'Historically the country has been influenced by immigrants from two European countries which are France and Britain but the countries practices and celebrates more of the British heritage. However, most of the Canada provinces usually speak French and has been a self - governing entity since 1867.'
Background of Canada.
Canada is a nation in the northern front of the North American continent. On the south, the country borders the United States of America and they are tow countries which have the extensive national border. The country is sparsely populated, and it has a population of approximately 35.15 million people who are congested in large and medium cities distributed all over the country. Historically the country has been influenced by immigrants from two European countries which are France and Britain but the countries practices and celebrates more of the British heritage. However, most of the Canada provinces usually speak French and has been a self - governing entity since 1867. Canadians usually enjoy high standards of living, with the country having high scores on respect for human rights, corruption, and economic freedom.
The political economy of Canada.
The history of political economy in Canada is one aspect which has metamorphosized over the years, having been dominated by the left wing nationalist tradition of political economy. It was billed as been the obstacle for the development of socialist class struggle in Canada. None the less, the economy evolved to a 1960s advanced capitalist political economy, which had been sidelined as being foreign dominated (Ayres, 2004). Currently, the Canadian economy is a combination of public and private enterprise elements. Many aspects of the enterprise were adopted after the end of World War II in 1945, where extensive social welfare had a redress on the social and economic inequalities.
The competitiveness of Canadian economy has been sustained over time by institutions having solid foundations for a market system which is open. The judiciary which is independent provides a competent cover for the rights of property and the rule of law. The economy is thus open for global commerce having a high regulatory efficiency (Ayres, 2004). None the less, 89% of the Canadian land is state owned, and the rest of the provide rights have their rights well protected by the state machinery. Contract enforcement is usually secure, and it is highly unusual to have it in appropriated (Ayres, 2004). Canada is one of the countries which are known for a clean government, and its judiciary has a reputation for an impeccable transparency and independence which makes the country a haven for global investors.
The transparent regulatory frameworks in the country facilitate an ample environment for commercial activity, which allows for a dynamic and efficient business operation. (Panos, 2015), observes that the flexible labor regulations have made it necessary for the growth of employment rates in the country. For example, in 2016 the Quebec government and the Bombardier Aerospace Company of Canada, had an agreement of a $1 billion rescue package. However, the federal government of Canada has not approved the bailout.
In Canada’s economy, trade is an essential aspect of the economy, where the value of imports and exports equals to the 65% of the country’s GDP. The tariff which is applied is an average of 0.8 % which makes it favorable for the operation of trade (Panos, 2015). There foreign investors in the country include telecommunication and aviation whose trade is usually capped by the government. The banking sector is very stable, and sound, where there are wide ranges of non-banking companies in the country usually operate under a business environment which is prudent, with well-developed market securities. The comparative management of public finance is very prudent, having spread to new front over the years. (Panos, 2015), argues that the policy of the government is much inclined to the increasing of spending and the distribution of the spectrum of taxation. A tax rate of 33% is the topmost brackets targeting an individual entity with the strategy to cancel the reduction in tax rates for small businesses.
Ethical issues to consider doing business in Canada.
One of the fundamental issues in business is ethics which is essential for business practices which are successful. The meaning of operating ethically is the practice of doing business and other manners of the economy in a country in agreement with the laws and the spirit of that particular country (Borzykowski, 2014). In Canada, the value of ethical business operations in the country to reflect their spirit and value of nationhood. The ethics to consider ethical and legal issues, human rights and the environment. To start with, Canada is a member of the Organization for Economic Co-operation and Development (OECD), where the state is a signatory for the tackling of corruption done by foreign officials. Corruption in Canada is unacceptable as it is based on the values embedded in the (OECD) convention where is has safeguard and regulations which require people to sign an anti-corruption agreement before starting a business in the country (Scapin, 2016). This also includes the process and procedures in which the state employs to protect itself from the ills of corruption and what would happen to anyone who would be found culpable for such crimes.
The county values the aspect of human rights where the country has safeguards and implements policies which are in line with the international conventions of Human Rights. Therefore, the operations of any business must adhere to the policies of the government of Canada. The country has screening mechanisms, project monitoring and signing of due diligence (Scapin, 2016). This is to ensure that the companies which do business in the country adhere to their operations to international standards which are universally acceptable.
On matters of employment, all companies doing business in Canada must not only ensure they observe the universally accepted Human Rights but also fulfill the legal requirements of the country (Borzykowski, 2014). When hiring of workers in the country, one has to consider the pay levels acceptable in the country and the necessary working conditions necessary for humane conditions in a company. (Borzykowski, 2014) is of the opinion that for one to establish a business in the country, one must ensure that the company guarantees the workers will have a living wage, ensure protection and safety of the workers and establishment of a reasonable working number of hours.
Theory of international trade.
The theory of international trade which can apply to Canada is the one of comparative advantage. This will be to give the advantage of the country to have the necessary advantage in exporting commodities to another country. The theory fits for the country which includes resource endowments, technological superiority, commercial policies and demand patterns. On matters of technological superiority is because Canada is one of the countries in the country which has a well -developed technology (Krugman, and Obstfeld, 2003). The Sustainable Development Technology of Canada (CDTC) is an entity which supports the development of clean technologies which are efficient and sustainable. Having a stable economy, Canada is, therefore, capable of establishing well-structured and efficient manufacturing industries, transport systems, proper means of production in the agricultural sector and modern forms of storage and preservation of goods and commodities (Hoffman,2000).
The other aspect of comparative advantage theory is resource endowment of Canada. This is because Canada is one country which endowed with rich and abundant natural resources. It is applicable because Canada can use those resources more intensively (Hoffman, 2000). Given an example of the fact that newsprint uses more resources in Canada than textiles, and one the other side, textiles use more labor compared to newsprint. This would mean that Canada will have relatively cheaper natural resources than the country which specializes in textiles, making the comparative advantage theory more appropriate to resources in which Canada has for exploitation.
The other factor is on the commercial policies which are both national and international. Canada for this matter has sound policies with regards to export promotion, training and education, and infrastructure. The country had efficient and reasonable industrial policies which include tax preferences, production subsidies, anti –trust policies and restricted tendering of government tenders. Also, (Krugman, and Obstfeld,2003) argue that the commercial policies which have been used to propagate voluntary export restraints, tariffs and quotas, local content rules and import licensing are all advantageous to the domestic import industries which are in competition. For example, the Auto- Pact of 1965 between the United States and Canada is an example of an agreement which necessitated the influencing of trade and production through national policies which target individual industries.
Regional economic integration.
The regional economic integration entity is one Free Trade Agreement (FTA), which was an agreement between the United States and Canada in 1987. The objective of the agreement was to remove the restrictions on trade which was aimed at spanning for ten years. (González, 2014), argues that the objectives, in particular, included the elimination of trade barriers between the two countries and facilitated ample environments in both countries which would see fair competition in all areas of trade between the two countries. It also aimed at liberalizing the aspects of conditions for investment in both countries and has effective procedures or doing trade in the both countries of free trade areas.
Today, the exact effects of the FTA are hard to determine, however, when the trade agreement was ratified, trade in between the countries increased rapidly. Throughout the latter part of the 20th century, trade exports consisted of nearly 25% of the Canadian GDP and by 2000; they had reached around 50% (González, 2014). Economic reports of 2014 indicated that due to the trade agreement, the country's yearly profit was at the margin of 1.2 %. The real value of the trade agreement between the two countries is usually analyzed through the premises of the conditions of the US dollar and the Canadian dollar (González, 2014). For example, In 1990-91, the Canadian dollar rose sharply against the US dollar making Canadian manufactured goods to the Americans more expensive to buy while making the goods of the American more cheaper for the Canadians to buy.
In the 1990s, (González, 2014) observes that there was the phenomenon of the cross-border shopping which was highly practiced by the Canadians who would make daily trips to the American country for shopping in taking advantage of the free trade tariff which was affected by the trade agreement and provided a mini boom for the towns which received the cross-border shoppers. The FTA was regarded as to have been the cause of the loss of many Canadian jobs, especially in the Ontario manufacturing section in the 90's years of recession. However, (González, 2014) denotes that the trade agreement has failed to put liberalization in some sectors such as softwood lumber dispute which is ongoing in Canada and the United States. While in as much as the agreement has controversial issues between the two countries, it is no longer a central matter of debate in Canadian politics despite it being still in implementation.
Issues of management in Canada.
There are management issues in Canada which are held in high regard by all stakeholders. One of them is the legal frameworks which come with the employment of the main public issues of administration of function in public and private agencies in Canada. The Canadian labor code (CLC), applies to those employees who are in the private sector while all Canadian employees whether in the private and the public sector are controlled by provincial labor statutes (Howlett, & Migone,2014). The employment sector in Canada is that the past time base of employment terms is reflected by a small section of the Canadian total employed workforce. The age structure in the labor force is well reflected with the desired age brackets by the regulators, with employees who are 50 years and older are 35.6% of 2012 is closer to the (OECD) bracket of 34.5% in 2009. The representation of women in the labor force is relatively high accounting for 54.8% in 2012 (Howlett, & Migone, 2014).
Canada has delegated human resource practices to ministries which work in line with the OECD. Many of the issues of the HRM are concerned with matters of regulations by the ministries, and the appraisal of performances is usually delegated to the teams or units. The HRM practices are one of the highest in all countries of OECD. The accountability of management is fully linked to the strategic objectives. Targets of HRMs are considered performance and regular assessment of all stakeholders. (Howlett, & Migone, 2014), argues that the frameworks put in place require all entities to report on issues in a full range manner. Union in the country are closely linked to the many issues of HRM in Canada but do not receive state funding, with the general aspects of work and remuneration conditions are determined through collective bargaining. Having consultations with the unions is usually voluntary, when it comes to matter to do with employment frameworks and policies or tools of new management.
Marketing issues in Canada.
The people of Canada when it comes to buying have their own preferences which are different from other people in other countries. The Canadian consumers appreciate retailers or companies which are sensitive to prices, and because they are people who avoid price hugging, it is prudent to charge reasonable prices for one's goods and services. To gain fanatical customer loyalty, one is expected to implement a price which is reasonable, yet competitive and profitable (Hutt, & Walker, 2015). One should also take into consideration the influence which comes with newcomers. There is the increasing number of new immigrants who will seek to have permanent residence in the country. Therefore, one has to take time and understand how the immigrants will behave in the marketplace and the preference which they exhibit when it comes to purchasing of goods and services.
The other factor is the baby boomers of Canada, where the approximately is a third of the population of Canada were born between 1945 and 1965. That is approximately 10 million Canadian citizens who could pose a major target market for goods and services. The baby boomers will be target market because they are now at the age where money is spent on retirement savings, luxury items, leisure and trips, wellness and health products and services (Hutt, & Walker, 2015). One thing of importance is to understand that the Canadians, despite being tech-savvy, usually do not subscribe to online buying and they prefer to pay for their goods and services using plastic cash.
Issues to consider for a United States investor in Canada.
One of the issues which will face a United States business which is seeking expansion to Canada is to whether the business will be filed under a matter of a separate legal entity or an incorporated branch. It is a general rule that anyone who is operating a business in Canada must be liable to the tax regulation and conditions the country. One way of doing it in Canada is the establishment of Branch offices, where the income tax done in Canada is usually credited in that it is pitted against the Canadian dollar and the US dollar. In a case of losses which are incurred are usually included in the normal income tax of the Unites States owner (Castaldo, Brown, & McClearn, 2014). The federal tax regulations of Canada have a provision that 15% withholding must apply to services rendered while physically in Canada and must be submitted to the tax authorities. An advanced waiver can be obtained from the tax authorities but are not applicable if the non-Canadian is operating a business under a permanent residence in Canada (Castaldo, Brown, & McClearn, 2014).
United States enterprises attempting to do business in Canada through the incorporated domain should then seek to have the tax waivers if the business is being operated under the branch in Canada. This will enable the enterprise to have the waivers trickling down to the recipient of the tax liability. (Castaldo, Brown, & McClearn, 2014), suggest that Canada has strategic plans for combating climate change and therefore any of new business enterprise should have clear guidelines on how to mitigate aspects of pollution of the environment. The enterprise must then conform to the Canadian environmental regulations. The other aspect according to (Castaldo, Brown, & McClearn, 2014) is the regulation in which Canada on cross-border enterprise establishments where luckily for the United States citizens, there is the income tax treaty which provides relief for some matters of operations. Limited liability companies are very regular aspects of doing business in the United States, because of the legal and tax benefits which are provided therein, however, LLCs are not allowed on the same status as in the United States.
In conclusion, Canada is one of the countries in the world with elaborate and well regulated and meaning environment for conducting and establishing enterprises. Its vast resources and government support make it a preferred destination for the conducting businesses. It is a country which has technological might, competent and skilled labor force, clean and uncorrupted working environment and systems and government. Canada, therefore, stands tall as a stalwart of economic development and prosperity for anyone, either a visitor or a citizen.
References.
Ayres, J. M. (2004). Political Economy, Civil Society, and the Deep Integration Debate in Canada. American Review Of Canadian Studies, 34(4), 621-647.
Borzykowski, B. (2014). Doing Good While Doing Well. Canadian Business, 87(8), 23-24.
Castaldo, J., Brown, m., & McClearn, M. (2014). HOW TO PAY NO TAXES. Canadian Business, 87(2), 62-67.
González, G. H. (2014). Productivity Gap and Asymmetric Trade Relations: The Canada-United States of America Integration Process. Economía (02544415), 37(73), 31-46.
Hoffman, Nicole P. (2000). An Examination of the “Sustainable Competitive Advantage” Concept: Past, Present, and Future, Academy of Marketing Science Review, v 2000 (4).
Howlett, M., & Migone, A. (2014). Making the invisible public service visible? Exploring data on the supply of policy and management consultancies in Canada. Canadian Public Administration, 57(2), 183-216. doi:10.1111/capa.12065
Hutt, M. D., & Walker, B. A. (2015). Bridging the Theory-Practice Gap in Business Marketing: Lessons from the Field—The JBBM at 21. Journal Of Business-To-Business Marketing, 22(1/2), 67-72. doi:10.1080/1051712X.2015.1020242
Krugman, Paul R. and Maurice Obstfeld (2003). International Economics: Theory and Policy, Sixth Edition, New York: Addison-Wesley.
Panos, J. (2015). Public Services Private Profits: The Political Economy of Public-Private Partnerships in Canada. Canadian Journal Of Political Science, 48(4), 977-978. doi:10.1017/S0008423915000864
Scapin, T. (2016). The Ambiguous Meaning of the Ethical Issue in a Context of NPM Reforms: Insights from the OECD, Canada, and France. Myspace Journal Of Public Administration & Policy, 9(2), 93-119. doi:10.1515/nispa-2016-0016
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