Introduction
Economic and Political Point of View
Export and manufacturing businesses are fragile, and yet they are very important to the recovery of Canada’s economy. Unemployment rate is going up, and the government is encouraging business investment in technical areas (Hale, 2006). Such areas include equipment and machinery to help create job opportunities for Canadians. It views foreign investment as an opportunity for increased exports and job creation. These are the main issues of concern in Canada (Jackson, 2012). Our company is set to benefit because the Canada government is ready to support such investment. With oil and gas being major products in Canada, our machinery products are best suited because of transportation and distribution required.
Foreign investment in Canada has been encouraged since the 19th century. This has advanced such that a foreigner who invests at least $150 000 in Canada for at least three years can qualify for Canadian citizenship (Taylor & Laforest, 1993). This is an incentive for the expansion of the company because opportunities for business growth are available. However, Canada has policies and measures meant to protect its domestic producers from competition by foreign investors (Holden, 2007). Our Company enjoys protection from these barriers since it originates from a country integrated in the North American economic system. In this case, our company shall be regarded as other local investors.
Canada is advanced in terms of industrialization, but its domestic contribution to the economy is lacking. This is because they do not specialize in large scale production within the manufacturing industry. This makes Canada fail to compete at the same level with other countries (Co Staff, 2012). This weakness provides an opportunity for our company to enter the Canadian market and compete effectively. Public ownership of firms was common in Canada, but this is slowly changing with private ownership increasing. Thus, for our company, this is the best time to enter the Canadian market and be part of the innovative changes occurring in the country.
Business Growth Point of View
The gas and oil business sectors are currently the most concentrated areas of interest for investors in Canada. However, the government is discouraging them because they require cuts on tax to invest. It supports areas that will help strengthen economies at regional level by targeting international markets. With our company supplying its products both in Canada and North America, we are bound to grow in sales volumes once we become established in Canada. This also means demand for our products will be high. This is because domestic production does not concentrate on the products we offer. It views businesses as organizations that create jobs and promote skills, ideas, and experience for the youth. Canada plans to enter into free trade arrangements with North American countries. This could be a major boost for our company because it will directly benefit in case of such agreements.
Canada is also campaigning on attracting immigrants as a strategy for future economic growth. This is in favor of our company because entry into the market will be simplified. Expenditure in Canada has been lowered to enable economic recovery. For our company, the products are integrated with oil and gas production. This indicates that it is a constant factor that cannot be eliminated from the market. Therefore, the changes made in the spending patterns do not affect our company considering that Canada’s economic giants are in the oil and gas sector.
References List
Co Staff, (2012). Optimism about Canadian Economy Rose Sharply In Q1 2012. Web.
Holden, M. (2007). The Foreign Direct Investment Review Process in Canada and Other Countries. Web.
Hale, G.E. (2006). Uneasy partnership: The politics of business and government in Canada. Peterborough, Ont. [u.a.: Broadview Press.
Jackson, A. (2012). Ensuring Canada’s Economic Recovery. Web.
Taylor, C. & Laforest, G. (1993). Reconciling the solitudes: Essays on Canadian federalism and nationalism. Montreal [Que.: McGill-Queen’s University Press.