BUSINESS ENVIRONMENT

Presentation 1 (LO3)

CANADA – The macro environmental factors

Deepa sri I I- BA (HONS)IB 05 I 02.11.2016

COUNTRY PRESENTATION
CANADA
CANADA
 INTRODUCTION
In this presentation I am going to say about the country profile,
map of the country, macro economic factors like population,
inflation and GDP , political system and legal systems, social
and cultural systems like symbols, literature music and sports,
ease of doing business, economic freedom Ranking , natural
resources, primary , secondary and tertiary industies, imports
and exports and india canada relations.
 COUNTRY PROFILE

capital Ottawa

Largest city Toronto

Capital English, French

government federal parliamentary

representative democracy under
constitutional monarchy
Population 36,286,425

Currency Canadian dollar ($) (CAD)

 Contd…
• Canada is a country in the northern half of North America.
• It the world's second largest country by total area and the fourth-largest
country by Land area.
• The country is officially bilingual at the federal level.
• It is one of the world's most ethnically diverse and multicultural nations,
the product of large-scale immigration from many other countries.
• Its advanced economy is eleventh largest in the world , relying chiefly
upon its abundant natural resources and well-developed international trade
networks.
• Canada is a developed country and has the tenth highest nominal per capita
income globally as well as the ninth highest ranking in the Human
Development Index.
• It ranks among the highest in international measurements of government
transparency, civil liberties, quality of life, economic freedom, and
education.
 MACRO ECONOMIC FACTORS

i). POPULATION
• Canada has been predisposed to be a very open society with regards
to immigration, which has been the most important factor in its
historical population growth.
• Canadians comprise about 0.5% of the world's total
population, with an estimated population of 36,286,425 by
the Q3 of 2016.
• The population density of the habitable land in Canada can be
modest to high depending on the region.
 ii).GDP
• The OECD provides data for example comparing labour
productivity levels in the total economy of each member
nation. In their 2011 report Canada's Gross Domestic Product
(GDP) was $CDN 1,720,748 million.
• In the International Monetary Fund's (IMF) quarterly World
Economic Outlook released in April 2015, the IMF forecast
that Canada’s real gross domestic product (GDP) would grow
2.2 percent. In the July World Economic Outlook the IMF
forecast that Canada's real GDP would grow by 1.5 per cent in
2015.
• According to CTV News real estate accounts for half of all
GDP growth.
 iii). INFLATION
• The Bank of Canada, a federal crown corporation, has the
responsibility of Canada's monetary system.
• The inflation-targeting has been adopted by "most advanced-world
central banks“.
• They established a set of inflation-reduction targets in order to keep
inflation "low, stable and predictable" and to foster "confidence in
the value of money," contribute to Canada's sustained growth,
employment gains and improved standard of living.
• Inflation is measured by the total consumer price index (CPI).
• According to the Bank of Canada announcement, in the first quarter
of 2015, the total Consumer price index (CPI) inflation was about 1
per cent. This reflects "year-over-year price declines for consumer
energy products.”
• Core inflation in the first quarter of 2015 was about 2 per cent with
an underlying trend in inflation at about 1.5 to 1.7 per cent.
 LEGAL SYSTEM
• The Canadian legal system has its foundation in the
English common law system with some influence from Scots
Law, inherited from being a former colony of the United
Kingdom and later a Commonwealth Realm member of
the Commonwealth of Nations.
• The legal system is bi-jurisdictional, as the responsibilities of
public (includes criminal) and private law are separated and
exercised exclusively by Parliament and the provinces
respectively.
• Quebec, however, still retains a civil system for issues of
private law (as this domain falls within the exclusive
jurisdiction of the provinces).
 POLITICAL SYSTEM

• The politics of Canada function within a framework

of parliamentary democracy and a federal
system of parliamentary government with strong democratic
traditions.
• Canada is a constitutional monarchy, in which
the Monarch is head of state.
• The country has a multi-party system in which many of its
legislative practices derive from the unwritten conventions of and
precedents set by the United Kingdom's Westminster Parliament.
 SOCIAL SYSTEMS
• Social programs in Canada include all government
programs designed to give assistance to citizens outside of
what the market provides.
• The Canadian social safety net covers a broad spectrum of
programs, and because Canada is a federation, many are run
by the provinces.
• Canada has a wide range of government transfer payments to
individuals, which totaled $176.6 billion in 2009.
• Only social programs that direct funds to individuals are
included in that cost; programs such as medicare and public
education are additional costs.
 CULTURAL SYSTEMS

• Canada's culture draws influences from its broad range of constituent

nationalities, and policies that promote a "just society" are constitutionally
protected.
• Canada has placed emphasis on equality and inclusiveness for all its
people. Multiculturalism is often cited as one of Canada's significant
accomplishments, and a key distinguishing element of Canadian identity.
• In Quebec, cultural identity is strong, and many commentators speak of
a culture of Quebec that is distinct from English Canadian culture.
• However, as a whole, Canada is in theory a cultural mosaic—a collection of
several regional, Aboriginal, and Historically, Canada has been influenced
by British, French, and Aboriginal cultures and traditions.
• Through their language, art and music, Aboriginal peoples continue to
influence the Canadian identity ethnic subcultures.
 SYMBOLS

Canada's national symbols are influenced by natural, historical, and

Aboriginal sources. The use of the maple leaf as a Canadian symbol
dates to the early 18th century. The map leaf is on depicted
Canada's current and previous flags, and on the Arms of Canada.
The Great Seal of Canada is a governmental seal used for purposes
of state, being set on letters patent, proclamations and
commissions, for representatives of the Queen and for the
appointment of cabinet ministers, lieutenant governors, senators,
and judges. Other prominent symbols include the beaver, Canada
goose, common loon, the Crown, the Royal Canadian Mounted
Police, and more recently, the totem pole and inuksuk.
 LITERATURE

• Canadian literature is often divided into French- and English-

language literatures, which are rooted in the literary traditions
of France and Britain, respectively.
• There are four major themes that can be found within
historical Canadian literature; nature, frontier life, Canada's
position within the world, all three of Canada's ethnic and
cultural diversity are reflected in its literature, with many of its
most prominent modern writers focusing on ethnic life.
• Arguably, the best-known living Canadian writer
internationally is Margaret Atwood, a prolific novelist, poet,
and literary critic. which tie into the garrison mentality.
 MUSIC

• The Canadian music industry is the sixth largest in the world

producing internationally
renowned composers, musicians and ensembles.
• Music broadcasting in the country is regulated by the CRTC.
• The Canadian Music Hall of Fame established in 1976 honours
Canadian musicians for their lifetime achievements.
• The national anthem of Canada, "O Canada", was originally
commissioned by the Lieutenant Governor of Quebec.
• The text was originally only in French, before it was translated to
English in 1906.
 SPORT

• The roots of organized sports in Canada date back to the 1770s. Canada's official
national sports are ice hockey and lacrosse. Seven of Canada's eight largest
metropolitan areas – Toronto, Montreal, Vancouver, Ottawa, Calgary, Edmonton
and Winnipeg – have franchises in the National Hockey League (NHL) .
• Canada does have one Major League Baseball team, the Toronto Blue Jays, one
professional basketball team, the Toronto Raptors, three Major League
Soccer teams and four National Lacrosse League teams. Canada has participated in
almost every Olympic Games.
• Other popular and professional spectator sports in Canada
include curling, Canadian football and rugby league; the latter is played
professionally in the Canadian Football League (CFL) and League 1.
• Golf, tennis, baseball, skiing, cricket, volleyball, rugby union, Australian Rules
Football, soccer and basketball are widely played at youth and amateur levels, but
professional leagues and franchises are not widespread.
 EASE OF DOING BUSINESS
Topics DB 2017 DB 2016 Change in DB 2017 DB 2016 Change in
rank Rank rank DTF (% DTF (% DTF (%
points) points) points)
Overall 22 20 2 78.57 78.79 -0.22
Starting a business 2 2 98.23 98.23
Dealing with 57 53 4 73.66 73.70 -0.04
construction
permits
Getting electricity 108 105 3 63.76 63.76
Registering property 43 43 75.40 75.40
Getting credit 7 7 85.00 85.00
Protecting minority 7 6 1 76.67 76.67
investors
Paying taxes 17 15 2 88.86 88.86
Trading across 46 46 88.36 88.36
borders
Enforcing contracts 112 95 17 54.35 56.54 -2.19
Resolving 15 15 81.43 81.36 0.07
insolvency
 ECONOMIC FREEDOM RANKING
• Canada’s economic fundamentals remain strong, well supported by solid
protection of property rights and an independent judiciary that enforces the
rule of law effectively.
• The country’s commitment to open-market policies that facilitate global
trade and investment flows has been strong, and the economy has
demonstrated admirable resilience in the face of recent years’ international
and domestic challenges.

Economic Freedom Snapshot

• 2016 Economic Freedom Score: 78.0 (down 1.1 points)

• Economic Freedom Status: Mostly Free
• Global Ranking: 6th
• Regional Ranking: 1st in North America
• Notable Successes: Rule of Law, Open Markets, and Regulatory Efficiency
• Concerns: Control of Government Spending
• Overall Score Change since 2012: –1.9
 NATURAL RESOURCES

• Canada is one of the primary global exporters of forest products. The country is
home to eight major forest regions and features 30 percent of the boreal forests in the
world.
• Overall, the forests in Canada make up 10 percent of the overall global forest cover.
Eastern Canada cuts down a section of the forests for pulp and paper products
manufacturing, while Western Canada is in charge of manufacturing wood products.
• Canada has an abundance of natural resources, including minerals, rare earth
elements, wildlife, coal and hydropower.
• Minerals and elements mined in the country are iron ore, silver, copper, nickel and
gold. Other natural resources include fish, molybdenum, diamonds and potash.
• Most of the known natural resources in Canada are from Southern Canada, but the
country is slowly expanding its exploration to Canada's Arctic region. Some of the
discovered natural resources in Northern Canada are metallic ores and oil and gas
resources.
Industry, in its broadest sense, includes all economic activity,
but for convenience commentators divide it into three sectors:
primary, secondary and tertiary. Primary manufacturing
involves harvesting natural resources;
secondary, manufacturing; and tertiary, the service industries.
All these elements make up Canada's industrial system, which
has become increasingly complex over time. Canada is
considered a “developed” country in that it has, as part of its
economy, a developed industrial base.
 PRIMARY INDUSTRY

The primary sector includes establishments involved in the

exploitation and initial processing of natural resources. For
example, coal mining includes establishments that break, wash,
grade or otherwise prepare coal for use as a fuel. Other
examples include mining precious and other metals, oil and gas,
and forestry.
 SECONDARY INDUSTRY

The secondary, or manufacturing, sector is made up of primary

and secondary manufacturing establishments. Primary
manufacturing companies process raw materials to produce
such supplies as iron and steel, pulp and paper,
and petroleum products. Secondary manufacturing
establishments are those that produce consumer goods
(e.g., clothing) and capital goods (i.e. goods used to make
other goods, for example, machinery, equipment, parts).
 TERTIARY INDUSTRY

The tertiary, or service industries, sector includes

establishments in both the private and public sectors. These
range from food services to laundries to the Bank of Canada.
These are establishments that do not harvest or make goods,
but provide services to the population (including the sale of
commodities and goods to people).
 IMPORTS OF CANADA

Canada imports mostly consumer goods (22 percent of

total imports), motor vehicles and parts (18 percent),
electronics (12 percent), industrial machinery and equipment
(10 percent), metal and non-metallic mineral products (8.5
percent), chemicals (8 percent) and energy products (6
percent).
 EXPORTS OF CANADA

The top exports of Canada are Crude Petroleum, Cars ,Petroleum

Gas, Refined Petroleum and Vehicle Parts, using the 1992 revision
of the HS (Harmonized System) classification. Its top imports
are Cars ,Crude Petroleum ,Vehicle Parts ,Refined Petroleum
and Delivery Trucks.
 CANADA – INDIA RELATIONS

• Canada–India relations, or Indo-Canadian relations, are the

longstanding bilateral relations between Canada and the Republic of
India, which are built upon a "mutual commitment to democracy",
"pluralism", and "people-to-people links", according to the
government of Canada.
• Being fellow members of the Commonwealth of Nations, Canada
and India exchange high commissioners rather than ambassadors.
• Canada's High Commission to India is located in New Delhi, whilst
India maintains one in Ottawa.
• Canada maintains consulates in three Indian
cities: Mumbai, Bangalore and Chandigarh and trade offices in an
additional four: Ahmedabad Kolkata, Chennai, and Hyderabad.
India operates consulates in Vancouver and Toronto.ent of Canada.
 TRADE
• Canada and India enjoy a prosperous trading relationship.
India celebrated the year 2012 as year of India in Canada to
promote business, cultural and political relations with India.
• Despite the warm relationship, trade between Canada and
India is less than their potential. Nevertheless, total trade
between the two countries grows steadily over the past 5 year.
• Canada and India are currently holding negotiations on the
Comprehensive Economic Partnership Agreement (CEPA) to
improve the trade relations between the two countries.
• As of March 2015, the two countries held their 9th round of
negotiations in New Delhi.