between theoil and energy industry in Western Canada and the industrial heartland of
Southern Ontario. Foreign investment in Western oil projects has fueled Canadasrising dollar. This has raised the price of Ontarios manufacturing exports and madethem less competitive, a problem similar to the decline of the manufacturing sectorin Holland. Also, Ontario has relatively fewer native sources of power. However, itis cheaper for Alberta to ship its oil to the western United States than to easternCanada. The eastern Canadian ports thus import significant quantities of oil fromoverseas, and Ontario makes significant use of nuclear power.The National Energy Policy of the early 1980s attempted to force Alberta to selllow priced oil to eastern Canada. This policy proved deeply divisive, and quicklylost its importance as oil prices collapsed in the mid-1980s. One of the mostcontroversial sections of the Canada-United States Free Trade Agreement of 1988was a promise that Canada would never charge the United States more for energythan fellow Canadians.AGRICULTURECanada is also one of the worlds largest suppliers of agricultural products,particularly of wheat and other grains. Canada is a major exporter of agriculturalproducts, to the United States and Asia. As with all other developed nations theproportion of the population and GDP devoted to agriculture fell dramatically overthe 20th century.
As with other developed nations, the Canadian agriculture industry receivessignificant government subsidies and supports. However, Canada has been a strongsupporter of reducing market influencing subsidies through the World TradeOrganization. In 2000, Canada spent approximately CDN $4.6 billion on supportsfor the industry. Of this, $2.32 billion was classified under the WTO designation of"green box" support, meaning it did not directly influence the market, such asmoney for research or disaster relief. All but $848.2 million were subsidies worthless than 5% of the value of the crops they were provided for, which is the WTOthreshold. Consequently, Canada used only $848.2 million of its $4.3 billionsubsidy allowance granted by the WTO.Business environment of canadaDespite the economic slowdown in much of canada over the last twelvemonths, its still a big world out there and it will continue to get bigger: evenwith the global downturn, global GDP will be over$ 60 trillion this year,according to the IMF. It was$36 trillion five years ago, and $29 trillion fiveyears before that. The USA is a $15 trillion dollar economy today: it was$8.6trillion dollar economy 10 years ago.china went from being a poor country,technology primitive and autarchic economy to the center of globalmanufacturing of consumer goods and a $3.8 trillion proto super power inless than two generations.Canada has doubled the size of its economy economy in the past decade.I think that companies both large and small have to keep these long termtrends in mind when considering their future and their options beyondCanada’s border. Somebody in the enterprise – the boardthe CEO, theexecutive committee, the VP for marketing, has to be thinking 5 and 10 yearsahead.
At the same time,it must be recognized that companies operate at the micro-economic level,at the market level. canadian companies that operate beyondour borders know that there are great business opportunities in Germany andMalaysia and the USand China,but most enterprises enterprises can’t beeverywhere. They have to make choices.Canadian companies have different reasons to expandinternationally:developing new export markets is an obvious objective formany,but there are many other reasons to seek opportunities abroad:todevelop new product lines, such as in the pharmaceutical industry; or to findopportunities less available at home, such as with engineering services, whoneed infrastructure projects in less developed countries; or to obtain a betterreturn on investments in markets growing much faster than our own.BUSINESS OPPURTUNITIES IN CANADAWhere to go to seek-out these opportunities is not an easy decision to make.There is only so much funding for long-term planning and development, thereare lots of business opportunities, so you want to choose your option wisely.Based on the research of previous Global Entrepreneur Indicator reports, theadvice of peers and the economic environment are the two most importantfactors that influence entrepreneurs’ assessments of a country’s ability tofoster entrepreneurial activity.If peer advice and the economy are the factors which dictate entrepreneurs’willingness to conduct new business activities, than the ability to accesscapital dictates their ability to do so. Together,these factors showcase theentrepreneurial community’s willingness and ability to assertively conductnew business –precisely the type of activities that healthy (or recovering)economies require.Key findings include:Half of the global entrepreneurial community expects the state of the economyin their countries to improve,but only slightly.canada and the latinAmerica/Caribbean regions hold the most positive predications’and by asignificant margin.
Entrepreneurs are polarized in their views regarding;The accessibility of capitalIt is apparent that there is no one trend dominating entrepreneurial access tocapital.in fact while one in 10 respondants indicated that it is very easy forthem to acquire capital,the same proportion reported extreme difficulty.Starting a new business:Significantly new entrepreneurs would recommend starting a new businessnow than a year ago.Entrepreneurs are newly polarized in their opinions:one in threeentrepreneurs is very likely to recommend starting a new business,while onein five entrepreneurs is very unlikely.canada and the latin America/Caribbeanregions are the most positive about the business environment overall.Economic environment:Well more than (61%) of entrepreneurs globally expect the state of theeconomy in their countries to improve,although they do not expect to see alarge improvement.Entrepreneurs in Canada and the latin America/carribean region have thehighest expectations of a positive change in the economic landscape .theoverwhelming majority of entrepreneurs(91%)in Canada expect animprovement.a sizeable majority(74%) of entrepreneurs in the latinAmerica/Caribbean region expectthe economy to improve , although notgreatly.Proclivity to Start a Business
A key finding of this research is that, of all factors entrepreneurs take intoaccount when deciding whether or not to start a new business, the advice ofpeers is globally the most important factor, followed closely by the economy.A concerning trend is that, unlike a year ago, where the vast majority ofentrepreneurs (86%) would have started a new business in their country, justmore than two-thirds (68%) of entrepreneurs would do so now. Still, only30% of entrepreneurs are very likely to recommend starting a business, andone in five entrepreneurs is very unlikely to do so.In stark contrast to their generally positive assessment of the economy, butperhaps explainedSomewhat by their lackluster predictions on access to capital, Canadianentrepreneurs were the least positive about starting a new business. Inalignment with the polarized global indicator at its extremes, 30% ofentrepreneurs stated that they would be very likely to recommend starting abusiness in Canada.The Latin America / Caribbean region is the most positive about starting aventure, with 40% being very likely start up a business and the vast majority80% at least likely to recommend starting one. Asia / Pacific entrepreneurswere also generally positive (71%) about starting a business. The Europe /Middle East region (64%) is more closely aligned with the global indicator,but without the clear polarization of their global peers.U.S. entrepreneurs were almost directly aligned with the global indicator interms of their likelihood to start a business. However, the number of U.S.entrepreneurs who would be very unlikely to start a business (11%) is lessthan half of the global average.CANADA – INDIA BUSINESS COUNCIL
About C-IBCActivities and InitiativesIndia is an emerging power in the 21st century, and is forecasted to become the3rd largest economy in the world. India is a source of talent and innovation, andwill be be integral to Canada’s future prosperity. India supports a vibrant,pluralistic democracy and insists on an open and free press.Whatever the goals and objectives oftheir business the C-IBC has a membershipoption to suit.Whichever option they choose they will receive a comprehensive and costeffective range of service carefully designed to initiate business development inIndia, or further develope their existing business in India.They deliver advisory services that offer insight and information, businessintelligence, market entry and operation support.They encourage opportunities to network and meet the right people, attend tradedelegations, advocate on behalf of their interest, enable access to key decisionsmakers, and provide advanced notice and preferred status at events. Theseevents include CEO forums, sector specific private sessions with senior Indianbusiness leader and investors, and flagship events such as our Diwali Gala Dinnerand business missions to India.They run active board level committees focused on a variety of sectors. Theyfocus on facilitating exports, partnerships and investment to and from India..OrganizationThe Canada-India Business Council has been a long-standing supporter of bilateraltrade and investment growth between Canada and India.
Founded in 1982 by the Bank of Nova Scotia, Bombardier and the late ThomasBata, the C-IBC has sought to deepen the relationship between corporate andinstitutional Canada and their Indian counterparts.C-IBC is governed by the board of directors, and is comprised of senior executivesfrom Canada’s leading organizations involved in India and alongside industryleaders from both small and medium-sized enterprise. The C-IBC has a secretariatthat is led by a president, Executive Director and an Executive Vice-President todirect the organization and operating team.C-IBC is headquartered in Toronto with operations in British Columbia, Quebecand New Delhi, INDIA. CONCLUSIONOne of the key lessons of the global recession and financial crisisis that policies matter. Countries that weathered the recessionbetter—including Canada—have generally been those with strongfiscal and monetary policy frameworks, as well as robust financialregulatory systems. The global recession has also demonstratedthat problems that originate in one country can quickly spreadaround the globe.As a dynamic trade-oriented economy, Canada remains exposedto financial and economic shocks that originate elsewhere. That iswhy Canada will exercise its leadership position to promote thecooperation to secure the global recovery and prevent futurecrises. As chair of the G-7 and host of the June 2010 G-20Leaders Summit, Canada is taking a leadership role as we movetoward a sustainable global recovery.Thus, by analyzing the various environment we can conclude that Canada has astrong cultural, legal & economical background and also have an excellent traderelations with the nation round the globe.