...Ch.2 * What is an economic system? Business organizations exist in an economic system or environment that provides employment for workers, pays taxes to as many as three levels of government (in Canada), and supports many charities. The system in which sellers and buyers can exchange goods and services is called a market. The local farmers market is a market. Farmers bring their fruits and vegetables to a single location to attract customers to that location. A stock exchange, like the Toronto Stock Exchange, is another example of a market. This is a market in which people can buy or sell shares. This chapter will review how the different countries of the world are divided between those that follow the concepts of command economies - socialism and communism - and those that have adopted a market economic system - capitalism and a mixed economy. The pursuit of social, economic, and political goals; the treatment, use, and motivations of the workforce; and market dynamics are different under each of the two approaches. Many countries have changed their economic systems. The strength of an economic system, or the economy overall, has a major impact on business. Canada enjoys a mixed economy. As such, economic concepts such Gross Domestic Product (GDP), productivity, unemployment rates, inflation, Consumer Price Index (CPI), and the overall business cycle, need to be carefully and continuously monitored, understood, and analyzed. Learning Goals Key Concept/Learning Goal...
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...From the surface, when we think of Canadian culture compared to United States culture; we perceive them to be one in the same. However, there are very distinct differences in their culture and business. Canada’s communication patterns are low key. Reserve, understatement, diplomacy and tact are key attributes and contrast sharply with the more direct approach of many Americans (Business Structures in Canada and Doing Business in Canada, n.d.). According to Global Road Warrior (n.d.), Canadians prefer a direct approach and value building long-term business relationships. They may discuss and negotiate the terms of a contract, but they prefer to receive direct information pertaining to their costs and other conditions. In a Canadian organization team members have the power to make decisions, and management is more of a collaborative effort than a hierarchy. In management style, Canadian managers are not expected to manage in an authoritarian or paternalistic manner but are, nonetheless, expected to be decisive. Management style could be characterized as informal and friendly with managers preferring to be seen as one of the guys, rather than as an aloof figure who stands apart from everybody else (Business Structures in Canada and Doing Business in Canada, n.d.). Canadians also value time and efficiency. Once a contract is agreed upon they prefer not to change the terms. Canadians generally believe that authority can be challenged. This could be a potential issue especially...
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...Canadian-International Business Performance Analysis Andleeb.Waizi(1110348) University Canada West Professor: Raghabendra Gosh Hajra BUSI321 05/10/2014 Canadian-International Business Performance Analysis Canada’s prosperity is engaged to economic opportunities beyond its borders. Therefore, Canadian government has worked well to reinforce and develop Canada’s trade relationship internationally to promote a business environment. This relationship will give Canada a competitive advantage in large and rapid growing economies by attracting overseas investment and diversifying the Canadian trade portfolio. In such efforts, the government has launched the most determined trade plan in Canadian history; only in just seven years, Canada has executed free trade agreements with nine countries and is in conciliation with thirty more. In addition, Canada has publicized a significant agreement-in-principle with the 28-nation European Union which will open the trade markets in the EU and Canada. Canada always values the strength of multilateral trading system and support trade liberalization and share membership in many multilateral economic organizations. These organisations include: the G-20, the Asia-Pacific Economic Cooperation (APEC) forum, the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO). The key drivers that foster the growth of world economies up to 52% over the last decade are: fallen barriers to trade, investment opportunities...
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...CANADIAN BUSINESS LAW “REASONABLE PERSON” Assignment # 2 GBMP 511-02 Dated: 18-04-2012 REASONABLE PERSON Question: What is the concept of “Reasonable Person” mean? What is the test that determines whether someone has met that test in law? The Concept: A Reasonable person is a hypothetical person who exercises qualities of attention, knowledge, intelligence, and judgment that society requires of its members for the protection of their own interest and the interests of others. Defining "Reasonable" Being "reasonable" means having the faculty of reason, acting rationally governed by reason. The behavior can be called "reasonable" if the activities can be valued as fair, just, or equitable. The person must be honest, moderate, sane, sensible, and tolerable. "Reasonable" implies a certain standard of valuation. It is a standard for guiding conduct. Reasonable Person This phrase is a personification of the description of "reasonable". Thus, the "reasonable man or person" can be understood as a phrase used to denote a suppositional person who exercises those mentioned qualities which society demands as stated above. Applying the Reasonable Person Standard: The reasonable person does not always appear in the Process of evaluating human behavior. There are several judicial patterns demanding a judgment of reasonableness without expressly mentioning the reasonable man as a personification, such as: reasonable aids, care, diligence, doubt, compensation, (market) value...
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...=========================================== When reporting a crime to local police, you should insist on receiving the Comprobante de Denuncia as confirmation that a report has been made. Police officers may speak only Spanish. Passports and Visas A valid Canadian passport is required for Canadians intending to visit Cuba. The passport must be valid for at least one month beyond the date of your expected departure from Cuba. Canadians must also carry a tourist card (or visa), or a business or student visa. The tourist card is generally provided by tour operators or airlines, or can be obtained from a Cuban government office in Canada in the case of privately organized flights. It can also be purchased at certain airports in Canada. Health Insurance Since May 1, 2010, travellers must present proof of health insurance in order to enter the country. Upon arrival, travellers may be required to present an insurance policy, insurance certificate, or medical assistance card valid for the period of their stay in Cuba. Those who do not have proof of insurance coverage may be required to obtain health insurance from a Cuban insurance company when they arrive. Temporary residents also have to hold valid health insurance policies. Although proof of Canadian provincial health insurance is sufficient for visitors to enter Cuba, your provincial plan may cover only part of the costs and will not pay the...
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...requirements and premium payments, respectively – currency forwards typically do not require an upfront payment when used by large corporations and banks. However, a currency forward has little flexibility and represents a binding obligation, which means that the contract buyer or seller cannot walk away if the “locked in” rate eventually proves to be adverse. Therefore, to compensate for the risk of non-delivery or non-settlement, financial institutions that deal in currency forwards may require a deposit from retail investors or smaller firms with whom they do not have a business relationship. The mechanism for determining a currency forward rate is straightforward, and depends on interest rate differentials for the currency pair (assuming both currencies are freely traded on the forex market). For example, assume a current spot rate for the Canadian dollar of US$1 = C$1.0500, a one-year interest rate for Canadian dollars of 3%, and one-year interest rate for...
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...Canada from responding to a rapidly changing economic environment. Discuss what the weaknesses are and how they have hampered Canadian competitiveness. Finally, offer your own assessment, drawing on course materials, of this argument. There are numerous economic weaknesses that the author has argued. This essay mainly focuses on these flaws and how they are hampering Canadian competitiveness. Firstly majority of the companies in Canada are foreign owned or foreign controlled. From manufacturing sector including auto, chemical, and electronics to giant retail stores such as Wal-mart, Costco, Sears, Hudson Bay, etc are all foreign owned. In automobile sector GM, Ford, Chrysler, Toyota, Honda, etc dominates the auto industry in Canada. The automotive industry employs 158,302 people in automotive assembly and component manufacturing, and another 336,212 in distribution and aftermarket sales and service[1]. These foreign operated companies are extremely aggressive in nature, tough for domestic companies to compete and have monopoly over Canadian market. In addition they are usually productive than domestically controlled companies. Equally important it seems that foreign industry has assisted Canadian economy to become stronger and employ Canadian, however Government studies revealed that foreign enterprises had generally employed Canadian capital to expand their resource and manufacturing concerns rather than bringing new capital into the country to fund growth[2]...
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...Using the Accenture document on governance presented with the Alcan case, place Canadian Shield in the appropriate quadrant. According to the Accenture document, I would place Canadian Shield within the efficient, predictable operator category. The slow rate of change and need to compete on operational efficiencies characterized by most companies in this quadrant is detailed by the following quote from the case authors. “Sustainability for Canadian insurance companies greatly depended on investments in projects that increased customer service and improved operational efficiency.” This comment is aligned with the predictable operator company practices and is evidence that in order to gain a competitive advantage in the Canadian insurance industry it is vital that operational efficiencies are realized through better IT solutions at Canadian Shield and its parent company, Assurance Centrale Inc. (AC). In the key decision going forward, is this Seamus' call? If not, whose decision is it? Who should make the decision? Under what decision area(s) in the Weill & Ross governance model does this decision fall? As the leader of Information Systems at Canadian Shield, one of many subsidiaries of Assurance Centrale, Seamus Reynolds was tasked with piloting a new information system that could potentially replace the IS’s at all of Assurance Centrale’s regional offices. Five years after starting this project he was feeling the weight of the responsibility for a project that could...
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...A Project Report on Importing Wheat from India to Canada Global Entrepreneurship Submitted to : David Colaluca Submitted By | : Arshvir Gill (100805346) | | Jasmeet Grewal (100815274) | Date : 16 March 2012 George Brown College Reason for selecting Wheat Wheat is the staple food of millions of people. Its cultivation started during Neolithic probably as early as 6,000 to 7,000 year ago. Wheat is the dominant food grain of world commerce with 682 million tons productions, 638 million tons consumption, and 136 million tons trade with 197 million tons ending stocks. Wheat is the most common food product and it is widely used by each group of society. So, we plan to import wheat from India because India stands at number 2nd after China in wheat production. It contributes 81 million tons. India's production rate expected to raise high during current years. The wheat harvesting area in India is the world's largest. It is cultivated from a sea level up to even 10,000 feet. More than 95 percent of the wheat area in India is situated north of a line drawn. India, the second-biggest grower of wheat, allowed private companies to export the grain for the first time in four years, Food Minister K.V. Thomas said. A panel of ministers permitted overseas sales of 2 million metric tons of wheat. Varieties of wheat in India Dara Kalyan Mexican 147‐Avg. Desi (Durum) Economic, financial and marketing reasons for the choice of wheat ...
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...Identification of Problems Pixonix is a Canadian company that makes major purchases in the United States. The American and Canadian dollars are always changing, and the company is faced with the difficult decision of how they will react to the constant change in currency exchange rates. Pixonix is very susceptible to failure and losses as a result of this fluctuating exchange rate. This is known as the foreign exchange risk. At present, the Canadian dollar is valued above the US. dollar, but if the Canadian dollar dips, it could have a unfavorable fiscal outcome for Pixonix when it comes time to purchasing new tools and software in US dollars. On the other side of this, if the Canadian dollar continues to rise above the US dollar, Pixonix may have trouble selling their products to US consumers. There are a number of ways that Pixonix can insure against the foreign exchange risk, but Cain has no previous experience in these strategies. Analysis of Problems The exchange rate fluctuation is a concern for any Canadian company because the US market also drives the Canadian market. That being said, Pixonix is affected by the exchange rate fluctuation specifically because it licensed tools and software for an annual cost of $7.5 US. This is a significantly different number in Canadian dollars if the exchange rate of $1 Canadian is worth $1.0717US. Cain is concerned about the fluctuating Canadian dollar because she needs to convert Canadian dollars to US dollars to pay for the tools...
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...November 27, 2012 Business 100, AB Investors University of the Fraser Valley SD College Sector 32C, Chandigarh Dear Business 100 – XYZ Investors, We have responded to your request regarding an analysis of the Canadian Tire Corporation and in this report you will find the information about the Company and their recent corporate activity. We have identified various points that will be useful in your decision to invest in this company. We have included information regarding Canadian Tire’s history, the products and services offered by them, and an analysis of the internal and external factors that affect the Corporation’s operations. We have also assessed the critical issues the company is currently facing along with their major implications. In order to see the direction in which the company is head, we also evaluated their vision, mission and long term objectives and strategies, followed by a sound strategy assessment. We have also analysed the company’s marketing strategy in regards to three of the products that they offer and also an overview of the marketing mix pursued by the company in general. We collected data regarding their financials of the past three fiscal years, and checked their sources of capital. Lastly, we have provided conclusions and our recommendations about the company keeping in mind the overall shape of the company’s future operations. We hope that this report guides you in your decision to invest in this company. Sincerely, Star Investors This letter...
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...unemployment and the rise of the Canadian dollar? Canada’s financial stability depends on the health of America’s economy, as international trade accounts for 45% of Canada’s Gross Domestic Product (GDP) and 79% of exports are to the United States. Canadian and American unemployment rates are positively correlated for that reason, as exemplified in early 2009. Canada’s unemployment rate quickly steepened as the United States’ rate gradually increased to about 10% (refer to graph 1 and 2). During this time, Canada’s growing trade surplus became a deficit in only a few months (refer to graph 3). From this data, one can determine that Canada’s exports decreased rapidly due to rising economic turmoil in the United States. The effects on the dollar seemed to positively correlate. Canada’s dollar decreased in value compared to the US dollar; however, concluding that the reason for this change was due to the U.S. unemployment rate is inaccurate. The ever-changing exchange rate of the dollar is determined by many factors. As of 2011, Canadian and American unemployment rates remain high at approximately 7.3% and 9%, respectively. In addition, a trade deficit continues to exist in Canada. Nevertheless, the Canadian dollar is gaining strength over the American dollar, which contrasts with the weakened exchange rate in 2009 when the same conditions existed (refer to graph 4). Therefore, rising U.S. unemployment can have a positive or negative affect on the Canadian dollar. I will examine how...
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...Introduction: Clearwater Seafoods (CS) is a seafood exporting firm based in Canada. The firm is suffering value declining from international trade due to the appreciation of Canadian dollars. Hence, the company’s value declined for 35% that fails to distribute dividends under income trust since 2002. The company has to hold a conference for shareholders to establish an appropriate strategy to address the value declining problem and change its unit holder’s pessimistic shareholding sentiment. This report will initially identify the root of foreign exchange risk that Clearwater Seafoods is encountering. After then, it will also discuss about the business risks that the firm needs to overcome. Further, we will try to find out relevant strategy to solve the company’s current issue. CS Foreign Exchange Risk As CS conducts international seafood trading, therefore, the firms receives foreign currencies and transfers its revenue into Canadian dollars. Additionally, the firm arranges its foreign exchange risk management operations which provide a considerable extra income for CS. However, there are significant risk will bring along from its foreign exchange management. Foreign exchange risk can be divided in to three types which are translation, transaction and economic risk. For CS, it source of foreign exchange risk can be as follows The first sort of risk is the translation risk. This occurs from the potential loss due to the moment when foreign currency transferred into home...
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...identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2008, Ivey Management Services Version: (A) 2008-06-05 THE COMPANY tC On Friday November 2, 2007, Mikayla Cain, chief financial officer of Pixonix Inc., sat in her office and pondered the impact of the strong Canadian dollar on her firm’s projected financial results. The Report on Business today stated that the Canadian dollar had hit another record, jumping to US$1.0717 from the previous day’s close of $1.0512 after a stronger-than-expected jobs report reduced the odds of an interestrate cut. The Canadian dollar had already been the world’s best-performing major currency this year, increasing 25 per cent against the U.S. dollar and almost seven per cent in the past month alone. Cain knew she would have to understand the impact of the strong dollar on her firm’s cash flows and the tools available to manage the company’s currency risk. No Pixonix was a graphic design company that operated in...
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...airlines for mutual benefit. Airline services can be categorized as being intercontinental, domestic, regional, or international. Airline industry in Canada has two major carrier families---Air Canada and Canadian Airlines International Ltd. Both major carriers are affiliated through ownership with regional or specialized local carriers. While Air Canada and Canadian carry passengers and cargo on scheduled and charter flights domestically and internationally, their affiliates generally serve the different regions of the country. The airline industry makes a significant contribution to the Canadian economy. In 2014, for example, the industry generated $7.6 billion in operating revenues and employed 53,000 people. Moreover, the airlines carried 32 million passengers on domestic and international flights. 2.PESTE analysis 2.1 Political The airline industry is very susceptible to changes in the political environment. Canadian political environment is stable and airline industry operates in a highly regulated political environment where passengers’ safety is paramount. Canadian government published a policy that attracts more customers because passengers are allowed to use electronic products when planes take off and land. The second policy is an “open skies” policy, meaning Canadian or American carriers could offer services on any transborder routes at any time. It also intensifies the activities of the North American hub-and-spoke...
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