Canadian Govt Services for Canadian Companies

1. Loan and advances: - Canadian govt provides loans and advances to all medium and small-
scale industries for do business globally, so that companies can compete in international
market with effective manner.
2. Tax Refund: - Many of companies which has proficiency in special kind of work, eligible for
receive refund of tax from government such as agriculture development companies, research
and development companies etc. It motivates the companies to extend its business in
international market.
3. Equity investments: - Govt make investment in different companies for make financial
strength. Government provides expert service to diff departments of business for making
efficient use of funds in the business.
4. Loan guarantee: - Govt gives guarantee to financial institutions for granting loans to
companies for expand their business in international market.
5. Wage Subsidies: - Companies get wage subsidies from government so that business can pay
living wages to their employees and can motivate to employees.
6. Training Credit: - Govt department provides professional training to employees of different
companies so that they can face competition in international market.
7. Research & Development: - Govt agencies do research in global market for provide
opportunities to domestic firm to take advantage in foreign market.

Role of Departments of Canadian Govt in Canadian economic

development
a) Regional Development agencies: - it helps to address key economic challenges by providing
regionally tailored programs, services, knowledge and expertise that: -
1. build on regional and local economic assets and strength.
2. support business growth, productivity and innovation.
3. Support communities.
b) Canada economic Development for Quebec Regions: - It promotes the long term economic
development of regions of Quebec by giving special attention to those where slow economic
growth is prevalent or opportunities for productive employment are inadequate.
c) Export development Canada: - It is state-owned enterprise wholly owned by govt of Canada.
It mandate is to support and develop trade between Canada and other countries. Canada
competitiveness in the international market place. It includes services of trade credit insurance,
export financing and bonding solutions etc.
d) Global affairs Canada: - It manages Canadas diplomate and consular relations and promotes
the international trade and leads to Canadian development.
e) Canadian Trade commissioner service: - It will provide intelligence and practical advice to
business units regarding foreign market which helps in make better, more timely and cost-
effective decisions to achieve goals.
f) Canadian Northern Economic Development Agency: - The Canadian Northern Economic Development
Agency, established in 2009, works to help develop a diversified, sustainable, and dynamic economy
across Canada's three territories, while at the same time contributing to Canada's prosperity. We work
with communities to develop and diversify local economies, and take advantage of the immense
strengths of Northern Canada.

SWOT of key Canadian firms

1. RBC: -

Strength: - Serve 17 million clients Weakness: - Only more operational activity

Strong reputation
Global Business
Employment to 68480
Opportunities: - Geographical expansion
Increase in offerings to Cater.
in U.S & Canada
Depend on volatile financial market.
Threats: - Intensive competition
Imparted by regulatory & legal changes

2. Air Canada: -

Strength: - Largest airline of Canada Weakness: - Brand affinity is low.

Experienced workforce
Caters to over 170+ destination
Opportunities: - launch of low cost airlines
More penetration into global market.
Aging aircraft in fleet is a concern.
Threats: - currency fluctuations
Low cost carriers
Imparted by regulatory & legal changes

3. Teck Resources: -
 Strength: - Diversified resources Weakness: - Dependence on 3rd parties.
Leading name in north America External Power usage.
Employees 13000

Opportunities: - Mergers & Acquisitions for Threats: - Competitor

worldwide growth. Govt regulatory & legal changes
Importance of coal.

4. Bombardier: -

Strength: - Diverse product portfolio Weakness: - Delay in C series

High growth in key market Wrong aircraft forecast
Superior organizational structure High debt equity ratio.

Opportunities: - change in life style Threats: - Loss of market share

Rising demand for high speed energy Oil price volatility
Use of fuel efficient. Environment regulatory

Key Canadian Industries & firms

The Great White North has its fair share of successful industries that continue to prosper year
after year even in the worst economic climates. Although the Canadian market isnt as large or
diverse as some of the other markets in the world, its every bit as stable if not more so.

With that in mind, heres a list of the top five industries prospering in Canada.

1. Agriculture

When it comes to wheat and grains, Canada has it covered.

In fact, Canada is one of the largest suppliers of agricultural products in the world. Due to its
strategic location Canada exports most of its crops to its big brother of the south, America.
As part of the World Trade Organization (WTO), Canada practices fair-trading by ensuring
whatever it puts on the market agriculturally doesnt influence the price of crops in other
countries. Canadas agricultural sector is steadily growing every year and accounts for 8% of the
countrys Gross Domestic Product.

2. Energy

Due to its abundance of oil and natural gas, Canada has quickly become a world leader in
energy resources.

Canada not only has the third largest oil reserve in the world, its also a world leader in
hydroelectric power with Quebec, Ontario, and Saskatchewan all using vast amounts of
hydroelectric energy.

Because of the abundant energy resources available, Canadas oil exporting and other energy
related products make up for 2.9% of the countrys GDP. Additionally, Canada has adopted
solar and wind energy production as the next major industry in the energy sector ensuring
continued prosperity.

3. Technology

Although its for the most part undervalued, Canadas technology industry is one of the
strongest in the world. And, thanks to the Canadian Startup Visa, which is a government Visa
aimed at bringing in new tech companies from all over the world, Canada will continue to
change the worlds technology landscape.

The government Visa will undoubtedly bring the brightest minds to Maple Leaf Country and
give places like Silicon Valley and India a run for their technology. Canadas technology industry
is currently prospering the most in areas such as digital media, wireless infrastructure,
Ecommerce, and general Internet services.

4. Services
Accounting for a whopping 80% of Canadas GDP and employing almost three quarters of the
entire country is Canadas service sector. And, within the sector itself, industries like retail,
business, education, and health make up the largest portions.

Although the strength of the Canadian dollar has hurt tourism numbers, Canada still has a
strong tourism industry with most of its international travelers hailing from the United States.
In fact, Canadas retail sector, which directly relates to tourism, accounts for 12% of the GDP
and that percentage is steadily growing.

5. Manufacturing

Although the global financial crisis took its toll on Canada from 2008 to 2010, the countrys
manufacturing industries are on the rebound and make up for 14% of Canadas GDP. And, like
never, Canadas automotive branch plants are back in full swing.

American and Japanese auto industries are attracted to Canadas highly educated workforce
and low labor costs making it a go-to destination for automobile manufacturing. Automotive
parts production is one of fastest growing manufacturing sectors in the country.

Its hard to ignore the fact that Canadas industries are booming.

With the abundant natural resources, government incentives, and stellar workforce, itll
continue to prosper for years to come.

Department of Canadian Govt assist economic development

and business development
1. Metal Additive manufacturing demonstration program: - Canada makes partners with
NRCIRAP to deliver the metal additive manuf. Demo program designed to provide companies
with a better understanding of advantages and business opportunities both in terms of cost
saving and efficiency of adopting technology and process.
2. SMART advanced technologies for Global growth program: - It is funded by FEDDEV Ontario
to support Ontario manufactured in accelerating their investment in advanced technologies.
3. Business Innovation access program: - Is a govt of Canada pilot program, announced in 2013
budget that provides $ 20 million in funding to small and medium sized enterprise to help them
access business services at Canadas learning institutions and publicity funded research
organization to bring bigger and better innovation to market faster.
4. Canada Economic development for Quebec Regions: - This agency provides assistance to
enterprise communities and organization that support them through its network of business
offices located throughout the province.
5. Atlantic Canada Opportunities Agency: - It works to create opportunities for economic
growth in Atlantic Canada by helping business become more competitive, innovative and
productive by working with diverse communication to development diversify local economies.

Founding people & Role in economic development

Canadas population of around 31 million people reflects a cultural, ethnic and linguistic mix that is
unique in the world.
Canadian multiculturalism is based on the belief that all citizens are equal and that diversity makes us
stronger as a country.
Founding peoples
The founding peoples of Canada include:
Aboriginal peoples
French Canadians
English Canadians
Aboriginal peoples
Aboriginal peoples had family living in Canada before European explorers, pioneers and settlers arrived.
There are three different groups of Aboriginal peoples:
First Nations
Inuit
Mtis
Indian refers to all Aboriginal people who are not Inuit or Mtis. In the 1970s, the term First Nations
began to be used. Today, about half of First Nations people live on reserve land in about 600
communities while the other half live off-reserve, mainly in urban centers.
The Inuit, which means the people in the Inuktitut language, live in small, scattered communities
across the Arctic. Their knowledge of the land, sea and wildlife enabled them to adapt to one of the
harshest environments on earth.
The Mtis are a distinct people of mixed Aboriginal and European ancestry, the majority of whom live in
the Prairie provinces. They come from both French- and English-speaking backgrounds and speak their
own dialect, Michif.
French Canadians
French Canadians are the descendants of French settlers and include:
Acadians
Quebecers
people in smaller French-speaking communities across Canada
The Acadians are descendants of French colonists who settled 400 years ago in what is now the Atlantic
Region.
Quebecers (Qubcois in French) live in Quebec. Most are French-speaking descendants of French
settlers from the 17th and 18th centuries who brought many French traditions with them.
Quebecers have a unique identity, culture and language. In 2006, the Canadian Parliament recognized
the Qubcois form a nation within a united Canada. One million English-speaking Anglo-Quebecers
form an important part of Quebec society.
English Canadians
Most English Canadians are descendants of English, Welsh, Scottish and Irish people. These include
settlers, soldiers and migrants who came to Canada from the 17th to the 20th century. Generations of
these pioneers helped bring British political customs and traditions to Canada.
Newcomers
Most Canadians were born in Canada and came from the original founding peoples. But over the past
200 years, many newcomers have helped to build and defend this countrys way of life.
Today, many ethnic and religious groups live and work in peace as proud Canadians. Until the 1970s,
most immigrants came from European countries. Since then, the majority have come from Asian
countries.
About 20 per cent of Canadians were born outside Canada. In Toronto, Canadas largest city, this
number is over 45 per cent. Immigrants like you are a valued part of Canadas multicultural society.

Role of Aboriginal People in Economic Development

Historical Overview
Historically, Aboriginal economies were subsistence oriented, organized around activities like
fishing, hunting and gathering. Economic activities depended on geographical availability and
seasonal patterns of major food sources. These factors influenced the organization of
Aboriginal groups, including settlement size and duration, the division of labour between
genders and interaction with other groups. Surplus of resources enabled possibilities for trade
among different Aboriginal communities. These activities not only provided material benefits
for communities economies, but also provided opportunities to build prestige, establish or
strengthen alliances, or resolve disputes.
The Complexity of Aboriginal Economies
Three factors have been particularly important in modern Aboriginal economies: the specific
evolutionary heritage of each community; the extent to which individuals were drawn into the
money market and wage economy; and the federal government's role in the support and
administration of Aboriginal economies. The economic contributions of Aboriginal peoples in
Canada are multifaceted. Although labour force participation comprises a significant portion of
these contributions, data that only includes paid labour ignore the contributions of Aboriginal
people for which no payment is received. For example, official statistics or discussions of
Aboriginal economic contributions based only on labour force participation neglect activities
undertaken for subsistence or as a form of payment for goods and services such as fishing,
hunting, trapping, sewing and childcare.
Economic Activities
The economic activities of Aboriginal peoples are diverse and span many industries and
professions. In 2010, the largest employer of Aboriginal people living in the provinces and off
reserves was health care and social assistance, followed by retail and trade, public
administration and construction. Aboriginal people were underrepresented in management
positions and in natural and applied sciences. While Aboriginal peoples participate in all sectors
of employment, historical, social and economic conditions have shaped representations of
different Aboriginal groups in the labour market.
It is estimated that Aboriginal people in Canada will generate $32 billion a year in
combined income across households, businesses and governments by 2016 more than
Newfoundland and Prince Edward Island combined.

However, Aboriginal Canadians represent 4% of the Canadian population and their 32 billion in
economic activity represent less than 1.5% of Canadas projected 2016 Gross Domestic Product.
Aboriginal prosperity is therefore essential to Canadas overall prosperity and Canadas long-
term economic success.

Canada International Trade

International trade is the exchange of capital, goods, and services across international
borders or territories. It is the exchange of goods and services among nations of the world. The
exchange of goods or services along international borders. This type of trade allows for a
greater competition and more competitive pricing in the market.
International trade is the purchase and sale of goods or services between residents of
different countries. The traders may be individuals, private businesses or government agencies.
Canadian exports of merchandise and services amount to over 40% of the nation's total
production, the merchandise accounting for about 33.5% while services and investment
receipts make up the balance.
Since 1960 (except 1974) Canada has exported more commodities than it has imported and has
had a merchandise trade surplus. Services and payments for borrowed capital have normally
greatly exceeded the export of services and receipts from investments, so that there has
generally been a sizable annual deficit in combined trade in commodities and services. For the
years 1988-1994 inclusive this deficit averaged $25 billion annually - which is the amount
Canada had to borrow abroad to make up the difference. In 1995 and 1996, however, because
of particularly strong growth in Canada's merchandise exports, this deficit has been reduced
dramatically so that for 1996 it was only $1.7 billion.
Merchandise Trade

The US, which purchases about 82% of Canadian merchandise exports (and which supplies
nearly 76% of all merchandise imports), is Canada's most important trading partner. Reliance
upon the US as a market for Canadian products has been growing for 100 years. Until WWII the
US and the UK frequently exchanged positions as the first and second most important
destinations for Canadian exports. However, the UK now imports only 1.5% of all Canadian
shipments abroad and only 2.6% of Canadian imports now comes from the UK.
Japan has supplanted the UK as Canada's second most important trading partner, although it is
not nearly as important as the US, accounting for only 4% of exports and 3% of imports. Almost
all imports from Japan are highly manufactured commodities, such as automobiles and
electronic equipment, whereas exports to Japan are almost entirely raw and semi processed
materials, such as lumber, metals, coal and farm products.
The relative significance of Canada's trade with the European Union (EU) countries (including
the UK) has fallen since the mid-l960s, and now accounts for only 5.7% of total exports and
8.7% of total purchases abroad. Although still small in relative terms, trade with the nations of
Southeast Asia is of increasing importance. Exports of wood and paper products, cereal grains,
machinery and equipment, metal products and chemicals, and imports of electrical products
and machinery of various types are all becoming increasingly important as these nations
industrialize. China, which now is the source of over 2% of Canadian imports, could soon
surpass Japan as a Canadian source of supply.
About 46% of Canadian exports are automobiles, machinery and equipment and various
consumer goods. Products based on Canada's natural resource industries - agriculture, energy,
fishing, forestry and mining - make up the remaining 54%. In contrast, about 66% of Canadian
imports are in the first three categories, while only 31% are natural resource-based products.
Consequently, Canada continues to have a surplus on commodity trade in natural resource-
based products and a deficit on other manufactured goods, a pattern throughout Canadian
history.
In its early development, Canada depended almost exclusively upon its natural resources for its
export base, relying first on fish, furs and lumber; then on farm products, especially grains, pulp
and paper, and various metals and minerals. Since WWII petroleum and natural gas, fertilizers
and petrochemicals, uranium, iron ore, Sulphur, potash, coal, electricity, canola and red meats
have augmented the nation's resource-based exports. Diamonds promise to be another
significant export in the years ahead.
Today, relatively few products dominate the export trade in each broad category. Wheat
accounts for 24% of all agricultural exports, while live animals and meat products account for
another 20%. Softwood lumber, wood pulp and newsprint comprise about 77% of forest-
product foreign sales. Iron, copper, nickel and zinc ores and concentrates total 71% of crude
metal exports, whereas refined forms of these, plus aluminum and precious metals, account for
nearly all metal and alloy exports. Automobiles and parts alone make up 23% of total exports.
On average, highly manufactured goods, including office machinery and equipment (such as
computers), chemicals and fertilizers, and miscellaneous manufactured goods, are, in volume
and value, the most rapidly growing segment of Canada's exports. They are also among the
fastest-growing imports, so that the absolute dollar deficit for Canada in such products for 1996
was still $25 billion. Other rapidly growing traded products include petroleum and natural gas
and industrial materials.
Canada's mix of merchandise trade can be attributed to a variety of factors. First is the nation's
endowments of both renewable and nonrenewable natural resources. They provide the
foundation for comparative advantage in, and the massive shipments abroad of, crude and
semi processed minerals as well as energy, agricultural, forestry and fishing products. Even
highly processed exports from the chemical sector rely on natural gas and petroleum deposits.
The Canada-US Free Trade Agreement and, subsequent to it, the North-American Free Trade
Agreement have been important in stimulating greater north-south trade. On the one hand,
Canadian manufacturing firms have had their protection removed, thereby forcing them to
reorganize, adopt the latest technology and generally become more efficient. On the other
hand, the removal of the remaining US tariffs and the focus on globalization generally have
prompted Canadian firms to become much more export-oriented. These forces have been
augmented by the growth and prosperity of the US economy, which has drawn in more
products from Canada to meet its needs. In addition, research and development in a few
outstanding sectors such as telecommunications, and Canadian production by firms under
license from foreign parents or holders of technology, have been significant in expanding
exports. More aggressive and better-educated management, improved labour-management
relations, and the control of inflation have all contributed to Canada's strong export
performance.
Generally, however, Canadian research and development in the manufacturing sector has not
been as strong as it might have been. This fact, coupled with the rapid pace of technological
advance in other developed nations, has meant that Canada has had to rely heavily on imports
of technology-intensive products to meet its needs. Hence the large proportion of highly
processed manufactures imported. This proportion is also related to the high percentage
of FOREIGN INVESTMENT and control of Canadian manufacturing, because foreign-owned firms
import a larger share of their purchases than domestic firms do. In many cases these firms
import components and parts and simply assemble them in Canada. Imports of many consumer
products such as clothing, shoes and toys are also large because they are labour intensive, and
many of the developing and newly industrialized nations of Asia and Latin America have much
lower labour costs than does Canada.

Canada Competitor nation

Canada is a country in the northern part of North America. Its ten provinces and three
territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering
9.98 million square kilometers (3.85 million square miles), making it the world's second-largest
country by total area and the fourth-largest country by land area. Canada's southern
border with the United States is the world's longest bi-national land border. Most of the
country has a cold or severely cold winter climate, but southerly areas are warm in summer.
Canada is sparsely populated; most of its land territory being dominated by forest and tundra
and the Rocky Mountains. It is highly urbanized with 82 per cent of the 35.15 million people
concentrated in large and medium-sized cities, many near the southern border. Its capital
is Ottawa, and its largest metropolitan areas are Toronto, Montreal and Vancouver.
Canada Competitor Nations
a) U.S
b) Mexico
The Canadian economy advanced 0.9 percent on quarter in the first three months of 2017,
following an upwardly revised 0.7 percent expansion in the previous period. Growth was boosted
by a surge in vehicles purchases and a rebound in business investment while exports fell.
Expressed at an annualized rate, the GDP rose 3.7 percent, beating expectations of 3.6 percent.
GDP Growth Rate in Canada averaged 0.79 percent from 1961 until 2017, reaching an all-time
high of 3.33 percent in the fourth quarter of 1963 and a record low of -2.30 percent in the first
quarter of 2009. Canadas GDP grew at a 3.7-per-cent pace in the first three months of 2017,
more than tripling the U.S.s 1.2-per-cent pace.

Competition with U.S

Canadas exports to the United States have always been a major contributor to the level of
economic activity in Canada. To illustrate, Canadas exports as a share of gross domestic
product (GDP) equaled around 27 per cent in 2014, while exports to the U.S. accounted for
almost 77 per cent of total Canadian exports in that year. Hence, exports to the U.S. in 2014
amounted to approximately 21 per cent of Canadas GDP in 2014. In short, strong continued
growth of exports to the U.S. market is of major importance to the future performance of the
Canadian economy.
Against this background, the stagnating growth of real (inflation-adjusted) U.S. merchandise
imports from Canada in the post-2000-time period is cause for concern. Specifically, from 2000
through 2014, nominal U.S. imports from Canada increased by approximately 50 per cent, while
the U.S. import price deflator for Canadian goods increased by approximately 52 per cent.
Hence, real U.S. imports from Canada declined slightly over the period from 2000 through 2014.
There are several possible explanations of the cessation of real export growth to the U.S. One is
the slow growth of the U.S. economy over much of the period from 2000-2014, particularly
during and following the Great Recession of 2008. Slower real growth of U.S. incomes can be
expected to reduce the growth of demand for all types of goods including imports from Canada.
A second possible explanation is the appreciation of the Canadian dollar over much of the time.
For example, the Canadian dollar increased from an all-time low value of US$.6179 on Jan. 21,
2002 to an all-time high value of US$1.1030 on Nov. 7, 2007. It then depreciated modestly to a
value of US$.9414 by Jan. 1, 2014.
A third possible explanation is the higher costs to shippers (and ultimately to U.S. importers)
associated with tighter border security procedures implemented by U.S. authorities after 9/11.
Perhaps a more troubling and longer-lasting explanation is Canadas loss of U.S. market share to
rival exporters. For example, Canadas share of total U.S. imports of motor vehicles and parts
decreased by almost 12 percentage points from 2000 through 2013, while Mexicos share
increased by eight percentage points. Canada lost market share (particularly to China) in
electrical machinery and even in its traditionally strong wood and paper products sectors.

Competition with Mexico

Canadas economy is larger than Mexicos, but within a few decades, their relative positions will
switch. PricewaterhouseCoopers projects that, on a purchasing power parity basis, Mexicos
GDP will be $6.6-trillion by 2050 the seventh-largest economy in the world, with twice
Canadas projected GDP of $3.3-trillion. Additionally, by 2050, one in six Americans will be of
Mexican ancestry. In short, the Mexican economy and the Mexican diaspora will provide new
and compelling opportunities for trade and investment far too large for Canadians to ignore.

Canadas competitive advantages

These advantages include:

Strong economic growth: Throughout the global economic downturn, Canada proved to be a
top-performing economy offering businesses opportunities to grow, innovate and succeed. The
International Monetary Fund predicts that, after the United States, Canada will have the fastest
economic growth in the G-7 in 2012. Canada has also recorded the fastest employment growth
in the G-7 since mid-2009, fully recovering all the jobs lost during the recession.

Fiscal strength: Canada entered the global recession with a strong record of balanced budgets
and low debt. Canada has the strongest fiscal position in the G-7 and among the best fiscal
prospects in the G-20. Canada is set to return to budgetary balance over the medium term. The
federal debt-to-GDP ratio stood at 33.9 percent in 201011, and it is projected to decline to
31.7 percent by 201516.

Financial stability: Canadas strength is underpinned by the worlds most stable financial sector,
as affirmed by the WEF. At a time when financial institutions around the world were collapsing,
no Canadian bank or insurer failed, and none required bailouts. Global Finance magazine has
affirmed that six of the top 10 safest banks in North America are Canadian.

Lower business costs and taxes: Canada offers a low-cost, low-tax environment. Canadas
overall tax rate on new business investment is substantially lower than that of other G-7
countries. Canada has a combined federal-provincial statutory general corporate income tax
rate of 26 percent, below the level of most other G-7 countries and about 13 percentage points
lower than that of the United States. Canada is the first among G-20 members to make itself a
tariff-free zone for manufacturers by eliminating tariffs on manufacturing inputs, machinery
and equipment.

An excellent place for research and innovation: Canada offers a winning environment for
research and innovation, including world-leading R & D infrastructure, innovation incentives
and scientific talent. Canada has the G-7s highest expenditures on research and development
done in institutions of higher education, when measured as a share of GDP. Canada offers one
of the most generous R & D tax incentives in the industrialized world. Combined federal and
provincial credits can save foreign investors, on average, up to 30 percent of investment in R &
D in Canada.

A competitive workforce: Canada is home to a highly educated, flexible and multicultural

workforce that is well suited for todays knowledge-based economy. Canada has one of the
worlds best-educated workforces with the second-highest proportion of post-secondary
graduates in the Organization for Economic Co-operation and Development (OECD). Canada
ranks second in the G-7 and fourth in the world for the quality of its management schools,
according to the World Economic Forum.

A great place to live, study or work: Canadas high quality of life provides a great backdrop for
the success of individuals, families and globally engaged companies. According to the OECDs
Better Life Index, Canada has the highest quality of life in the G-7 and second-highest in the
OECD. The Economist Intelligence Unit ranks Vancouver, Toronto and Calgary among the
worlds top five cities for livability.