Unit 1 Overview – CANADA’S ADVANTAGE Chapter 9 – Canada’s Competitive Advantage Culminating Activity for Unit 1 – Unit Test Thursday, October 1st Chapter 9 – Foreign Investment in Canada

Agenda  Take up Cirque Questions  Share one Canadian Company with the class.  Lesson Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Competitive Edge (advantage ) FOREIGN INVESTMENT Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Industries: Aerospace Shipping Chemical Logistics Banking Cultural Technology

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Attracting Foreign Investment Countries seek foreign investment because it:  Increases economic activity  Brings new ______________  Improves productivity  Forces domestic companies to become more ___________________ On the downside, foreign investment also:  Detracts from a country’s _____________  The profits earned by foreign-owned companies do not stay in the host country + -

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Attracting Foreign Investment The federal and provincial (and in some cases, municipal) governments have programs to attract foreign investment. Canada is attractive to foreign investors because it offers :  A supportive business environment  A ___________ to the world  An infrastructure advantage  Outstanding ___________________  A great place to live

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Supportive Business Environment  Canada is ranked highly as an easy place to conduct and set up a business (lower level of bureaucracy / red tape)  Also offers excellent trade and investment opportunities  Strong ties to Asia, Europe, and the rest of North America through imports and exports  ____________ _________________ with low interest, inflation, and unemployment rates  Low ____________tax rates and offers tax ______________

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Gateway to the World  _____ out of 20 of Canada’s largest cities are within 90 min of the U.S. border  NAFTA has created opportunities for businesses located in North America  Canada’s connections to Asia (through proximity, immigration links, and APEC) allow access to Asia’s growing economies (especially India and China) Used under license from Shutterstock, Inc

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Infrastructure Advantage  Canada has more than _________________________  Seaway is world’s longest inland waterway, allowing goods to travel easily from the Atlantic Ocean to the middle of North America  CP and CN Railways have a combined rail system of 53,000 kms  The __________________ is the world’s longest highway, spanning all ten provinces and connecting to eighteen border crossings  _____________________________, an agreement between the Canadian and U.S. governments signed in 2001, facilitates the cross-border flow of travellers and goods, and co-ordinates enforcement efforts in the two countries

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Outstanding Employees  Canada spends more (as a percentage of GDP) on education than any other country  Has most highly ____________ workforce in the world  Home to excellent _____________schools Cultural Diversity  Attracts highly educated immigrants  Liberal immigration policies – 90% continue their education in Canada  One of the most multicultural countries in the world, with employees that speak many languages and have an ____________________________________________

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. A Great Place to Live In 2009, the United Nations Human Development Index rated Canada as the __________________ in which to live. The ____________________________(HDI) is a statistic produced by the United Nations and used to rank countries, which measures three elements:  __________(life expectancy at birth)  _____________(literacy rate and school enrolment)  standard of living (GDP per capita) rankings

HDI  The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. It is used to distinguish whether the country is a ____________, a ____________or _______________________, and also to measure the impact of economic policies on quality of life.life expectancy literacyeducationstandards of living countries Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Homework  Think About It Questions p. 259 & p. 269 Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Canada’s Productivity _______________ The amount of output with respect to the amount of input. Input includes capital raw materials, labour, and innovation. Global factors influencing PRODUCTIVITY: Trade ______________ ____________fluctuation Commodity prices Political ___________

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Canada’s Productivity – IMPROVEMENTS? Canada’s productivity is __________________________. Canadian companies could improve their productivity by:  Increasing investment in machinery and equipment, especially communication and information technology  _______________more foreign investment  Expanding Canadian investment in foreign countries especially in ______  __________________, which includes downsizing and moving production to lower-cost countries  Fostering corporate innovation by increasing spending on science and technology  Initiating government programs in science and technology continued on the next page

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Canada’s Productivity  Increasing the knowledge economy by graduating more Canadians in the fields of science, ___________, computer science, and ____________  Encouraging employers to increase and improve their training programs  Increasing post-secondary ____________  Creating ___________programs to help immigrants become qualified in their fields of expertise

Chapter 9: CANADA AND INTERNATIONAL BUSINESS Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. Canada’s Productivity The Changing Canadian Workplace  Dramatic changes because of globalization  Workers will likely have many jobs, outside of the city they grew up in and perhaps outside of Canada  More ____________employees  Employees need strong technical and interpersonal skills  Employers can hire people located anywhere in the world because of _______________ —the use of computers and other technology to work from home Used under license from Shutterstock, Inc