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5 Reasons that Canada is Attractive to Foreign Investors

Rise of the Economy (GDP) & Transport Infrastructure

Most Educated Workforce & Low Costs with Low Risks

Corporate Governance
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You might have heard the phrase “America is the land of opportunity to build the
American dream”. However we disagree, we believe this has changed over the years and the
new land of opportunity is Canada. Although the US has an economy that is far higher than that
of its neighbor to the north, both countries have comparable average per capita incomes; and
despite the fact that Americans generally pay higher taxes, Canadians receive better social
benefits. With such amazing benefits Canada is a huge win for foreign investors to not only
provide their money to the country, but also to live in it.
Being the second largest country in the world, Canada now has a population of about 38
- 39 million people. Furthermore, Canada ranks 9th in terms of the world's largest economy
which continues to rise via 15 free trade treaties with 49 nations that have a cumulative GDP of
US$60 trillion & approximately 1.5 billion customers. (Why Invest in Canada?, n.d.). Canada
offers entrepreneurs preferential access to the markets. Canada is in a good position to act as a
major international trading hub. Canada has the best global aviation transport network, and its
coastline terminals offer direct oceanic connectivity to South America, Europe, and Asia (Why
Invest in Canada?, n.d.) The maritime sector in Canada consists of local shipping companies
that offer both national and global shipping services, in addition to foreign commercial shipping
that make dock calls at significant Canadian ports. (Why Invest in Canada?, n.d.) Four
geographic regions can be used to analyze the local industry: the Great Lakes/St. Lawrence,
the Atlantic, the Northern, and the Pacific West Coast. (Why Invest in Canada?, n.d.) The U.S.
is also easily accessible from the Great Lakes. (Why Invest in Canada?, n.d.) Canadian
architecture enables continuous distribution network and corporate operations when paired with
safe commercial routes and gates. Maritime transport is crucial for both the National Human
Resource Development (NHRD) and local replenishment in the northern region. (Marine
Transportation, n.d.) The western Arctic as well as the eastern Arctic are two distinct maritime
ecosystems that are used in northern Canada. (Marine Transportation, n.d.) Maritime activities
in the western Arctic region are mostly conducted in the Mackenzie River Watershed (which
includes the Mackenzie River and Great Slave Lake), Alaska, the Arctic coast and islands, and
Richmond, British Columbia, occasionally. (Marine Transportation, n.d.) For government
entities, local governments, and citizens, the administration of Nunavut organizes the cargo
ships for the distribution of sealift, (army aids, such as arms, transportation, military peoples)
supplies of dry cargo, and bulk petroleum from the eastern Arctic. Other importers can use
sealift services with the same contractual restrictions. (Marine Transportation, n.d.) This
essentially demonstrates the enormous significance of Canada's rivers. Additionally, it
emphasizes the significance of this by explaining how the NHRD as well as the vast majority of
the northern region depend on it for replenishing. The fact that the canals can readily reach so
many locations both inside and outside of Canada is a tremendous benefit for the country.
Service delivery is now extremely quick and simple, both within the nation and outside.
Canada is considered to be one of the leading countries in the workforce, coming in the
top 15 for most highly skilled workers. (25 Countries Where People Learn Fast, Think on Their
Feet, and Accomplish a Lot at Work, Ranked, 2018) A major reason for this is the
industrialization age. Later on became Canada’s knowledge economy through the help of their
spectacular universities. As industrialization grew, additional people from the countryside moved
to the metropolis in search of better jobs in the industries. Laborers were educated to carry out
specific duties in order to improve the overall productivity of the plants and to take advantage of
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new opportunities in the marketplace. (The rise of the machines: Pros and cons of the Industrial
Revolution, n.d) Company owners separated their staff into various groups, with each group
concentrating on a distinct task. Iron, coal, and steel, the raw resources used in manufacturing
of products, were obtained by certain parties and carried to the workshops, while other groups
ran various machinery. (The rise of the machines: Pros and cons of the Industrial Revolution,
n.d) While some teams of workers were tasked with improving the efficiency of the entire
production, others were tasked with repairing machines when they broke down. (The rise of the
machines: Pros and cons of the Industrial Revolution, n.d) Additional teachers and trainers were
required to pass on specialized skills as the companies expanded and the workforce became
more skilled. Later on this gradually created its path towards Canada’s knowledge economy
through the help of their spectacular universities. Canada has 3 major universities that fall under
the top 50 category for best in the world. University of Toronto being at first place ranking 25th
in the world, McGill university at 31st ranking in the world, and university of British Columbia
coming in at 45th in the world. (Lane, 2022) After years of coming out of the industrial revolution
era, and years of unskilled labor, Canadians finally had the opportunity to have access to
knowledge eventually allowing them to receive or become skilled laborers. Furthermore,
“TORONTO, ON – Wednesday, June 22, 2022 – The Economist magazine today ranked the
MBA program at York University’s Schulich School of Business #1 in Canada and 40th in the
world in the magazine’s annual survey of the world’s top 100 MBA programs.” (The Economist
Ranks #1 in Canada, 2022) This once again reminds us of the incredible achievements of the
school system of Canada, leading on to create some of the best skilled workers of our nation.
According to Business Insider, Canada ranks in 12th position tied with Australia. (25 Countries
Where People Learn Fast, Think on Their Feet, and Accomplish a Lot at Work, Ranked, 2018)
Other sources however, put Canada in 8th place. (USNews, n.d) Although, the majority of
sources claim Canada to be in the top 15 for leading countries with the most educated
workforce, they rank the country in the top 3 overall. (USNews, n.d) Furthermore, it even used
to be #1 in 2021. (USNews, n.d) A major reason for this is the low costs and risks of the country.
For example the marginal effective tax rate (METR) for Canada which is currently about 13.8%,
and the smallest within G7 and well below the median for the OECD. (Why Invest in Canada?,
n.d.) Some other examples are, “Canada being first among G7 countries in terms of political
stability, Canada ranking 3rd in the G7 and 13th globally on the Corruption Perceptions Index
2021, and Canada having the top six safest banks in North America. These same six banks are
ranked among the top 35 in the Global Top 50 of the world's safest banks.” (Why Invest in
Canada?, n.d.) What this is basically telling us is that for one, Canada has an amazing political
stability. Politics play a significant role in how foreign business is conducted. Political stability,
and elected officials' attitudes toward foreigners and international trade, or the level of
government economic interference are all factors that can affect a company's capacity to
successfully join overseas markets. (Why Invest in Canada?, n.d.) Secondly, it tells us how
Canada is ranked one of the top few countries in terms of having a low corruption rate in the G7
summit. (Why Invest in Canada?, n.d.) Less corruption is very vital, this is because less
corruption means less chances of fraud in the company, or in any sort of businesses. One major
reason for such low corruption is auditing, this is the process of fact checking a company. Both
political stability, and low corruption rates show how Canada comprises itself through the
broader spectrum of becoming an international phenomenon for business opportunities, and
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also shows how skilled the workers must be in order to maintain the country's image and further
keep it rising to become even better. Canadian students frequently have a tendency to aspire
for extremely high grades in their final year before graduating. The intense competition in many
colleges is to blame for this. Many institutions have minimum overall requirements of 80 to 90,
however most students usually surpass those benchmarks by scoring above 95. The annual
scholarships they get are the cause. Any grade below a 95 will qualify for a one-time
scholarship, but you can only receive a yearly scholarship if you graduated with an overall
average of at least 95%. Many students keep these habits built which later on make them
amazing workers in the future, eventually due to the amazing work of these students, the GDP
per capita increases.
Another major reason to invest in Canada is due to the corporate governance. Corporate
governance is the process of ensuring that a company behaves together in a transparent,
equitable, and accountable manner throughout all of its transactions. (Corporate Governance,
2021) The board of directors of a firm is accountable for it. The British legal system framework
served as the basis for Canada's corporate governance principles, which has been strongly
impacted by American advances. (Corporate Governance in Canada, 2021) Despite the
numerous similarities among corporate governance principles in the UK and the US, while there
are variances, Canadian policy typically falls in the middle. (Corporate Governance in Canada,
2021) For instance, a Canadian firm normally has less directors on the boards than a UK firm
and it is more likely than a US firm to employ a chair who isn't the CEO. (Corporate Governance
in Canada, 2021) This is very beneficial, as this means you would have to convince less people
for a change, you would have less arguments, you make more changes, and on top of all of this
the board of directors can hire professionals who are actually deserving of the post. The
provincial governments of Canada are given sole authority over assets and human liberties
inside their borders by the Canadian Constitution. (Corporate Governance in Canada, 2021)
Therefore, companies have a choice as to whether they want to be incorporated under federal
corporate law or under the corporate laws of any of Canada's provinces. (Corporate
Governance in Canada, 2021) In addition, securities commissioners in Canada's provinces and
territories oversee the country's securities laws. This makes for a strong background check in
case something might be off, or if they may have missed something. It also makes it so there
are less cases of fraud and scams in companies. (Corporate Governance in Canada, 2021)
However, the federal government is working with five provincial governments to create a
collaborative framework for regulating the capital markets. (Corporate Governance in Canada,
2021) This is an amazing feat as it allows for safer trading for consumers and prohibits illegal
capital markets. Legal requirements and industry standards pushed by organizational
stakeholder groups, the press, and expert director bodies like the Institute of Corporate
Directors influence corporate governance mechanisms in Canada. (Corporate Governance in
Canada, 2021) Provincial corporate legislation, securities regulatory frameworks, stock trading
standards, legal principles, and a vast range of additional laws enacted, regulations, and
policies are only a few examples of the origins of legal guidelines. (Corporate Governance in
Canada, 2021) The whole purpose of a corporate governance is to protect businesses from
frauds and scams, Canada having such a great framework for this is a huge benefit for investors
as the likelihood of scams and frauds is incredibly low. Furthermore it's good for the economy
as well because it shows more trust in officials and In a globalized society, effective governance
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enhances economic advantages and speeds up economic transformations. (Good Governance,

n.d.) The board of directors acts as a deliberative body to manage or supervise the
management of the business and affairs of the corporation. (OnePass | Thomson Reuters, n.d.)
The 10 provincial securities authorities are particularly active in aspects of corporate law that
frequently overlap with corporate governance principles. (Corporate Governance in Canada,
2021) This is once again a big bonus as securities authorities basically do this as a form of
background checks, if something is off which does not follow the corporate governance
principles, it is immediately combated. The large percentage of public businesses in Canada
with dominant or leading shareholders, whether through stock ownership or the possession of
numerous rights to vote, has also had an impact on corporate management in that country.
(Corporate Governance in Canada, 2021) This tells us that citizens are understanding the value
and privilege of voting, furthermore they understand the progress certain groups of people make
and are making the right choice with their votes. A nationwide investment company association
established to promote effective governance in firms with shares its affiliates control is one way
that Canadian institutional investors have a significant impact on Canadian corporate
governance policies. (Corporate Governance in Canada, 2021) Meaning that Canadian firms
also play a huge part and have some control over corporate governance. The Canadian alliance
for effective governance, which has about 50 members and includes many of North America's
largest investment firms and manages assets worth close to C$4 trillion, has pursued a planned
program of expressing its opinions and promoting best practices ordinarily without using proxy
conflicts. (Corporate Governance in Canada, 2021) Meaning the best leading business
personals are willing to help smaller firms or any investors just starting off in the Canadian
market.
In conclusion, Canada is the new land of opportunity in order to build the legacy of the
Canadian dream. With huge advantages like the rise of the GDP, the amazing transport
infrastructure, one of the most educated workforce, with low costs & low risks, as well as the
corporate governance all play a huge role for you in your success.
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