Professional Documents
Culture Documents
Canada
Its land area is almost 3.6 million square miles
and it has 10 provinces and three territories. In 1973
its control was with British. It became a separate
nation in 1867. Its constitution was organized until
1982. Today it is a leading member of British
common wealth.
• Canada’s economy
Canada people have highest standard of living
in the world. Consumer taste and wealth are
similar to us. Approximately two third of
Canadian people have owned their homes.
Large number of people own durable goods
such as radio, refrigerator, telephone,
washing machine. Its GDP growth was in 3-
4%. Canada has positive balance of payment.
Canada trading partner is US. Canada has
64% of imports and 87% of exports. Canada
economic growth based on export of
agriculture grains and on production, and on
export of natural resources such as minerals,
oil, gas, and forest products. It’s the 10th largest
manufacturing nations in the world. The us
has more
FDI in Canada, since 1988 its investment has
doubled and Canada has invested up to $101
billion.
• Competition
International business 1
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
• Competition ACT
A Canadian federal law, which regulates
anticompetitive practices and prohibits
actions that will substantially lessen or
prevent competition; it is similar to US
antitrust laws
• Franchization in Quebec
• Banking and finance
Banks in Canada offers wide range of
services. Six large Canadian chartered banks
with extensive national branch networks.
There have maintained 90% of nation banking
industry assets. Smaller banks response to
action of central bank. This institution directly
responsible for nation’s monetary actions:
1) regulating credit and currency. 2)
Controlling and protecting value of Canadian
dollar. 3) Regulating general level of
production trade, price, and employment
within the scope of monetary policy. The bank
of Canada buys and sells foreign exchange
and sets the interest rate that is charge to
commercial bank. The Canadian banks are
also responsible for issuing country note and
coins and manage the federal debt.
International business 2
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
Labor relations
Labor relations are governed by federal and
provincial labor legislation. Canada federal
law covers areas such as wages, employment
practice, work safety, and labor dispute.
• Unions
In Canada approximately 30% of work force is
unionized while workers are free to accept or
reject the union membership but in some
cases they must accept membership in order
to keep their jobs.
• Working conditions
Through out all provinces specified wage rate
is adjusted. Wages and salaries are similar to
USA. Pension plans provide benefit for retired
people. Benefits include life insurance,
Medical insurance, and providing subsidy for
house and food. No gender differences in
Canada.
• Investments
The investment Canada act came into effect
from June 30, 1985. It is designed to create
welcome climate for foreign investment and
loosening previous restrictions but at the
same time some regulation remain in effect
that investment in certain area is restricted.
There are some provincial reasons that
restricted investment in particular areas like
individual should have Canadian residence
for at least one year.
Investment Canada ACT (ICA)
An act designed to create for foreign investment
by significantly loosening previous restrictions
Canada’s multinationals
Canada has multinationals company and they
have trade powers. Canada multinational
companies are Nortel network and Bombardier are
all well known in us. 20 Canadian owned
companies, their sale is near to $45 billion, and
International business 3
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
Marketing in Canada
International business 4
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
• Distribution practices
Canadian industrial characterized as short
marketing channel with direct producer to
user distribution. Canadian industry
dominated by few large scale enterprises. The
consumer goods are more diffused than
industrial market and use of marketing
intermediaries is often necessary. Consumer
market requires representation in number of
commercial centers.
Wholesale and retail trade are important forms
of distribution because of wide dispersion of
customers wholesale trade is necessary and
retail trade count for over $277 billion in sales
annually.
• Exporting
• Franchising
Canada is foreign dominant market for us
franchiser. Currently there are over 300
franchises operating and having 10,000
franchising units in Canada. Canadian banks
offering wide range of services to franchisers.
Mexico’s economy
Mexico with a land area of 760,000 square miles
.This country is divided into 31 states and federal
district. Earlier political constrain but since world
war two government become stable and during
presidency of Carlos Salinas and Ernest zedillo
relations with US have become more strong.
International business 5
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
• MNE investment
The climate for foreign investment in Mexico
has grown increasingly in recent years.
Although there were strict controls on foreign
investment during the 1970, regulation
introduced in 1989 reversed many of these
restrictions.
One of the major reasons for the increase in
FDI is the privatization campaign that began in
1982 and which has picked up speed since
then.
• Labor
Labor is plentiful, inexpensive, which is
carefully utilized.
Approximately 40% work force is unionized.
In industrial operations almost 80% work
force is unionized.
International business 6
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
International business 7
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
• Petroleum cluster
Mexico’s petroleum industry accented a 10
per cent of all exports in 2000. The country
has the second largest proven oil reserves
after Venezuela and is the word’s fifth largest
producer.
The largest firm is state-owned petroleum
Mexicans (premix) which is the world’s largest
crude oil producer and 81st largest firm.
It has work force of 135000 employees and
assets of nearly 60 billion. Including pipelines,
refineries, tankers, aircraft and rail cars.
• Automotive cluster
The global auto industry is currently
undergoing worldwide restructuring.
In this process Mexico is emerging as a major
car and truck producer.
Mexico has a strong rich resource base
supporting its automotive cluster.
There are also strong supporting industries
and a well-developed infrastructure in the
automotive cluster.
International business 8
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai North America Chapter # 18 (page 511-539).
International business 9
Alan M. Rugman, Richard M. Hodgetts