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Investing In CanadaInvesting In Canada - Factors that are attractive for direct investmentinCanada.Canada is the second largest country in the world, occupying close to10 millionsquare kilometres of land bounded by the Atlantic, Pacific and Arcticoceans.Canada shares a 6,000 kilometre border and the five largest freshwaterlakes inthe world with the United States. Known as the Great Lakes, theyprovide a routeto the Atlantic via the St.- Lawrence Seaway, permitting direct accesstointernational markets.More international companies are investing in Canada. The stock offoreigndirect investment (FDI) in Canada has increased steadily over the pastfiveyears to reach over $130 billion last year. Investor confidence is high.International companies are discovering what firms in the United Stateshaveknown for decades: it pays to invest in Canada. There is a governmentcommitmentto attract foreign direct investment. Canada's government provides acompetitive,welcoming climate for international business. It is committed to fiscalresponsibility, deficit reduction and job creation.The following are some essential points all of which prove Canada is afavorablechoice: Domestic market; wage competitiveness; work force quality;Internationalbusiness skills; raw materials; energy costs; infrastructure; businessservicesand legal environment.Domestic MarketCanada's per capita purchasing power is second only to that of theUnited States,among the G-7 countries, and the OECD expects Canada to lead theindustrializedcountries in near-term economic growth. Inflation is below two per centandforecast to remain low. Cost of money is lower than it has been fordecades.Exports are at record high, having increased by 14 per cent in 1993over 1992.Under free trade, Canadian-based companies have increased their marketshare of
 
the Canada-U.S. market. Further, the Canada-U.S. Free Trade Agreement(FTA),together with the North American Free Trade Agreement (NAFTA) whichcame intoforce on January 1, 1994, gives Canadian-based companies anunparalleled accessto 365 million people, forming an economy larger than that of theEuropeanCommunity. The combined 1993 GDP value of the Canada-Mexico-U.S. marketwas inexcess of $8.5 trillion.Competitive Wages and Benefit Rates:Many international corporations find the Canadian work force to behighly cost-effective. On average, wages in Canada's business centers are lowerthan thosein nearly all major business centers around the world. Hourly wages ofCanadianproduction workers have risen only 5.4 percent since 1990. Canadianmanufacturing wage rates showed the second slowest growth among G-7countries in1992, averaging 2.6 percent. In contrast, hourly increases in BritainandGermany have been 12.4 and 14.3 percent, respectively.Educated and Skilled Work ForceThe cost-effectiveness of the Canadian work force becomes especiallyapparent inthe high level of skills and education of the workers. Canada leads theG-7countries in advanced education, with about two-thirds of its 20 to 24-year-oldsenrolled in post-secondary education.Canada's 67 universities and colleges produce more than 25,000 graduatesannually in engineering, the applied sciences, the physical sciences andmathematics, while its technical institutes provide 11,000 graduatesannually inareas relating to electronics and telecommunications.Canadian operations enjoy low turnover and absenteeism rates, and thedays lostto work stoppages have been cut by more than one-half in the past twoyears.Major international firms have also won many productivity improvementsin theirCanadian operations through work place initiatives in labor-managementrelations.International Business SkillsCanada is a land of immigrants. Employers will find pools ofexperienced
 
workers who also offer fluency in foreign languages, knowledge ofinternationalcultures and business practices, and networks of business contacts inthe keyAsian, European and American markets. Canada is an effective bridgebetweenNorth America and Europe. Canadian business practices and laws are ablend ofAmerican and European cultures. Canada's metric system of measurementmeans thatCanadian manufacturers can readily meet requirements for Europeanstandards andmeasures. In addition, new government initiatives, such as the SkillInvestmentProgram, are further enhancing Canada's ability to train and retrainworkers fortomorrow's growth industries.Abundant Raw MaterialsCanada's rich mineral reserves and natural resources, coupled with itscost-effective ability to extract and harvest, enable Canada to be a leaderinexports of both raw and processed commodities. Canada is the world's topproducer of newsprint and zinc, as well as the second largest producerof nickel,pulp and potash. Canadian-based processors and manufacturers can enjoyreducedtransportation costs by being close to these globally competitivesources ofsupply.Vast, low-cost Energy SuppliesIn addition to raw materials, Canada's rich mineral deposits involvemineralfuels and river systems that have been tapped for massive energyreserves. Theseinclude huge deposits of oil and gas, coal and uranium, as well asvirtuallyunlimited hydroelectric generating capacity. Canada is one of two G-7countriesthat are self-sufficient in oil supplies. Canada has the lowestelectricitycost of all the G-7 countries, and is the only G-7 member with enoughnaturalgas to be a net exporter. The resulting benefits of Canada's energyabundance toindustry are widespread. For example, low-cost hydroelectric powerenabledCanada to become a leading exporter of aluminum and aluminum products.Sophisticated and Efficient InfrastructureAs a consequence of the geographical vastness of Canada, thecommunications and
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