Shaping the Development of Business in Canada Essay

Shaping the Development of Business in Canada - Essay Example Additionally, Canada enjoys a better market environment that emanates from political stability and pleasant government policies on business. All these factors promote the development of business in Canada. Hence, despite the growing market competition, business in Canada is vibrant and plays a fundamental role in the economy. Foreign investment is also a significant aspect in Canadian business. Many Canadian companies have adopted a corporate strategy to venture international investment with an aim of increasing their competing advantage in the global economy (Foreign Affairs and International Trade Canada 1). Actually, the total value on Canadian foreign investment supersede that of foreign direct investment in Canada since 1997 (Lennox and Bow 150).Foreign investments in Canada promote access to overseas markets, access to more resources, reduce input costs, new technologies, and provide better support to foreign customers (Frigon 1). Indeed, foreign investment in Canada is both di rect and portfolio with both types bringing significant contribution to the Canadian economy. Actually, foreigners who enjoy the annual interest, income, and dividend payments mostly control Canadian economy. This draws the significance of foreign investment in shaping business in Canada. In addition, resultant technological advancements, new management ideas, and implementation of international trade policies will benefit and shape business in Canada. This guarantees higher productivity, increased exports and employment, superior competitiveness, and rampant growth of the Canadian economy. However, these investments are at risk of political instability, expropriation, uncertain regulations, and weak... This essay approves that the government has adopted and negotiated international agreements that govern international trade and foreign investments. For example, the government of Canada adopts a policy of negotiating and adopting the Foreign Investment Promotion and Protection Agreement that governs bilateral trade activities. Actually, Canada its FIPA model in 2003 with an objective of enhancing clarity in the substantive obligations, disciplining and improving efficiency in the dispute settlement procedures and promoting certainty and transparency in its business environment. The participation in foreign investment guarantees access to diverse markets, new technologies, reduction in input costs, and availability of business resources. These factors lead to business profitability and further business development. This report makes a conclusion that there are a number of features that would significantly shape the development of business in Canada such as Canada’s â€Å"storehouse of resources,† foreign investment, government policies, the role of entrepreneurs and family firms, big business, and banking and finance. However, though all these features are relevant and significant in this context, government policies stand out as the most significant feature. Additionally, there are various government policies relating to business regulations, financial support, international agreements, registration, licensing, and legislations that take important roles in shaping development in business. These policies are subject to changes and apply selectively. All government policies aim at developing domestic and international e- commerce in Canada.