Investing In Canada

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Term Paper Title	Investing In Canada
# of Words	2519
# of Pages (250 words per page double spaced)	10.08

                           Investing In Canada
-   Factors that are attractive for direct investment in Canada.
Canada is the second largest country in the world, occupying close to 10 million square kilometres of land bounded by the Atlantic, Pacific and Arctic oceans. Canada shares a 6,000 kilometre border and the five largest freshwater lakes in the world with the United States. Known as the Great Lakes, they provide a route to the Atlantic via the St.- Lawrence Seaway, permitting direct access to international markets.

More international companies are investing in Canada. The stock of foreign direct investment (FDI) in Canada has increased steadily over the past five years to reach over $130 billion last year. Investor confidence is high. International companies are discovering what firms in the United States have known for decades: it pays to invest in Canada. There is a government commitment to attract foreign direct investment. Canada's government provides a competitive, welcoming climate for international business. It is committed to fiscal responsibility, deficit reduction and job creation.

The following are some essential points all of which prove Canada is a favorable choice:
Domestic market; wage competitiveness; work force quality; International business skills; raw materials; energy costs; infrastructure; business services and legal environment.

Domestic Market
Canada's per capita purchasing power is second only to that of the United States, among the G-7 countries, and the OECD expects Canada to lead the industrialized countries in near-term economic growth. Inflation is below two per cent and forecast to remain low. Cost of money is lower than it has been for decades.

Exports are at record high, having increased by 14 per cent in 1993 over 1992.
Under free trade, Canadian-based companies have increased their market share of the Canada-U.S. market.
Further, the Canada-U.S. Free Trade Agreement (FTA), together with the North American Free Trade Agreement (NAFTA) which came into force on January 1, 1994,  gives Canadian-based companies an unparalleled access to 365 million people, forming an economy larger than that of the European Community. The combined 1993 GDP value of the Canada-Mexico-U.S. market was in excess of $8.5 trillion.

Competitive Wages and Benefit Rates:
Many international corporations find the Canadian work force to be highly
cost-effective. On average, wages in Canada's business centers are lower than
those i...

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