GLOBAL MACRO ECONOMICS

TOPIC – COUNTRY REPORT ON CANADA

SUBMITTED BY: SUBMITTED TO:

ANKUR TYAGI RAKHI SINGH

ADITYA MAHENDRA RACHNA MADAN

BHAVANA LAKHWANI

DEEPANSHU WADHWA

EKTA SINGH

MEDHAVI VERMA

MADHUR AGARWAL

PRIYANKA SHARMA

MADHAV SHARMA

RAHUL KUMAR

A  Short History of Canada

First People

Aboriginal peoples are thought to have arrived from Asia thousands of yearsago by way of a land bridge between Siberia and Alaska. Some of them settledin Canada, while others choose to continue to the south. When the Europeanexplorers arrived, Canada was populated by a diverse range of Aboriginalpeoples who, depending on the environment, leading a wandering life with no fixed abode or settled lifestyles, were hunters, fishers or farmers.

First contacts between the Aboriginal peoples and Europeans probablyoccurred about 1000 years ago when Icelandic Norsemen settled for a brieftime on the island of New found land. But it would be another 600 years beforeEuropean exploration began in earnest.

First Colonial Outposts

Seeking a new route to the rich markets of the Orient, French and Britishexplorers plied the waters of North America. They constructed a number ofposts - the French mostly along the St. Lawrence River, the Great Lakes andthe Mississippi River; the British around Hudson Bay and along the Atlanticcoast. Although explorers such as Cabot, Cartier and Champlain never found aroute to China and India, they found something just as valuable - rich fishinggrounds and teeming populations of beaver, fox and bear, all of which werevalued for their fur.

French and British were began to settle permanently in the early 1600s andincreased throughout the century. With settlement the economic activity came into force , but the colonies of New France and New England remained economicallydependent on the fur trade and politically and militarily dependent on theirmother countries.

Inevitably, North America became the focal point for the bitter rivalry betweenEngland and France. After the fall of Quebec City in 1759, the Treaty of Parisassigned all French territory east of the Mississippi to Britain, except for the

islands of St. Pierre and Miquelon, off the island of Newfoundland.

Under British rule, the 65 000 French-speaking people of Canada had asingle aim - to retain their traditions, language and culture. Britain passed theQuebec Act (1774), which granted official recognition to French Civil Law andguaranteed religious and linguistic freedoms.

Large numbers of English-speaking colonists, called Loyalists because theywished to remain faithful to the British Empire, sought refuge in Canada afterthe United States of America won its independence in 1776. They settledmainly in the colonies of Nova Scotia and New Brunswick and along the GreatLakes.

The increase in population led to the creation in 1791 of Upper Canada (nowOntario) and Lower Canada (Quebec). Both were granted their ownrepresentative governing institutions. Rebellions in Upper and Lower Canada in1837 and 1838 prompted the British to join the two colonies, forming theunited Province of Canada. In 1848 the joint colony was granted responsiblegovernment. Canada gained a further measure of autonomy but remained partof the British Empire.

A Country Is Born

Britain's North American colonies - Canada, Nova Scotia, New Brunswick,Prince Edward Island and Newfoundland - grew and prospered independently.But with the emergence of a more powerful United States after the AmericanCivil War, some politicians felt a union of the British colonies was the only wayto fend off eventual annexation. On July 1, 1867, Canada East (Quebec),Canada West (Ontario), Nova Scotia and New Brunswick joined together underthe terms of the British North America Act to become the Dominion of Canada.

The government of the new country was based on the British parliamentarysystem, with a Governor General (the Crown's representative) and a Parliamentconsisting of the House of Commons and the Senate. Parliament received thepower to legislate over matters of national interest (such as criminal law, tradeand commerce, and national defence), while the provinces were givenlegislative powers over matters of "particular" interest (such as property and

civil rights, hospitals and education).

Westward Expansion

Soon after Confederation, Canada expanded into the northwest. Rupert's Land- an area extending south and west for thousands of kilometres from HudsonBay - was purchased by Canada from the Hudson's Bay Company, which hadbeen granted the vast territory by King Charles of England in 1670.

Westward expansion did not happen without stress. In 1869, Louis Riel led anuprising of the M ้tis in an attempt to defend their ancestral rights to the land. Acompromise was reached in 1870 and a new province, Manitoba, was carvedfrom Rupert's Land.British Columbia, already a Crown colony since 1858, decided to join thesssDominion in 1871 on the promise of a rail link with the rest of the country;Prince Edward Island followed suit in 1873. In 1898, the northern territory ofYukon was officially established to ensure Canadian jurisdiction over that areaduring the Klondike gold rush. In 1905, two new provinces were carved fromRupert's Land: Alberta and Saskatchewan; the residual land became theNorthwest Territories. Newfoundland preferred to remain a British colony until1949, when it became Canada's 10th province.

The development of new provinces coincided with an increase of immigration toCanada, particularly to the west. Immigration peaked in 1913 with 400 000coming to Canada. During the pre-war period, Canada profited from theprosperous world economy and established itself as an industrial as well as anagricultural power.

A Nation MaturesCanada's substantial role in World War I won it representation distinct fromBritain in the League of Nations after the war. Its independent voice becamemore and more pronounced, and in 1931 Canada's constitutional autonomyfrom Britain was confirmed with the passing of the Statute of Westminster.

In Canada, as elsewhere, the onset of the Great Depression in 1929 broughthardship. As many as one of every four workers was without a job and theprovinces of Alberta, Saskatchewan and Manitoba were laid waste by drought.

Ironically, it was the need to supply the Allied armies during World War II thatboosted up Canada out of the Depression.

Since World War II, Canada's economy has continued to expand. This growth,combined with government social programs such as family allowances, old-agesecurity, universal medicare and unemployment insurance, has given Canadiansa high standard of living and desirable quality of life.

There are some changes which are noticeable have occurred in Canada's immigration trends. Before World War II, most immigrants came from the British Isles or eastern Europe. Since 1945, increasing numbers of southern Europeans, Asians, SouthAmericans and people from the Caribbean islands have enriched Canada'smulticultural mosaic.

On the international scene, as the nation has developed and matured, so have itsreputation and influence. Canada has participated in the United Nations since itsinception and is the only nation to have taken part in almost all of the UN'smajor peacekeeping operations. It is also a member of the Commonwealth, laFrancophonie, the Group of Seven industrialized nations, the OAS(Organizationof American States) and the NATO (North Atlantic Treaty Organization)defence pact.

A New Federation in the Making

The last quarter of a century has seen Canadians grapple once more withfundamental questions of national identity. Discontent among manyFrench-speaking Quebeckers led to a referendum in that province in 1980 onwhether Quebec should become more politically autonomous from Canada, buta majority voted against that option.

In 1982, the process toward major constitutional reform culminated in thesigning of the Constitution Act. Under this Act, the British North America Actof 1867 and its various amendments became the Constitution Act, 1867-1982.The Constitution, its Charter of Rights and Freedoms and its general amendingformula redefined the powers of governments, entrenched the equality ofwomen and men and protected the rights of individuals and ethnoculturalgroups.

Two major efforts were made to reform the constitutional system: the 1987Meech Lake Accord - which was not implemented since it did not obtain thelegislative consent of all provinces - and the 1991 Charlottetown Accord. TheCharlottetown Accord would have reformed the Senate, entrenched theprinciple of Aboriginal self-government and made other major changes in theConstitution. It was rejected by Canadians in a national referendum held onOctober 26, 1992.

The Parliament of Canada has since passed a bill, on February 2, 1996,guaranteeing Canada's five major regions that no constitutional change will be there concerning them would be made without their unanimous consent. As well, less than amonth after the Quebec sovereignty referendum of October 30, 1995,Parliament passed a resolution recognizing Quebec as a distinct society withinCanada.

Geography

Canada occupies a major northern portion of North America, sharing land borders with the contiguous United States to the south and the US state of Alaska to the northwest. Canada stretches from the Atlantic Ocean in the east to the Pacific Ocean in the west; to the north lies the Artic Ocean. Greenland is to the northeast, while Saint Pierre and Miquelon is south of Newfoundland. By total area (including its waters), Canada is the second – largest country in the world, after Russia. By land area alone, Canada ranks fourth

Since 1925, Canada has claimed the portion of the Arctic between 60° and 141°W longitude, but this claim is not universally recognized. Canada is home to the world's northernmost settlement, Canadian Force Station Alert, on the northern tip of Ellesmere Island – latitude 82.5°N – which lies 817 kilometres (508 mi) from the North Pole.  Much of the Canadian Arctic is

covered by ice and permafrost. Canada has the longest coastline in the world, with a total length of 202,080 kilometres (125,570 mi); additionally, its border with the United States is the world's longest land border, stretching 8,891 kilometres (5,525 mi).

Since the end of the last glacial period, Canada has consisted of eight distinct forest regions, including extensive boreal forest on the Canadian Shield. Canada has around 31,700 large lakes,[88] more than any other country, containing much of the world's fresh water. There are also fresh-water glaciers in the Canadian Rockies and the Coast Mountain. Canada is geologically active, having many earthquakes and potentially active volcanoes, notably Mount Meager, Mount Garibaldi, Mount Cayley, and the Mount Edzizza volcanic complex. The volcanic eruption of theTseax Cone in 1775 was among Canada's worst natural disasters, killing 2,000 Nisga’s people and destroying their village in the Nass River valley of northern British Columbia. The eruption produced a 22.5-kilometre (14.0 mi) lava flow, and, according to Nisga'a legend, blocked the flow of the Nass River.

Canada's population density, at 3.3 inhabitants per square kilometre (8.5 /sq mi), is among the lowest in the world. The most densely populated part of the country is the Quebec city – Windsor Corridor, situated in Southern Quebec and Southern Ontario along the Great Lakes and the St. Lawrence River.

Average winter and summer high temperatures across Canada vary from region to region. Winters can be harsh in many parts of the country, particularly in the interior and Prairie provinces, which experience a continental climate, where daily average temperatures are near −15 °C , but can drop below −40 °C (−40 °F) with severe wind chills In non coastal regions, snow can cover the ground for almost six months of the year, while in parts of the north snow can persist year-round. Coastal British Columbia has a temperate climate, with a mild and rainy winter. On the east and west coasts, average high temperatures are generally in the low 20s °C (70s °F), while between the coasts, the average summer high temperature ranges from 25 to 30 °C (77 to 86 °F), with temperatures in some interior locations occasionally exceeding 40 °C (104 °F).

DemographicsThe 2011 Canadian census counted a total population of 33,476,688, an increase of around 5.9 percent over the 2006 figure. Between 1990 and 2008, the population increased by 5.6 million, equivalent to 20.4 percent overall growth. The main drivers of population growth are immigration and, to a lesser extent, natural growth. About four-fifths of the population lives within 150 kilometres (93 mi) of the United States border. Approximately 80 percent of Canadians live in urban areas concentrated in the Quebec City–Windsor Corridor, the British Columbia Lower Mainland, and the Calgary – Edomonton Corridor in Alberta. In common with many other developed countries, Canada is experiencing a demographic shift towards an older population, with more retirees and fewer people of working age. In 2006, the average age was 39.5 years; by 2011, it had risen to approximately 39.9 years.

According to the 2006 census, the country's largest self – reported ethnic origin is Canadian (accounting for 32% of the population), followed by English (21%), French (15.8%), Irish (13.9%), German (10.2%),Italian (4.6%), Chinese (4.3%), First Nations (4.0%), Ukrainian (3.9%), and Dutch (3.3%).  There are 600 recognized First Nations governments or band, encompassing a total of 1,172,790 people.

Canada's aboriginal population is growing at almost twice the national rate, and four percent of Canada's population claimed aboriginal identity in 2006. Another 16.2 percent of the population belonged to a non-aboriginal visible minority. The largest visible minority groups are South Asian (4.0%), Chinese (3.9%) and Black (2.5%). Between 2001 and 2006, the visible minority population rose by 27.2 percent.  In 1961, less than two percent of Canada's population (about 300,000 people) could be classified as belonging to a visible minority group, and less than one percent as aboriginal.  By 2007, almost one in five (19.8%) were foreign-born, with nearly 60 percent of new immigrants coming from Asia (including the Middle East).  The leading sources of immigrants to Canada were China, the Philippines and India. According to Statistics Canada, visible minority groups could account for a third of the Canadian population by 2031.

Canada has one of the highest per – capita immigration rates in the world. Driven by economic policy and family reunification, and is aiming for

between 240,000 and 265,000 new permanent residents in 2012, a similar number of immigrants as in recent years. In 2010, a record 280,636 people immigrated to Canada. New immigrants settle mostly in major urban areas like Toronto and Vancouver. Canada also accepts large numbers of refugees.  The country resettles over one in 10 of the world's refugees.

Canada is religiously diverse, encompassing a wide range of beliefs and customs. According to the 2001 census, 77.1 percent of Canadians identify as Christian; of this, Catholics make up the largest group, accounting for 43.6 percent of the population. The largest Protestant denomination is the United Church of Canada (accounting for 9.5% of Canadians), followed by Anglicans (6.8%), Baptists (2.4%), Lutherans (2%), and other Christian denominations (4.4%). About 16.5 percent declare no religious affiliation, and the remaining 6.3 percent are affiliated with non-Christian religions, the largest of which are Islam (2.0%) and Judaism (1.1%).

Canadian provinces and territories are responsible for education. The mandatory school age ranges between 5–7 to 16–18 years, contributing to an adult literacy rate of 99 percent. In 2002, 43 percent of Canadians aged 25 to 64 possessed a post-secondary education; for those aged 25 to 34, the rate of post-secondary education reached 51 percent. The Programme for International Student Assessment indicates that Canadian students perform well above the OECD average, particularly in mathematics, sciences, and reading.

Science and technologyIn 2011, Canada spent approximately C$29.9 billion on domestic research and development . The country has produced ten Nobel laureates in physics, chemistry and medicine and was ranked fourth worldwide for scientific research quality in a major 2012 survey of international scientists. It is additionally home to a number of global technology firms. Canada ranks twelfth in the world for Internet users as a proportion of the population, with over 28 million users, equivalent to around 84 percent of its total 2011 population.

The Canadian Space Agency operates a highly active space program, conducting deep-space, planetary, and aviation research, and developing rockets and satellites. Canada was the third country to launch a satellite into space after the USSR and the United States, with the 1962 Alouette 1 launch. In 1984, Marc Garmeau became Canada's first astronaut. As of

2012, nine Canadians have flown into space, over the course of fifteen manned missions.

Canada is a participant in the International Space Station (ISS), and is a pioneer in space robotics,, having constructed the Canadarm, canadarm 2 and Dexture robotic manipulators for the ISS and NASA's Space Shuttle. Since the 1960s, Canada's aerospace industry has designed and built numerous marques of satellite, including Radarsat – 1 and 2, ISIS and MOST. Canada has also produced a successful and widely used sounding rocket, the Black Brant; over 1,000 Black Brants have been launched since the rocket's introduction in 1961.

Economy of Canada

Canada has the eleventh-largest economy in the world (measured in US dollars at

market exchange rates), is one of the world's richest nations, and is a member of

the Organization for Economic Co-operation and Development (OECD) and

Group of Eight (G8). As with other developed nations, the Canadian economy is

dominated by the service industry, which employs about three quarters of

Canadians. Canada is unusual among developed countries in the importance of the

primary sector, with the logging industries and oi l industries being two of Canada's

most important. Canada also has a good manufacturing sector, centered in Central

Canada, with the automobile industry and aircraft industry especially important.

Canada has one of the highest levels of economic freedom in the whole world.

Today Canada closely resembles the U.S. in its market-oriented economic system,

and pattern of production. As of October 2011, Canada's national unemployment

rate stood at 7.4%, as the economy continues its recovery from the effects of the

2007-2010 Global Financial Crisis. In May 2010, provincial unemployment rates

varied from a low of 5.0% in Saskatchewan to a high of 13.8% in Newfoundland

and Labrador. According to the Forbes Global 2000 list of the world's largest

companies in 2008, Canada had 69 companies in the list, ranking Fifth next to

France. As of 2008, Canada’s total government debt burden is the lowest in the G8,

that is Group of Eight.

International trade makes up a large part of the Canadian economy, particularly of

its natural resources. In 2009, agricultural, energy, forestry and mining exports

accounted for about 58% of Canada's total exports. Machinery, equipment,

automotive products and other manufactures accounted for a further 38% of

exports in 2009. In 2009, exports accounted for approximately 30% of Canada's

GDP. The United States is by far its largest trading partner, accounting for about

73% of exports and 63% of imports as of 2009. Canada's combined exports and

imports ranked eighth among all nations in 2006.

Canada has considerable natural resources spread across its varied regions. As an

example, in British Columbia the forestry industry is of great importance, while the

oil and gas industry is important in , and Newfoundland and Labrador. Northern

Ontario is home to a wide array of mines, while the fishing industry has long been

central to the character of the Atlantic province, though it has recently been in

steep decline. Canada has mineral resources of coal, copper, iron ore, and

gold.

These primary industries are increasingly becoming less important to the overall

economy. Only some 4% of Canadians are employed in these fields, and they

account for 6.2% of GDP. They are still paramount in many parts of the country.

Many, if not most, towns in northern Canada, where agriculture is difficult, exist

because of a nearby mine or source of timber. Canada is a world leader in the

production of many natural resources such as gold, nickel, uranium, diamonds and

lead. Several of Canada's largest companies are based in natural resource

industries, such as EnCana, Goldcorp, and Barrick Gold. The vast majority of these

products are exported, mainly to the United States. There are also many secondary

and service industries that are directly linked to primary ones. For instance one of

Canada's largest Manufacturing Industries is the pulp and paper sector, which is

directly linked to the Logging Industry.

The large reliance on natural resources has several effects on the Canadian

economy and Canadian society. While manufacturing and service industries are

easy to standardize, natural resources vary greatly by region. This ensures that

differing economic structures developed in each region of Canada, contributing to

Canada's strong regionalism. At the same time the vast majority of these resources

are exported, integrating Canada closely into the international economy. Such

industries also raise important questions of sustainability. Despite many decades as

a leading producer, there is little risk of depletion. Moreover the far north remains

largely undeveloped as producers await higher prices or new technologies as many

operations in this region are not yet cost effective. In recent decades Canadians

have become less willing to accept the environmental destruction associated with

exploiting natural resources. High wages and Aboriginal land claims have also

curbed expansion. Instead many Canadian companies have focused their

exploration and expansion activities overseas where prices are lower and

governments more accommodating. Canadian companies are increasingly

playing important roles in Latin America, Southeast Asia, and Africa.

The exploitation of renewable resources have raised concerns in recent years. After

decades of escalating overexploitation the cod fishery all but collapsed in the

1990s, and the Pacific salmon industry also suffered greatly. The Logging

Industry, after many years of activism, has in recent years moved to a more

sustainable model.

KEY INDUSTRIES

SERVICE SECTOR:

The service sector in Canada is vast and multifaceted, employing about three

quarters of Canadians and accounting for 78% of GDP. The largest employer is the

retail sector, employing almost 12% of Canadians. The retail industry is mainly

concentrated in a small number of chain stores clustered together in shopping

malls. In recent years, there has been an increase in the number of big-box stores,

such as Wal-Mart (of the United States) and Future Shop (a subsidiary of the US

based Best Buy) and Zellers (since most of their leases have been purchased by

Target). This has led to fewer workers in this sector and a migration of retail jobs

to the suburbs.

The Second largest portion of the service sector is the business services, employing

only a slightly smaller percentage of the population. This includes the financial

services, real estate, and communications industries. This portion of the economy

has been rapidly growing in recent years. It is largely concentrated in the major

urban centre, especially Toronto, Montreal and Vancouver .

The Education and Health sectors are two of Canada's largest, but both are

largely under the purview of the government. The health care industry has been

quickly growing, and is the third largest in Canada. Its rapid growth has led to

problems for governments who must find money to fund it.

Canada has an important high tech industry, and also an entertainment industry

creating content both for local and international consumption. Tourism is of ever

increasing importance, with the vast majority of international visitors coming

from the United States. Though the recent strength of the Canadian Dollar has hurt

this sector, other nations such as China have increased tourism to Canada.

MANUFACTURING

The general pattern of development for wealthy nations was a transition from a

primary industry based economy to a manufacturing based one, and then to a

service based economy. Canada did not escape this pattern - at its (abnormally high

World War 2) peak in 1944, manufacturing accounted for 29% of GDP, declining

to 15.6% in 2005. Canada has not suffered as greatly as most other rich,

industrialized nations from the pains of the relative decline in the importance of

manufacturing since the 1960s. A 2009 study by Statistics Canada also found that,

while manufacturing declined as a relative percentage of GDP from 24.3% in the

1960s to 15.6% in 2005, manufacturing volumes between 1961 and 2005 kept pace

with the overall growth in the volume index of GDP. Manufacturing in Canada

was especially hard hit by the 2007-2010 global financial crises. As of 2010,

manufacturing accounts for 13% of Canada's GDP, a relative decline of more than

2% of GDP since 2005.

Central Canada is home to branch plants to all the major American and Japanese

automobile makers and many parts factories owned by Canadian firms such as

Magna International and Linamar Corporation. Central Canada today produces

more vehicles each year than the neighboring U.S. state of Michigan, the heart of

the American automobile industry. Manufacturers have been attracted to Canada

due to the highly educated population with lower labor costs than the United

States. Canada's publicly funded health care system is also an important attraction,

as it exempts companies from the high health insurance costs they must pay in the

United States.

Much of the Canadian manufacturing industry consists of branch plants of United

States firms, though there are some important domestic manufacturers, such as

Bombardier Inc.. This has raised several concerns for Canadians. Branch plants

provide mainly blue collar jobs, with research and executive positions confined to

the United States.

ENERGY

Canada is one of the few developed nations that is a net exporter of energy - in

2009 net exports of energy products amounted to 2.9% of GDP. Most important

are the large oil and gas resources centered in Alberta and the Northern Territories,

but also present in neighboring British Columbia and Saskatchewan. The vast

Athabasca Oil Sands give Canada the world's third largest reserves of oil after

Saudi Arabia and Venezuela according to USGS. In British Columbia and Quebec,

as well as Ontario, Saskatchewan, Manitoba and the Labrador region, hydroelectric

power is an inexpensive and relatively environmentally friendly source of

abundant energy. In part because of this, Canada is also one of the world's highest

per capita consumers of energy. Cheap energy has enabled the creation of several

important industries, such as the large aluminum industries in British Columbia

and Quebec.

Historically, an important issue in Canadian politics is the interplay between the

oil and energy industry in Western Canada and the industrial heartland of

Southern Ontario. Foreign investment in Western oil projects has fueled Canada's

rising dollar. This has raised the price of Ontario's manufacturing exports and made

them less competitive, a problem similar to the decline of the manufacturing sector

in Holland. Also, Ontario has relatively fewer native sources of power. However, it

is cheaper for Alberta to ship its oil to the western United States than to eastern

Canada. The eastern Canadian ports thus import significant quantities of oil from

overseas, and Ontario makes significant use of nuclear power.

The National Energy Policy of the early 1980s attempted to force Alberta to sell

low priced oil to eastern Canada. This policy proved deeply divisive, and quickly

lost its importance as oil prices collapsed in the mid-1980s. One of the most

controversial sections of the Canada-United States Free Trade Agreement of 1988

was a promise that Canada would never charge the United States more for energy

than fellow Canadians.

AGRICULTURE

Canada is also one of the world's largest suppliers of agricultural products,

particularly of wheat and other grains. Canada is a major exporter of agricultural

products, to the United States and Asia. As with all other developed nations the

proportion of the population and GDP devoted to agriculture fell dramatically over

the 20th century.

As with other developed nations, the Canadian agriculture industry receives

significant government subsidies and supports. However, Canada has been a strong

supporter of reducing market influencing subsidies through the World Trade

Organization. In 2000, Canada spent approximately CDN $4.6 billion on supports

for the industry. Of this, $2.32 billion was classified under the WTO designation of

"green box" support, meaning it did not directly influence the market, such as

money for research or disaster relief. All but $848.2 million were subsidies worth

less than 5% of the value of the crops they were provided for, which is the WTO

threshold. Consequently, Canada used only $848.2 million of its $4.3 billion

subsidy allowance granted by the WTO.

Business environment of canada

Despite the economic slowdown in much of canada over the last twelve months, its still a big world out there and it will continue to get bigger: even with the global downturn, global GDP will be over$ 60 trillion this year, according to the IMF. It was$36 trillion five years ago, and $29 trillion five years before that. The USA is a $15 trillion dollar economy today: it was$8.6 trillion dollar economy 10 years ago.china went from being a poor country, technology primitive and autarchic economy to the center of global manufacturing of consumer goods and a $3.8 trillion proto super power in less than two generations.

Canada has doubled the size of its economy economy in the past decade.

I think that companies both large and small have to keep these long term trends in mind when considering their future and their options beyond Canada’s border. Somebody in the enterprise – the boardthe CEO, the executive committee, the VP for marketing, has to be thinking 5 and 10 years ahead.

At the same time,it must be recognized that companies operate at the micro-economic level,at the market level. canadian companies that operate beyond our borders know that there are great business opportunities in Germany and Malaysia and the USand China,but most enterprises enterprises can’t be everywhere. They have to make choices.

Canadian companies have different reasons to expand internationally:developing new export markets is an obvious objective for many,but there are many other reasons to seek opportunities abroad:to develop new product lines, such as in the pharmaceutical industry; or to find opportunities less available at home, such as with engineering services, who need infrastructure projects in less developed countries; or to obtain a better return on investments in markets growing much faster than our own.

BUSINESS OPPURTUNITIES IN CANADA

Where to go to seek-out these opportunities is not an easy decision to make. There is only so much funding for long-term planning and development, there are lots of business opportunities, so you want to choose your option wisely.

Based on the research of previous Global Entrepreneur Indicator reports, the advice of peers and the economic environment are the two most important factors that influence entrepreneurs’ assessments of a country’s ability to foster entrepreneurial activity.

If peer advice and the economy are the factors which dictate entrepreneurs’ willingness to conduct new business activities, than the ability to access capital dictates their ability to do so. Together,these factors showcase the entrepreneurial community’s willingness and ability to assertively conduct new business –precisely the type of activities that healthy (or recovering) economies require.

Key findings include:

Half of the global entrepreneurial community expects the state of the economy in their countries to improve,but only slightly.canada and the latin America/Caribbean regions hold the most positive predications’and by a significant margin.

Entrepreneurs are polarized in their views regarding;

The accessibility of capital

It is apparent that there is no one trend dominating entrepreneurial access to capital.in fact while one in 10 respondants indicated that it is very easy for them to acquire capital,the same proportion reported extreme difficulty.

Starting a new business:

Significantly new entrepreneurs would recommend starting a new business now than a year ago.

Entrepreneurs are newly polarized in their opinions:one in three entrepreneurs is very likely to recommend starting a new business,while one in five entrepreneurs is very unlikely.canada and the latin America/Caribbean regions are the most positive about the business environment overall.

Economic environment:

Well more than (61%) of entrepreneurs globally expect the state of the economy in their countries to improve,although they do not expect to see a large improvement.

Entrepreneurs in Canada and the latin America/carribean region have the highest expectations of a positive change in the economic landscape .the overwhelming majority of entrepreneurs(91%)in Canada expect an improvement.a sizeable majority(74%) of entrepreneurs in the latin America/Caribbean region expectthe economy to improve , although not greatly.

Proclivity to Start a Business

A key finding of this research is that, of all factors entrepreneurs take into account when deciding whether or not to start a new business, the advice of peers is globally the most important factor, followed closely by the economy.

A concerning trend is that, unlike a year ago, where the vast majority of entrepreneurs (86%) would have started a new business in their country, just more than two-thirds (68%) of entrepreneurs would do so now. Still, only 30% of entrepreneurs are very likely to recommend starting a business, and one in five entrepreneurs is very unlikely to do so.

In stark contrast to their generally positive assessment of the economy, but perhaps explained

Somewhat by their lackluster predictions on access to capital, Canadian entrepreneurs were the least positive about starting a new business. In alignment with the polarized global indicator at its extremes, 30% of entrepreneurs stated that they would be very likely to recommend starting a business in Canada.

The Latin America / Caribbean region is the most positive about starting a venture, with 40% being very likely start up a business and the vast majority 80% at least likely to recommend starting one. Asia / Pacific entrepreneurs were also generally positive (71%) about starting a business. The Europe / Middle East region (64%) is more closely aligned with the global indicator, but without the clear polarization of their global peers.

U.S. entrepreneurs were almost directly aligned with the global indicator in terms of their likelihood to start a business. However, the number of U.S. entrepreneurs who would be very unlikely to start a business (11%) is less than half of the global average.

CANADA – INDIA BUSINESS COUNCIL

About C-IBC

Activities and InitiativesIndia is an emerging power in the 21st century, and is forecasted to become the 3rd

largest economy in the world. India is a source of talent and innovation, and will be be integral to Canada’s future prosperity. India supports a vibrant, pluralistic democracy and insists on an open and free press.

Whatever the goals and objectives oftheir business the C-IBC has a membership option to suit.

Whichever option they choose they will receive a comprehensive and cost effective range of service carefully designed to initiate business development in India, or further develope their existing business in India.

They deliver advisory services that offer insight and information, business intelligence, market entry and operation support.

They encourage opportunities to network and meet the right people, attend trade delegations, advocate on behalf of their interest, enable access to key decisions makers, and provide advanced notice and preferred status at events. These events include CEO forums, sector specific private sessions with senior Indian business leader and investors, and flagship events such as our Diwali Gala Dinner and business missions to India.

They run active board level committees focused on a variety of sectors. They focus on facilitating exports, partnerships and investment to and from India.

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Organization

The Canada-India Business Council has been a long-standing supporter of bilateral trade and investment growth between Canada and India.

Founded in 1982 by the Bank of Nova Scotia, Bombardier and the late Thomas Bata, the C-IBC has sought to deepen the relationship between corporate and institutional Canada and their Indian counterparts.

C-IBC is governed by the board of directors, and is comprised of senior executives from Canada’s leading organizations involved in India and alongside industry leaders from both small and medium-sized enterprise. The C-IBC has a secretariat that is led by a president, Executive Director and an Executive Vice-President to direct the organization and operating team.

C-IBC is headquartered in Toronto with operations in British Columbia, Quebec and New Delhi, INDIA.

CONCLUSIONOne of the key lessons of the global recession and financial crisis is that policies matter. Countries that weathered the recession better—including Canada—have generally been those with strong fiscal and monetary policy frameworks, as well as robust financial regulatory systems. The global recession has also demonstrated that problems that originate in one country can quickly spread around the globe.

As a dynamic trade-oriented economy, Canada remains exposed to financial and economic shocks that originate elsewhere. That is why Canada will exercise its leadership position to promote the cooperation to secure the global recovery and prevent future crises. As chair of the G-7 and host of the June 2010 G-20 Leaders' Summit, Canada is taking a leadership role as we move toward a sustainable global recovery.

Thus, by analyzing the various environment we can conclude that Canada has a strong cultural, legal & economical background and also have an excellent trade relations with the nation round the globe.