International Management and Business Administration THEARTOFBEINGALOCLWORLDWIDE

International Management and Business Administration InterGest THE ART OF BEING LOCAL WORLDWIDE Canada – a brief introduction to today‘s business environment

International Management and Business Administration Barbara William Topics 1.Recent population trends, GNP 2.Import/export by comodity groupings 3.Imports by selected countries 4.The Canadian banking environemnt 5.Taxation 6.Workforce 7.Gateway to the world Canadas Business Environment

International Management and Business Administration Barbara William Recent Population, GNP and Trade Trends Canadian Population Trends to 2056 (in millions): 1946: 12.3 Today (2012): 34.5 ; Expected 2056: 42.4 Most recent and all later increases due to immigration. Overall populations growth approximately 1% per year. GDP 2010: $1.324 tril. Trend over the last few years generally better than G8 members. Exports as a proportion of GNP: 28.2% (based on 2010 data)

International Management and Business Administration Barbara William Commodity Grouping Exports (incl. re-exports) ImportsTrade Balances Agricultural Products (not end-products) Positive for Canada Food Products Negative Mineral Products Highly positive Semi-finished Products Neutral Finished Products 202.7*282.7*Negative TOTAL IMPORTS $447.5$446.0 Notes: “*” $ bil. of the finished products exported are highly manufactured end products including machinery, cars and other transportation products and parts, optical product and miscellaneous manufactured articles. Of the imported finished products $206.4 bil. are highly manufactured end products. Canadian Export and Import by Commodity Groupings (2011, in bil. $)

International Management and Business Administration Barbara William Commodity Grouping USAChinaJapanGermany Agricultural Products (not end-products) Food Products Mineral Products Semi-finished Products 42.8** Finished Products 128.6*39.0*12.3*8.5 TOTAL IMPORTS$203.4$44.5$13.4$11.3 Note: “*” In the row below are shown the values and % for highly manufactured products - machinery, cars and transportation products, optical and miscellaneous products (and include for “**” also chemical products - USA and Germany) of total” Imports”. $ $19.0 (57.5%) $27.3 (61.3%) $11.4 (85.1%) $7.4 + $2.0 (83.5%) Canadian Imports from selected Countries (2010, $ bil.)

International Management and Business Administration Barbara William Canadas banks ranked #1 by the World Economic Forum for most sound banks in the world for the 4 th year During financial crisis, no CDN bank failed and required no bail outs 5 main banks with locations across Canada Canadian Banking Environment

International Management and Business Administration Barbara William Companies are taxed federally and provincially on total income Combined rate is 26% which is below most G7 countries Sales tax – GST/HST(VAT): GST – Federal rate – 5% or, HST – combination of Federal rate + Provincial rate – varies by province – Ontario 13% Provinces not in HST program charge sales tax but not allowed as tax credit Canadian Taxation

International Management and Business Administration Barbara William Highly educated, flexible and muticultural Over 200 languages spoken Minimum wage in Canada – approximately $10/hour Cdn All Canadians pay income tax and contribute to Canada Pension Plan and Employment Insurance Employers must also contribute: to Canada Pension plan (CPP) equal to employee portion Employment insurance (EI) equal to 1.4 times employee portion Workforce

International Management and Business Administration Barbara William Fast reliable access to North American markets Canada shares a border and largest, stable commercial relationship with United States 17 of Canadas 20 largest cities are 90 minutes from Canada/US Border More than US $ 1.5 billion worth of goods crosses Canada - US border each day Sailing times from deep water ports up to 2 days shorter than from other North American ports Trade agreements with many countries including NAFTA Currently negotiating with European Union for a free trade agreement Gateway to the world

International Management and Business Administration Barbara William InterGest Canada It would be our pleasure to meet you at Global Connect!