Importance of International Business
Fundamentals of International Trade
Reasons for Growth in International Business
Advantages of Doing Business In Canada
Fundamentals of International Trade
Click here for the slide show
Advantages of Doing Business in Canada
1. Lower Production and Business Costs
- according to KPMG Consulting, January 2002, Canada is the most cost-effective industrial nation in which to do business.
Canada 14.5%
UK 13.1%
Italy 11.4%
Netherlands 9.2%
France 7.8%
U.S. 0.0 % (Baseline)
%cost advantage relative to the US.
- Canadian business costs were14.5% lower than in the U.S.
- Canadian labour costs were 20-40% lower than labour costs in the U.S. (2002)
- Canada had the lowest phone rates and internet access charges in the G8 Countries.
- Construction costs were15% lower than US.
- Electricity costs were 24% less
- transportation costs were13% lower
Where is Canada today, in comparison to the US in the cost of doing business?
Research the above cost comparison and be prepared to report to class.
The G8
The world’s eight most industrialized countries are called the “global 8". They gather once a year at a “summit” to address the major economic and political issues facing the international community and their individual nations.
US.A. - Japan - Germany - Britain - France - Canada - Italy - Russia2. Human Resources
- high quality skilled labour force (due to its high level of educational achievement and the high number of 1st class business schools.
- Canada has the highest percentage of individuals of any country with at least a college or university education.
- Canada labour turnover rates are half the American rates, resulting in greater
stability for companies as well as lower overall costs.
- Highest computer literacy rate in the G8.
3. Positive Business Climate
- The “Economist” magazine ranks Canada 4th in the world with regard to its overall business climate. ( a measure of ease with which companies can run their businesses.
- we are ranked 1st in the G8 Countries in business ethical practices. (Values such as equitable labour standards, sound environment stewardship, health and safety laws, community relationships)
4. Seamless North American Market Access
- Most Canadian cities are within a 10-hour drive of 60% of the American Market.
- ½ of the North American population (200 million), lives within a 10 hour driving distance from Toronto, and more than 60% are just a two-hour flight away.
- delivery costs are affordable, orders are fulfilled quickly due to this proximity.
5. Business Infrastructure
- our set infrastructure make the country very attractive to investors and businesses interested in operating here.
- we have water and wastewater systems, water management, solid waste management, recycling stations, tourist, cultural and recreational facilities. These are all part of an in place infrastructure.
6. Quality of Life
- Canada is ranked #2, (following Netherlands) as the best place to live by the United Nations.
- issues such as life expectancy, adult literacy, education, income distribution, are used to decide the ranking.
- Canada has a world reputation as a multi cultural country that welcomes immigrants and has a humanitarian policy toward refugees.
Questions
1. What does the Government of Canada believe are the selling points for doing business in
Canada?
2. What criteria does the United Nations use to evaluate the quality of life in the countries it
assesses? What would you add to the list of criteria?
3. What are some types of infrastructure that are especially needed to support different types of business.
Fundamentals of International Trade
Reasons for Growth in International Business
Advantages of Doing Business In Canada
Fundamentals of International Trade
Click here for the slide show
Advantages of Doing Business in Canada
1. Lower Production and Business Costs
- according to KPMG Consulting, January 2002, Canada is the most cost-effective industrial nation in which to do business.
Canada 14.5%
UK 13.1%
Italy 11.4%
Netherlands 9.2%
France 7.8%
U.S. 0.0 % (Baseline)
%cost advantage relative to the US.
- Canadian business costs were14.5% lower than in the U.S.
- Canadian labour costs were 20-40% lower than labour costs in the U.S. (2002)
- Canada had the lowest phone rates and internet access charges in the G8 Countries.
- Construction costs were15% lower than US.
- Electricity costs were 24% less
- transportation costs were13% lower
Where is Canada today, in comparison to the US in the cost of doing business?
Research the above cost comparison and be prepared to report to class.
The G8
The world’s eight most industrialized countries are called the “global 8". They gather once a year at a “summit” to address the major economic and political issues facing the international community and their individual nations.
US.A. - Japan - Germany - Britain - France - Canada - Italy - Russia2. Human Resources
- high quality skilled labour force (due to its high level of educational achievement and the high number of 1st class business schools.
- Canada has the highest percentage of individuals of any country with at least a college or university education.
- Canada labour turnover rates are half the American rates, resulting in greater
stability for companies as well as lower overall costs.
- Highest computer literacy rate in the G8.
3. Positive Business Climate
- The “Economist” magazine ranks Canada 4th in the world with regard to its overall business climate. ( a measure of ease with which companies can run their businesses.
- we are ranked 1st in the G8 Countries in business ethical practices. (Values such as equitable labour standards, sound environment stewardship, health and safety laws, community relationships)
4. Seamless North American Market Access
- Most Canadian cities are within a 10-hour drive of 60% of the American Market.
- ½ of the North American population (200 million), lives within a 10 hour driving distance from Toronto, and more than 60% are just a two-hour flight away.
- delivery costs are affordable, orders are fulfilled quickly due to this proximity.
5. Business Infrastructure
- our set infrastructure make the country very attractive to investors and businesses interested in operating here.
- we have water and wastewater systems, water management, solid waste management, recycling stations, tourist, cultural and recreational facilities. These are all part of an in place infrastructure.
6. Quality of Life
- Canada is ranked #2, (following Netherlands) as the best place to live by the United Nations.
- issues such as life expectancy, adult literacy, education, income distribution, are used to decide the ranking.
- Canada has a world reputation as a multi cultural country that welcomes immigrants and has a humanitarian policy toward refugees.
Questions
1. What does the Government of Canada believe are the selling points for doing business in
Canada?
2. What criteria does the United Nations use to evaluate the quality of life in the countries it
assesses? What would you add to the list of criteria?
3. What are some types of infrastructure that are especially needed to support different types of business.