...country and comparative advantages. It mostly focused on U.S and China between Canada’s relationships. The United States and China are the largest economic market in the world. Also these countries are Canada’s most favor relationship in the international market. In 2009, the international financial crisis became a huge issue of the world. Due to this financial crisis U.S got a lot of damage. It made also Canada’s economic downturn, because of strong reliant on U.S. Over view, Canada has to be a stronger country with more powers, in order to maintain a good relationship with many other countries to help each other and have more successful economic growth. GLOBAL ECONOMIV DOWNTURN FROM THE FINANCIAL CRISIS In 2009, there was a global economic downturn from the financial crisis. Because of this, many countries got a lot of money damages. This put the world economic in most hard situation. Most of the people in the world spent such a hard time in this area. The main sources of this happened from some countries which were largest markets in the world such as the United State and other developed countries. From this economic downturn many developed countries reduced imports from other countries. Therefore a lot of export countries got more economic downturn. The one of main reason of the financial crisis was that the United State housing price decline in mortgage growth was riding rapidly down the financial system in the world fell into a more global competition. In other...
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...PART-I US-Canada: Since many years, US-Canada trade has been the cornerstone for Canada’s economic development. Canada began its trade with the US in 1920s when rapid urbanization in the US led to huge demand in wood and other forestry products. In the 1920s and 1930s, pulp production increased steadily with over 90% of the produce being exported to the US. In 1925, the opening of the Panama Canal increased the exports of lumber from British Columbia to eastern U.S. markets, which dramatically increased the netbacks received for lumber produced in British Columbia (Statistics, Canada, 2012). Post world war, rapid expansion in the US industrial capacity was accompanied with rapid growth in the Canadian economy as well. Growth in the demand for newspapers led to the growth of pulp and paper industry. By1950, over half of the world’s newsprint was supplied by Canada. By 1954, pulp and paper exports accounted for 24% of Canada’s total exports, of which, 33% of those exports were to the United States (Statistics, Canada, 2012). Post 1960, the new staple in the resource landscape for Canada was Energy. Until this time, though some local sources were available on the Prairies and in Nova Scotia, Canada had relied on coal imports. In 1957, there was a major oil discovery in Alberta at Leduc, which lead to a major and dramatic expansion of crude oil and natural gas industry, the effects of which are still evident till date. The North American Free Trade Agreement (NAFTA) removed most...
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...information and communications technology and widespread reductions in international barriers to trade and investment. International integration is advancing rapidly, reflecting in part the development of global production chains and the rapid growth of emerging market economies. As a result of the forces of integration, international competition has become more fierce and firms are under increasing pressure to cut costs and differentiate their products to survive. Canada’s economy has numerous linkages beyond its borders, particularly with the United States. The future improvement of Canadians’ standard of living will depend in large part on foreign investment in Canada and the ability of Canadians to invest abroad. In this regard, a thriving financial sector will be a key component of our success. Canada has a small share of the global capital market. Thus, to be competitive, the Canadian capital market must be efficient and offer a low cost of capital. As much as possible, the policies and institutions that govern the Canadian financial sector should be harmonized to international standards. Made-in-Canada policies risk dampening or distorting international investment flows and should exist only where there is a demonstrable domestic imperative. Economists’ understanding of the role of financial systems as a driver of long-term economic growth has evolved considerably in recent years. Financial systems are recognized to...
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...Canadian company * Domestic Market: the customers of a business who are in the same country as the business * Foreign Market: the customers of a business who are in a different country as the business * 5 Ways for businesses to must be international * MUST own retailers or distributors in another country * MUST own manufacturing plant in another country * MUST export to other countries * MUST import from others * MUST invest in other country businesses * Trading Partner: Canada businesses make relationship with businesses in another country, so they would be Canada’s trading partner. History of Canadian Trade * European Trade * 1700s – trades grew fast after permanent Canadian settlement * Demand for raw materials (beaver pelts, fish, lumber) * Europe manufactured Canada’s raw materials * After 7 years war, England and Canada made trade agreements (help war torn France) * near-port cities used to facilitate trade import/exports * US trade * Late 1700s, US independence and self reliant * Steam engine 1775 James Watt: revolutionized manufacturing and transporting * Cotton Gin by...
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...that is locked up in snow and ice,” (Ehewnman, 2003). Water is in conflict between countries as the quality of clean water per person is steadily decreasing. The Great Lakes, the biggest body of water in North America, and supplies water to Canada and the U.S. and its rivers are also used for Hydro powered damns. This paper examines the Great Lakes water conflicts between Canada and the U.S., by observing the drinkable water that can be supplied. While also observing the legalities and regulations of who has the rights to Canada’s massive water supply. Even if the water is in Canada’s country, they may not have complete control over it. Many solutions from one side, such as water diversion, have created concerns for the other. Due to Canada’s high water supply from other lakes and river systems, they do not as dependent on the Great Lakes as much as the U.S. is, but the major concern is will both sides lower the water levels to the point where the economies for hydropower generator dams and transportation are no longer able to function properly. The Great Lakes Water Supply Statistics The Great Lakes consists of five individual lakes and “individually these lakes rank among the 15 largest in the world,” (Gwinn, B, &...
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...Macroeconomic Analysis: Project II Class: ECON545 4/12/2011 Introduction to Situation The paper analyzes and summarizes how the automotive industry is impacted by the macro economy. In helping my friend Rick expand his small manufacturing plant that produces parts for the auto industry, I’m going to identify a brief history of the automotive industry, how it impacts the GDP, the unemployment rate, and the inflation rate as measured by the Consumer Price Index (CPI). The supply and demand of the automotive industry as well as the profits derived from the sector are clearly impacting by then macroeconomic policies. The industry’s history demonstrates the trends it follows in the business cycle and how economic indicators have impacted the performance of the industry over the years. The measure of production, interest rates, real GDP, automotive sales and inflation and unemployment are some of the most compelling instruments that can be used to assess the state of the automotive industry. Business Cycles The U.S automotive industry saw a steady expansion from its inception until 1978 in which where production reached its all-time peak. The industry showed a small contraction and a quick recovery leading to its peak between 1972 and 1976. In the early 1980 there was a big drop in production units and the industry fell into its first true recession. The industry recovered in the mid 80s peaking in 1988, but never reached its previous high before falling into...
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...Report of the Joint Study on the Possibility of a Canada-Japan Economic Partnership Agreement March 2012 Contents Introduction and Purpose of the Study ................................................................................................ 2 Executive Summary ............................................................................................................................. 3 Chapter 1: Overview of Bilateral Economic Relations ....................................................................... 5 1.1 1.2 1.3 1.4 Overview............................................................................................................................... 5 Trends in Bilateral Trade in Goods ...................................................................................... 7 Trends in Bilateral Trade in Services ................................................................................... 9 Trends in Foreign Direct Investment ................................................................................. 10 Chapter 2: Analysis of the Economic Effects from a Canada-Japan Economic Partnership Agreement .......................................................................................................................................... 12 Chapter 3: Analysis of Major Areas of an Economic Partnership Agreement ................................. 14 3.1 Market Access (including Rules of Origin) .......................................................
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...nation, but has instead been used to project our values on other nations (4 – 5). The goal of this was sold to the public as a way to have Canada look stronger in the eyes of business people and other nations alike, while also promoting its cultural exports (4). While there were some arguments over the technical side of this plan, in principle, it seemed to make a lot of sense. Realistically though, it made very little difference, as the implementation of this third pillar took place at the same time as former Prime Minister Paul Martin decided to slash funding for Canada’s International Cultural Affairs and Academic Relations (5). This decision reflects the idea that you should not listen to what the government is saying to see their interests, but instead watch where they spend their money (5). While the importance of displaying our culture internationally was not necessarily a bad thing, it has never been Canada’s first priority. The next issue raised is concerning the public’s view of their foreign relations policy. Currently, the majority of Canadians feel as though they should be based on Canadian values and culture (7). The problem with this, is that while Canadians may value or desire the same things such as, safety, and economic wellbeing, they do not agree on the method as to acquire them (8). As it is a liberal democratic nation, a liberal approach is often taken. This will follow the rules of democracy, individual freedoms, and The Rule of Law (9). The hypocrisy of...
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...impact on economic, which in turn result in a substantial decline in demand for air travel and air cargo. Every penny increase in the price of jet fuel costs the airline industry $180 million a year. For Air Canada, this change would decrease their profitability and company performance. SAS Group reported that the global economic climate is weak, Jet-fuel prices and capacity continue increasing in next few years. High fuel prices presented a significant challenge for the entire aviation industry. Therefore, we consider fuel price is a threat for Air Canada doing their business. Retrieved from http://saraalgoe.hubpages.com/hub/rise-in-fuel-prices-airline-industry http://www.cisionwire.com/sas/r/sas-group-interim-report-january-march-2012,c9254790 2. GDP: According to Trading Economics, the Gross Domestic Product (GDP) in Canada expanded 0.4 percent in the fourth quarter of 2011 over the previous quarter. Historically, from 1961 until 2011, Canada’s GDP Growth Rate averaged 0.8 percent reaching an all-time high of 3.3 percent in December of 1963 and a record low of -1.8 percent in March of 2009. These data represents that Canada's economy situation is healthy and the country becomes wealthier. This will lead more frequent trades in Canada. And citizens can have more money to travel by taking airplanes. As a result, GDP growth is an opportunity for Air Canada. Retrieved from...
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...Megaregions: The Importance of Place (HBR : March 2008) by Richard Florida Nations have long been considered the fundamental economic units of the world, but that distinction no longer holds true. Today, the natural units – and engines – of the global economy are megaregions, cities and suburbs in powerful conurbations, at times spanning national borders, forming vast swaths of trade, transport, innovation, and talent. The world economy is organized around a few dozen megaregions – areas like the Boston-New York-Washington corridor, or the Shanghai-Nanjing-Hangzhou triangle, or the span stretching from London through Leeds, Manchester, Liverpool, and into Birmingham – which account for the bulk of the globe’s economic activity and innovation. There is no single, comprehensive source for gauging the economic production of the world’s megaregions, but a rough proxy is available. Tim Gulden, a researcher at the University of Maryland’s Center for International and Security Studies, used satellite images of the world at night to identify contiguous lighted regions. (Nighttime illumination indicates energy consumption, which corresponds to economic activity.) He then calibrated the light data against existing estimates of national and regional economic output and was able to derive dollar estimates of annual economic productivity (the total value of goods and services produced) for every mega-region. I call this measure the light-based regional product, or LRP. Gulden argues that a...
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...POLITICAL “Penny Thomas an MBA graduate acquired the ownership rights to Marble Slab Creamery franchise located in Ontario, Canada” (Zatsman & Grasby, 2009, p. 1). “NexCen Brands Inc. owned the Marble Slab but played small role in the daily operations of their locations” (p. 2). In an ice cream industry, any changes in regulatory for foods such as diary could force changes in this type of business. But since “assistance is given in terms of financing, real estate and marketing, and because the store is backed up by a large well-established company” (p. 2), her franchise have the ability and privilege of financial risk of any financial disaster being reduced and the consequences of being not as much severe. This acts as a safety net for Thomas’ store, which is helpful and the store can feel more secure. ECONOMICAL When global economic strike, for instance in U.S, it affects the economic outlook and result to people spending less. A recession in United States “raises fear on how the Canadian economy will be affected later with the decline in Canadian exports and commodity prices (Zatsman & Grasby, 2009, p. 3)”, and this could possibly hit the country’s economy. This instability increases concerns for the business, might hurt in the future because if recession does hit, less consumers will be able to afford the “high quality, super-premium” (p. 1) of Marble Slab so sales will decline. Also the business deals with “dairy products, commodity products such as cocoa and sugar...
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...Chapter 2: International Trade Policy and Trade Institutions 1 Global Marketing: Foreign Entry, Market Development & Strategy Implementation First Canadian Edition (Czinkota/Ronkainen/Farrell/McTavish) Copyright © 2009 by Nelson Education Limited Evolution of International Trade 2 Mercantilism (1500 – 1750) Import raw materials from ‘colonies’ at low cost Positive balance of trade Exports subsidized Imports taxed Create positive balance of trade Copyright © 2009 by Nelson Education Limited Evolution of International Trade 3 Theory of Absolute Advantage Country specializes only in products they can produce efficiently Natural resources Fewest units of labour to produce Import all other products Encourages trading between countries Theory of Comparative Advantage Does not require Absolute Advantage to trade Trade to maximize labour effectiveness for the country Copyright © 2009 by Nelson Education Limited Evolution of International Trade 4 Heckscher-Ohlin Model Extends comparative advantage Factors that vary by country Labour Capital Trading based on price differences between countries Product Cycle Theory Stage 1 – innovative product, home country develops and sells domestically Stage 2 – begin export to other similar countries Stage 3 – manufacture in developing countries, sell everywhere Copyright © 2009 by Nelson Education Limited Evolution of International...
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...Business Foundations Part 1: Human resource management 1. Identify three human resource problems that are evident at the Last Resort Retirement Community? Each problem should be explained in 100 words or less. Approaches to Leadership is an evident Human Resource problem, the CEO of Last Resort’s Community’s participative management style (free-rein style) differed from the newly hired Director Gersick’s autocratic management style. Kerrigan delegated the decision – making authority to levels of management at various points below the top level. This pattern of decentralized organization decision – making was effective when his past Director of Nursing Martha Kane was acting as the informal leader in the nursing home her strong problem solving skill was effective in maintaining morale and professionalism amongst the departments. However, once Martha had left the organization the decision making hierarchy was unclear and with the introduction of a new director along with her centralized decision making philosophy chaos and confusion was created amongst the departments. The current organization chart does not provide a clear understanding the authority level. This was demonstrated during a discussing between Kerrigan and Gersick regarding the performance of a physical therapist. Employee Behaviour is one of the Human resources problems that is evident at the Last Resort, the negative performance behaviours of the department heads and Managers have also resulted in...
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...significant role in the development of Canada. Most socio-economic achievements in Canada’s history have been closely related to natural resources. While activities such as fishing and agriculture have traditionally paved the way, perhaps none has contributed to Canada’s economic prosperity like the mining industry. As the sector continues to grow, so does Canada’s reputation as one of the world’s leading mining nations. Canada is one of the world’s top producers of major commodities such as uranium, nickel, cobalt, and more. With a pullback in performance over the past years, I expect the industry to rebound, as economic growth in China and the United States will increase resource demand. Despite the positive outlook, this is still a highly controversial industry. Many key drawbacks such as pollution, low employment, and high level of risk have made the mining world a highly criticized industry. The sector plays a crucial role in the economic, social and environmental stability of the country, making it a focal point for the government. Both industry participants and the government must work together to improve and stabilize the mining industry for British Columbia. This report is divided into 3 sections: • Section I outlines the history of the industry, leading up to the present. • Section II, which will provide an overview of the current state of British Columbia’s mining industry, includes the industry’s size, major players, and contribution to the economy. • Section...
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...Many hands were responsible in shaping Canada into what it is today. One significant political figure who contributed in this was Pierre Trudeau. Winning a majority government with his Liberals, Trudeau became the 15th Prime Minister of Canada in 1968 (Whitaker 13). Effectively taking advantage of his authority, he helped strengthen Canada as a country, all the while assuring its unity as a nation. He maintained stability between French and English speaking Canadians and recognized Canada's stand globally as an independent country, as he continued to protect the rights and freedoms of all his citizens. All these aspects establish Pierre Trudeau as a positive defining leader who marked his stand in Canadian history. Prime Minister Pierre Trudeau...
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