Question

As canadians we are living in a global economy . Explain how as individuals we are exposed to international business and why canadian businesses must develop a global view ?

Answer 1

                        Canada has a highly developed market economy which is dominated by the service industry. The major feature of the Canadian economy is that about three-fourth of the employees of Canada are Canadians themselves. With a competent manufacturing sector and a highly globalised economic base, Canadian economy has been among the top trending nations with a globalised economy. International trade makes up to a large part of the Canadian economy with USA remaining the major trade partner contributing to almost 75% of exports and imports of Canada. With a stable economic base, Canada has been hailed as the best destination for international business firms.

                                    Although the economy of Canada is stable, there are many factors that restricts the international business in Canada. The regulations placed on foreign investments are higher which means that most of the international business that wishes to take a hold of the Canadian economy does not get a chance to do so. The economy is also more dependent of its own people as employees and with lesser foreign share in the employee sector, this would be detrimental in attracting much of the international collaborations. The major factor remains the lions share of impact of America on the economy of Canada. Most of the business undertakings have deem dominated by the American business and about 75% of the exports and imports happens with America. These factors reveal that although the economy has the potential to attract foreign investment and business, it still remains less exposed to the global economy and international business.

                                    The following are the reasons why the Canadian business must develop a global view

· Once the business goes more global, it would be capable of improving the foreign exchanges and thus could strengthen the economy further.

· It could bring variety in the business environment which could be advantageous for the consumers of Canada

· There would be international exchange of consumer culture which could bring in substantial changes from being fully dependent on the domestic structure

· The contributions of a stable economic international investment could mean that the economy of Canada would be saved in case of domestic externalities

· This could mean that the people would have variety in the jobs and could improve the international exposure to jobs

                                                     Canada has a stable economy. The fears of international business hampering the stability of the internal economy is a big factor that prevents the Canadian economy from doing international business on a large scale. But with the above advantages, it is clear that international business could bring more benefits to the nation and the people, especially the workforce.