Shaping the Development of Business in Canada - Essay Example

?Shaping the Development of Business in Canada Just like in any other business location, Canada adopts all the business strategies and objectives with an aim of maximizing its market dominance, competitive advantage, and more so generate maximum profits from the available factors of production. As such, business in Canada is a major contributor and determining factor of the economy of Canada. Nevertheless, just like in all business fields, business in Canada is subject to a number of factors that determine its impact in the economy. There are small business, big businesses, international trade, and foreign investments that characterize the Canadian business front. Government policies through defined government and business organization streamline and govern the business sector in Canada. Indeed, the instituted government policies define the code of ethics in this field and ensure fair competition in doing business. Whereas Canada dominates the international trade by providing safe, high-quality agriculture and food products, there are other business ventures in Canada either by local investors or by foreign investors. However, the goal to make Canada a world leader in food safety and environmental standards remains. With the growth in technology, increasing market competition, and rising demand there is a need to develop business in Canada to adapt with the current and foreseeable market conditions. Some of the features in Canadian business that can shape the development of business in Canada include Canada’s “storehouse of resources,” foreign investment, government policies, the role of entrepreneurs and family firms, big business, and banking and finance. This paper will address the most significant feature in shaping the development of business in Canada. In doing this the paper will briefly highlight a few points on the named features to ascertain the most significant. Indeed, Canada has a storehouse of resources that capitalize its business agenda. Canada has various resources to support its small, big, and international business. The resources will include monetary sources, factories of production, and information on business strategies. The good infrastructure that Canada enjoys guarantees easy access to the markets, production sites, and faster transmission of business information and transportation of goods. 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 direct 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 legal institutions in the foreign nations. As a result, the Canadian government safeguards it Canadian investors abroad by negotiating the Foreign Investment Promotion and Protection Agreement (Foreign Affairs and International Trade Canada 1). This is a bilateral agreement between two trading nations that ensures transparency, legality, and business certainty for Canadian investors. In reality, the government of Canada takes concern on foreign investment as it plays a major role in shaping business in Canada. The impact of small and big businesses in Canada business is unquestionable. These are the actual determinants of the economy because they produce and equally consume in real time. Indeed, the market demand from the population largely influence the market forces hence determine the shape of the business in Canada. Ideally, there is immense respect for Canadian small business that equally establishes their market position and considerably uses the new technology in businesses hence development. With the establishment of the Canada Small Business Financing Program that seeks to increase the availability of loans for establishing, expanding, modernizing and improving small businesses in Canada, their impact of has been felt in the Canadian economy. Actually, the small businesses in Canada provide employment to majority of the population, contribute significantly to the GDP, constitute the greatest Canadian exporters, and thus the backbone of Canadian economy (CBC News 1). Therefore, small and big business are significantly important in shaping the development of business in Canada. Banking and finance are aspects in business whose importance holds the key to the development of any business. Business factors associated with banking and finance will include the supply and control of currency by the central bank, the offering of financial grants to business people, determination of market value, and stock markets. Indeed, the government uses banks and other financial institutions to avail monetary resources to willing and qualified business gurus for purposes of maintenance and expansion. The banking and finance aspects can easily predict the future growth of businesses, their downfall, and the most profitable ventures. In addition, the banks and the financial institutions provide employment, store the money, and present the financial position of the business. Indeed, banking and finance play a significant role in shaping the development of business in Canada as they expose all the financial facts to this development (Chant 1). After a precise consideration of the above features in relation to shaping the development of business in Canada, I find that there is a lot of government influence in this context. Whether the government is legislating laws and regulations to govern the business environment or whether the government is involved in creating and negotiating international trade agreements both initiatives promote business in Canada. Additionally, whether the government is availing financial assistance to the willing and qualified businesspersons, whether the government is regulating resources and monetary policies to apply in business or whether the government is involved in production and exportation of products are crucial aspects that seek to develop business in Canada. As such, the feature of government policies is most significant in shaping the development of business in Canada. The government of Canada policy aims at maintaining macroeconomic stability focusing on competitive advantage, innovation, trade, infrastructure, and business development (Vickery and Murphy 67-68). The government has been in the process of instituting internal laws and regulations to govern business operations in Canada. This it has achieved by conditioning business people to apply for business licenses that require businesses to meet set business, health, and environmental standards. These regulations define registration, importing, exporting, marketing, managing employees, and transportation of goods that sets forth the agenda of business development. Indeed, the government requires the registration of a business to feature in various levels of government under different conditions. The Canadian government requires a business group to expose its plans and stick to the set rules of the business. In doing this, the government is able to analyze all the businesses, ensure fair competition and compliance, and substantial development. Additionally, the government allows federal incorporation that allows businesses to operate under the same name universally, hence promoting the development of the business. The government certifies business operations by granting permits and licenses to the legally qualified business thus warranting their going concern, goodwill, and thus development. In addition, the government guarantees ethics in business by issuing the human resource regulations that ensures equitability and no discrimination in matters regarding to hiring, labor standards, wages, and employment equity, maternity and parental leave. This ensures that workers enjoy doing business and hence promoting productivity and development. Moreover, the government institutes environmental regulations that require all business groups to maintain and conserve the environment. This ensures that business obtains a going concern, takes place in a safer and conducive environment and hence increasing productivity and thus development. There are health and safety regulations that ensure the safety of business products, services and work stations. The importation and exportation rules ensure quality of business products in Canada. Indeed, the Canadian government opposes import controls and issues no licenses to imports though the Export and Imports Permits Act allows the government to initiate trade restrictions (Whittle 77). The high quality products establish a market advantage and subsequent sales turnover. The balance between the imports and exports ensures business development. The government of Canada provides requisite resources for purposes of business development. For example, the government provides business information that ensures good business strategies, marketable options, business and market treads, taxes, and how to maximize resources and profits. Additionally, the government provides financial grants, loans, incentives, and assistance to boost or initiate businesses in Canada. This happens through the Business development bank of Canada. The government equally offers loan guarantees, tax refunds, wage subsidies, and equity investments. Different businesses qualify for various financing. Most importantly is that these financial grants and loans guarantee development of businesses by availing the required resources for the business to start up or advance. As such, the government accords different financial programs to suit various financial needs of the business environment. For example, the Canada Small Business Financing Program (CSBFP) seeks to increase the availability of loans for establishing, expanding, modernizing, and improving small businesses in Canada. This is the epitome of developing businesses. However, stringent measures and qualifications apply in accessing this financial aid for business development. In addition, 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. The government equally adopts a business communication policy where any changes or evolution in government’s programs, legislation, guidance, investigations and audits are communicated through official channels of communication like government websites, official publication, and media releases. This policy ensures reliability of business information and hence promoting business development through the strategies and business ideas in these communications. In developing international e-commerce, the government is working with other countries and member nations of the Organization for Economic Co-operation and Development (OECD). On the other hand, in promoting domestic e-commerce, the government of Canada established an e-commerce strategy in 1998 that promotes the unity of purpose within the provinces, the territories, and the private sector with an aim of developing business. Additionally, the E-commerce Task Force in Canada has the mandate to develop e-commerce (Alijani and Wright 1). Moreover, the federal government is in the process of amending the Exchange Act to protect the customer when a retailer sells the purchaser’s promissory note that in the recent form compels the customer to bear liability in such a case. Notable is the fact public policies drive the retailing and management strategies in Canada though they considerably lack the overall retailing policy (Rea and McLeod 256). In conclusion, I observe that the growth in technology, rise in population, increasing market demand and competition warrant development in business in Canada. There are a number of features that would significantly shape the development of business in Canada such as Canada’s “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. 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