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International Marketing

Topic:

Canada

Submitted To:

Sir Arsalan

Submitted By:

Syed Amad Wajid 110!1!0"1#$

%a&i' Abdul Mateen 110!1!0"111

Mu(ammad Murta'a Butt 110!1!0"1!)

Adnan An*ar 110!1!0"0+,

Anila Is(tia- 110!1!0"1#+

Section .BA/

BBA

t(Semester

ate: 1$"1!"!01,

%istory:

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The first inhabitants of Canada were native Indian peoples, primarily the Inuit (Eskimo). The

Norse explorer eif Eriksson probably rea!hed the shores of Canada (abrador or Nova "!otia)

in #$$$, but the history of the white man in the !ountry a!tually be%an in #&', when ohn

Cabot, an Italian in the servi!e of *enry +II of En%land, rea!hed Newfoundland or Nova "!otia.

Canada was taken for ran!e in #-& by a!/ues Cartier. The a!tual settlement of New ran!e,

as it was then !alled, be%an in #0$& at 1ort 2oyal in what is now Nova "!otia3 in #0$4, 5uebe!

was founded. ran!e6s !oloni7ation efforts were not very su!!essful, but ren!h explorers by the

end of the #th !entury had penetrated beyond the 8reat akes to the western prairies and south

alon% the 9ississippi to the 8ulf of 9exi!o. 9eanwhile, the En%lish *udson6s :ay Company

had been established in #0$. :e!ause of the valuable fisheries and fur trade, a !onfli!t

developed between the ren!h and En%lish3 in ##, Newfoundland, *udson :ay, and Nova

"!otia (;!adia) were lost to En%land.

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2o3ernment

Canada is a federation of ten provin!es (;lberta, :ritish Columbia, 9anitoba, New :runswi!k,

Newfoundland and abrador, Nova "!otia, Antario, 1rin!e Edward Island, 5uebe!, and

"askat!hewan) and three territories (Northwest Territories, =ukon, and Nunavut). ormally

!onsidered a !onstitutional monar!hy, Canada is %overned by its own *ouse of Commons. >hilethe %overnor%eneral is offi!ially the representative of 5ueen Eli7abeth II, in reality the

%overnor%eneral a!ts only on the advi!e of the Canadian prime minister.

4conomy

;s an affluent, hi%hte!h industrial so!iety in the trillion dollar !lass, Canada resembles the @"

in its marketoriented e!onomi! system, pattern of produ!tion, and affluent livin% standards.

"in!e >orld >ar II, the impressive %rowth of the manufa!turin%, minin%, and servi!e se!tors has

transformed the nation from a lar%ely rural e!onomy into one primarily industrial and urban. The

#'4' @"Canada ree Trade ;%reement (T;) and the #''& North ;meri!an ree Trade;%reement (N;T;) (whi!h in!ludes 9exi!o) tou!hed off a dramati! in!rease in trade and

e!onomi! inte%ration with the @". 8iven its %reat natural resour!es, skilled labor for!e, and

modern !apital plant, Canada enBoys solid e!onomi! prospe!ts. Topnot!h fis!al mana%ement has

produ!ed !onse!utive balan!ed bud%ets sin!e #'', althou%h publi! debate !ontinues over how

to mana%e the risin% !ost of the publi!ly funded health!are system. Exports a!!ount for rou%hly a

third of 8

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!onsumer %oods

Imports " partners:

@" -4.'D, China 0.4D, 9exi!o .4D (F$$&)

Trade In Canada:

In F$# Canada was the E@6s #Fth most important tradin% partner, a!!ountin% for #.D of the

E@6s total external trade. In the same year the E@ was Canada6s se!ond most important tradin%

partner, after the @."., with around '.4D of Canada6s total external trade.

The value of bilateral trade in %oods between the E@ and Canada was H-4,4 billion in F$#.

9a!hinery, transport e/uipment and !hemi!als dominate the E@6s exports of %oods to Canada,

and also !onstitute an important part of the E@6s imports of %oods from Canada.

Trade in servi!es is an important area of the E@Canada trade relationship. The value of bilateraltrade in servi!es between the two partners amounted to HF0.' billion in F$#F. Examples of often

traded servi!es between Canada and the E@ are transportation, travel, insuran!e and

!ommuni!ation.

The investment relationship is e/ually hi%hly important. In F$##, European investors held

investments worth HF-4.$ bn in Canada while Canadian dire!t investment sto!ks in the E@

amounted to almost H#&F.0 bn.

Trade barriers:

>hen exportin% to the European @nion (E@), there may be obsta!les that make trade more

!ompli!ated and expensive. They are often referred to as trade barriersJ. "u!h barriers to trade

!an take many forms, and the problems may stem from the European @nion as well as from the

exportin% !ountry.

45amples o& trade barriers are:

Customs duties

Char%es on imports (import !har%es, import deposit s!hemes, minimum pri!e systems,

taxes, other border !har%es)

5uantitative import restri!tions (/uotas) and other measures with e/uivalent effe!t(/uantitative restri!tions, surveillan!e systems, administrative measures and

re/uirements)

Te!hni!al barriers to trade (te!hni!al re%ulations, administrative and other non

!ompulsory provisions)

Export restri!tions

8overnment subsidies

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Compli!ated pro!edures for the re%istration of a new business

orld e!onomi! %rowth is hi%her than it has been for over $ years,

yet the international !ommunity and the world e!onomy is be!omin% in!reasin%ly fra%mented.

>e are in a %lobal maelstrom, in whi!h the only !onstant is !han%e.

The former head of the >orld :ank, ames >olfensohn, re!ently observedK >hile bein% more

inter!onne!ted, it (the world) is now rapidly breakin% into four tiers of varyin% levels of

prosperity and hope.J The first tier !onsists of the ri!h !ountries, whi!h maintain 4$ per !ent of

the %lobal in!ome while a!!ountin% for only F$ per !ent of the worldLs population. Theirdominan!e is bein% !ontested by the emer%in% e!onomies, !omprisin% the se!ond tier of

approximately $ poor and middle in!ome !ountries that are experien!in% sustained %rowth rates

of per !ent or more a year.

Emer%in% e!onomies, su!h as China, India and :ra7il, with their lar%e pools of inexpensive

labour, are be!omin% in!reasin%ly important in the world e!onomy. The emer%in% e!onomies

now represent rou%hly -$D of %lobal 8

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In !ontrast, CanadaLs share of %lobal 8

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Canada need to do to reinvent or reener%i7e Canadian trade poli!y. irst, Canada !an start with

doin% some lon%er term strate%i! thinkin%. "e!ond, Canada re!o%ni7e that our domesti!

re%ulatory re%imes affe!t trade and take steps to redu!e our internal barriers.

Canada trade poli!y has to be based on, and refle!t, our domesti! e!onomi! strate%y, a strate%y

that will in!rease our produ!tivity maintain our !ompetitiveness, and in!rease our investment .

Ac(ie3ing an open economy

;!hievin% an open e!onomy (free trade) in Canada >hile the trend elsewhere in the world

Europe, ;sia East to the free movement of %oods, !apital and people, in Canada, we are half a

!entury ba!k. :ritish Columbia and ;lberta have made a %reat first step with the new TI9;,

whi!h provides a model for other provin!es. *ow !an we expe!t to remain !ompetitive in the

new %lobal e!onomy if we do not %et serious about removin% interprovin!ial trade barriersO

Impro3ing economic integration:

e need to take N;T;

to the next level, in!ludin% by takin% advanta%e of value !hains within North ;meri!a to export

to the rest of the world.

7emo3ing restrictions on &oreign direct in3estment:

2emovin% restri!tions on forei%n dire!t investment and redu!in% rules and re%ulations that

restri!t !ompetition

Cut t(e tari&&s and Borders:

Cuttin% the applied rates of tariffs and redu!in% the border measures we use

Impro3ing domestic customs and port procedures

Improvin% domesti! !ustoms and port pro!edures, redu!in% inspe!tion and other delays, allowin%

%oods to move more freely a!ross the borders.

%armoni'ation or mutual recognition o& standards and regulatory re-uirements

*armoni7ation or mutual re!o%nition of standards and re%ulatory re/uirements. >e need to do

this a!ross the provin!es, but also with the @nited "tates and 9exi!o.

7educe barriers

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Canada6s restri!tive immi%ration system is a maBor obsta!le to !ompanies lookin% to relo!ate

staff a!ross borders. ;nd in a time of labor shorta%es, parti!ularly in the western provin!es

boomin%, allowin% for a!!reditation of forei%n professionals and the simplifi!ation or easin% of

visa re/uirements, should be a maBor priority. 8overnments do not ne%otiate. 1eople and

businesses do, and we need to find ways to make the !rossborder movement of %oods, servi!es

and more effi!ient and less expensive people.

Ta5:

2edu!e the tax burden on Canadian businesses so that they have more money to invest and

in!rease in!entives for !ompanies to invest in resear!h and development. If we redu!e tariffs,

how !an we offset the loss of revenueO >e need to redu!e in!onsisten!ies in our tax systems that

!reate unexpe!ted obsta!les to business.