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Canada: The Northern Trading Neighbor

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1 Canada: The Northern Trading Neighbor
IB 8680/CIS 8220 Wednesday April 26, 2006 Melloney Douce

2 Canada - Total    - Water (%)   9,984,670 km²  3,855,103 sq mi  8.92 (891,163 km²)

3 Overview Economic Overview Political Environment
Education and Health System Language and Culture IT Diffusion and Telecommunications Infrastructure ICT Industry E-business in Canada Future Prospects Conclusion Questions

4 Economic Overview 32,422,919 people live in Canada (4th Q 2005)
Unemployment rate 6.3 % (March 2006) Consumer price index (March 2006) Gross domestic product $1,090 billion (January 2006) Gross domestic product per capita $32,800 (2006 estimate) National net worth per capita $137,300 (4th Q 2005) Sources: Stats Canada and Wikipedia

5 Political Environment
Paul Harris is the Prime Minister Legislative branch: bicameral Parliament Senate (members appointed by the governor general with the advice of the prime minister) House of Commons (members elected by direct, popular vote to serve for up to five-year terms) 10 provinces and 3 territories

6 Education and Health System
Publicly funded education system Literacy: total population: 97% (1986 est.) Country has a large group of skilled workers University costs are subsidized by the government Government also subsidizes the health care system

7 Language and Culture Official languages are English and French
There are many different cultural influences in Canada Large immigrant population Hofstede MAS 52 ranks 28th Hofstede UAI  48 ranks 12-13th Hofstede PDI  39 ranks 15th Hofstede IND  80 ranks 46-47th

8 IT Diffusion and Telecommunications Infrastructure
Ranks 3rd for Multimedia Access Telephone density 57.5  PC density 17.5 TV density 65 The 2005 Information Society Index COUNTRY TOTAL COMPUTER TELECOM INTERNET SOCIAL CANADA 966 12291 131 257 349

9 ICT Industry Software Industry notes: $28.6 billion in total revenues
253,600 software workers $728 million of annual R&D 44,000 firms nation wide 22 per cent revenue growth in 73 per cent of Canadian software revenues come from foreign sources

10 ICT Industry 32,000 ICT firms 545,000 employees
more than 40 % with university degrees 9.2 percent growth between 1997 and 2003 exceeded Canada’s 3.7 percent annual GDP growth $5 billion R&D spending in 2004 70 % of ICT products manufactured in Canada are exported

11 E-business in Canada Internet country code: .ca
Internet hosts: 3,210,081 (2003) Internet Service Providers (ISPs): 760 (2000 est.) Business to Consumer sales over the Internet 2003 Statistics Canada survey 64% of Canadian households regularly used the internet

12 E-business in Canada Highest usage levels are in households with high incomes, working members, homes with children and people with higher levels of education 45 % of lower income households show internet use 3.2 million Canadians actively engaged in e-commerce Canadians spent $3 billion on the internet in 2003 & 2004 Source: Statistics Canada

13 E-business in Canada Business to Business Internet Sales
In 2004 businesses recorded $19.8 billion in B to B sales 75% of online sales are conducted between businesses Wholesalers sold $5.1 billion in goods using the internet or extranets Manufacturers sold $3.9 billion in goods using intranets, extranets, EDI or internet sites Source: Statistics Canada

14 Future Prospects The Future of IT in Canada
Canada needs to continue to focus on providing skilled IT personnel Canada continues to promote the IT industry Canada will need to continue to focus on education if it wants to remain a key player in the IT market

15 Conclusion GDP continues to grow
Canada will remain a player in the IT market Canada’s strong dollar will not deter foreign investment US firms can benefit from the skilled labor force in Canada

16 Questions ?


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