The document discusses the importance of foreign direct investment (FDI) for economic growth, highlighting the need for substantial investment to achieve high economic trajectories. It details the increase in Canadian direct investment abroad across various industries and notes that foreign direct investment in Canada also rose, predominantly in wholesale, retail trade, and manufacturing sectors. Additionally, it identifies key North American cities for FDI, emphasizing factors like access to venture capital, talent, and incubation hubs.

1. Study – Why is FDI Important to
Business?
Paul Young CPA, CGA
April 27, 2017

2. Paul Young - Bio
• CPA, CGA
• SME - Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• SME – Business Process Improvements
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Canada FDI (Inflows and Outflows for 2016)
• Top North American Cities for Foreign Direct Investment (FDI)

4. Source – AT Kearney
Source - http://www.sundaytimes.lk/110529/Columns/eco.html
There is a strong relationship between foreign investment and economic growth.
Larger inflows of foreign investments are needed for the country to achieve a
sustainable high trajectory of economic growth. There are several irrefutable
reasons for this. For the economy to grow by 7 to 8 per cent a year there is a need
to invest around 35 to 40 per cent of GDP. National savings fall far short of this
by nearly 10 per cent. Foreign borrowing and foreign investments have to meet
this investment-savings gap. This is generally recognized and successive
governments have attempted to provide various incentives to foreign investors
Why is FDI important?

5. Source – AT Kearney

6. Source – AT Kearney

7. Source – AT Kearney

8. Source – AT Kearney

9. Source – Stats Canada
Increase in Canadian direct investment
abroad concentrated in the transportation
and warehousing and utilities industries
On an industry basis, the transportation and warehousing (+31.1%), utilities
(+29.8%) and all other industry (+22.7%) categories recorded the most
significant increases in the stock of Canadian direct investment abroad in
2016. This contrasted with declines in the real estate and rental leasing (-
6.7%), mining and oil and gas extraction (-4.6%) and management (-2.9%)
industries.
The finance and insurance industry remained the primary destination for
Canadian direct investment abroad at the end of 2016 with a 36.6% share of
the total position, followed by mining and oil and gas extraction with 18.5%.

10. Foreign direct investment in Canada up in most
industries
The growth in the value of foreign direct investment in Canada was
spread among most industries in 2016, led by wholesale and retail trade
(+10.1%), manufacturing (+5.0%) and mining and oil and gas extraction
(+3.2%).
Manufacturing remained the top industry for foreign direct investment in
Canada with a 22.8% share at the end of 2016, just ahead of mining and
oil and gas extraction with 22.7%. Since the year 2000, the share of
manufacturing in the stock of foreign direct investment in Canada
has almost halved, while that of mining and oil and gas extraction
has doubled during the same period.

11. FDI to Canada

12. FDI from Canada

13. Top Cities/North America - FDI
Source - http://www.fdiintelligence.com/Locations/Americas/fDi-American-Cities-of-the-Future-2017-18-
New-York-triumphs-again

14. What makes the top Cities attractive to FDI
• Access to venture capital
• Access to talent
• Access to incubation hubs

15. Key areas of focus
• Internet of Things
• Robotics
• Self-Driving Cars
• Analytics
• eCommerce
• Cybersecurity
• Advance Materials
• Oil Refining and Production
• Clean Technology
• Aerospace