This document discusses foreign direct investment (FDI) in Canada. It provides data showing that while Canada dropped one spot to third place in FDI rankings in 2019, its FDI inflows increased nearly 60% from the previous year, reversing a downward trend. However, the document notes this does not tell the full story, arguing that Canada lacks port capacity and faces unfair regulations and taxes in the oil sector that have reduced investment. It also claims Canada has become less competitive in recent years and the federal government has done little to address issues like rail blockades. The document advocates for Canada to focus on improving infrastructure like ports and rails to attract more sustainable FDI.

1. FDI - FOREIGN DIRECT
INVESTMENT - THE
IMPORTANCE OF CAPITAL
INFLOW
PAUL YOUNG CPA, CGA
MARCH 18, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Emerging Technology
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public Finance and
Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• What is FDI?
• Canada vs Australia FDI
• Blog – FDI
• FDI / 2018
• Competitiveness and FDI by sector
• Summary

4. INTRODUCTION
• Canada has returned as global direction for FDI. Caution should be taken with the results as Canada
likely is seeing a change more to do with provincial than federal policies.

5. WHAT IS FDI?
• Foreign direct investment (FDI) is an investment made by a company or individual in one country in
business interests in another country, in the form of either establishing business operations or acquiring
business assets in the other country, such as ownership or controlling interest in a foreign company.
Foreign direct investments are distinguished from portfolio investments in which an investor merely
purchases equities of foreign-based companies. The key feature of foreign direct investment is that it is
an investment made that establishes either effective control of, or at least substantial influence over,
the decision making of a foreign business.
Source - Foreign Direct Investment (FDI) http://www.investopedia.com/terms/f/fdi.asp#ixzz4r8cf2IX9

6. FOREIGN DIRECT INVESTMENT (2019) – TOP 10 RANKING
Source - https://www.industryweek.com/the-economy/media-gallery/22027615/top-10-countries-attracting-investment?utm_source=IY+IW+Daily+Headlines+-+Morning&utm_medium=email&utm_campaign=CPS200313045&o_eid=7930I4506489J2B&rdx.ident%5Bpull%5D=omeda%7C7930I4506489J2B&oly_enc_id=7930I4506489J2B
1. USA
2. Germany
3. Canada
Despite falling one place in the Index, Canada’s score has been steadily improving in recent years. Efforts to boost investment appear to be
paying off as FDI inflows increased nearly 60 percent from last year, reversing a years-long downward trend
*** This comment does not tell the complete picture. Here is why
a) Canada lacks the port capability to expand exports - https://www.slideshare.net/paulyoungcga/what-is-up-with-merchandise-trade-for-
canada
b) Oil sector has lost allot of investment due to unfair regulations and taxes - https://www.slideshare.net/paulyoungcga/energy-market-oil-
what-is-next
c) Canada government has done little to stop blockades - https://www.ctvnews.ca/politics/majority-of-canadians-call-rail-blockades-
unacceptable-nanos-1.4844336
d) This article does not mention the work done by provincial premiers that are doing all they can to support economic growth.
e) Canada is less competitive today than it was five years ago - https://www.slideshare.net/paulyoungcga/what-is-going-on-with-canadas-
competitiveness
4. United Kingdom
5. France
6. Japan
7. China
8. Italy
9. Australia
10. Singapore

7. CANADA VS AUSTRALIA
• http://unctad.org/en/PublicationsLibrary/wir2017_en.pdf and http://www.gbm.scotiabank.com/English/bns_econ/forecast.pdf or http://pwc.blogs.com/press_room/2016/11/uk-leaps-into-top-10-of-global-tax-ranking.html
FDI FDI
GDP GDP
Corporate Tax Corporate Tax
Rank #25 Rank #16
• Australia has done a banner job of
attracting investment
• Canada continues to move to
more taxation and regulations
• Australia eliminated carbon tax
• Australia and Canada are similar as
they are both export driven and
natural resource based economies

8. AUSTRALIA FDI
Source - http://www.landmarkvietnam.com.vn/news/australia-a-top-ten-destination-for-foreign-investment.html

9. BLOG – FDI
• The reality is your post does not look at all issues with FDI. You cannot post an article unless you are
willing to discuss the details!
• Balance of payments have not improve under Trudeau - https://www150.statcan.gc.ca/n1/daily-
quotidien/190228/dq190228a-eng.htm. (Balance of payment show inflow and outflow of capital
• Despite the changes to tax rate for M&E there has been no boom for capital investment -
https://www.slideshare.net/paulyoungcga/capital-spending-and-tax-policy-canada
• Oil and Gas sector are key area as 1/3 of exports are oil gas. The new C69 will do nothing in terms of
getting NR projects off the ground - https://www.slideshare.net/paulyoungcga/gdp-canada-february-
2019
• FDI needs to review to exactly where the investments are being made. You cannot just throw up a link
without the context - https://www.fraserinstitute.org/article/look-how-much-foreign-investment-has-
fled-canada or https://www150.statcan.gc.ca/n1/daily-quotidien/180425/dq180425a-eng.htm
(Wholesale, Insurance and Finance, but not goods producing sector
• Despite all the clean technology investment there has been flee of investment -
https://business.financialpost.com/commodities/energy/lack-of-canadian-tax-competitiveness-
discourages-even-renewable-energy
• Trudeau’s policies have led to huge issues with business competitiveness -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
• Trudeau’s small business tax reforms have hinder startups -
https://www.slideshare.net/paulyoungcga/2019-election-issues-technology-sector-canada-april-2019
• Trudeau’s incoherent oil pipelines have cost the GDP billions -
https://www.slideshare.net/paulyoungcga/why-is-it-hard-to-approve-pipelines-canada-april-2019
• Trudeau GDP growth will be 1.2% for 2019 which is far cry from the 3.0% in 2017. Trudeau’s policies
are failing to support economic growth - https://www.slideshare.net/paulyoungcga/gdp-canada-
february-2019
• Trudeau said Canada should be known for its resourcefulness and not its’ NR. NR accounts for nearly
11% of GDP - https://www.slideshare.net/paulyoungcga/natural-resources-sector-policy-analysis-
canada-january-2019

10. FDI / CANADA – 2010 TO PRESENT
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190424/dq190424a-eng.htm

11. TRAINING AND DEVELOPMENT
• If you like to learn more about
trade and/or other subjects as
part of your professional
learning and development
then feel free to review my
material on
https://www.udemy.com/
(search Paul Young CPA CGA)
• These subjects address how
to fixed issues with housing
and/or systemic issues related
to economy including
government policies

12. SUMMARY
• The federal government has decided to focus more on higher tax and excessive regulations, etc. -
https://www.slideshare.net/paulyoungcga/2019-election-environmental-climate-change-canada-
analysis-and-commentary
• Canada needs to focus on capital investment into ports, rails, etc -
https://www.slideshare.net/paulyoungcga/global-trade-and-canada-issues-at-hand
• There needs to better relationship between Ottawa and the provinces. Trudeau and his government are
dictating the bad policies, like clean technology on to the provinces -
https://www.slideshare.net/paulyoungcga/clean-technology-canada-april-2019