CANADA

HOMELAND OF EQUALITY, JUSTICE & HAPPINESS

PEST Analysis of Canada

Political factors:

• Complex political system.

• Democratic system maintains at all level.
• People can participate in all decision-making process.
• Three level of government – federal, provincial and local government.
• Constitutional monarchy also exists.
• Constitution limits the power of the queen.
• Can follow market economy as a democratic country.
Cost, Risk and Benefit
Political
Costs
 Recently Canada has dropped from the 10 least corrupted countries.
Risks
 In Canada there is no such political issue at this moment which effect on business
Benefits
 Canada is a democratic country.
 Follow free economic market.
 One of the least corrupted country.
 Canada ranked 12 in CPI ranking.
 Good political condition attract investors to invest in Canada.
PEST Analysis of Canada

Economic factors:

• Canada is one of the wealthiest countries in the world

• Canada is within the top 10 trading nation in the world signed in FTA, NAFTA, OECD and WTO
• Canada’s economy is very much stable
• Highly dependent on US
Cost, Risk and Benefit
Economical
Costs
 Tax rate is high
 administrative cost is high
Risks
 Changes in international exchange rates
 Volatile commodity markets, inflation, contraction in availability of credit can affect
 Highly depends on USA
Benefits
 Economically stable
 Rapid growth of developing economies
 Purchasing power increasing
PEST Analysis of Canada

Social factors:

•Peaceful country
• Education
• Education helps us career success
• Employment and working condition
• Job security
• Health services
• Food insecurity
Cost, Risk and Benefit
Social
Costs
 Canada has a social cost of greenhouse gases.
Benefits
 Strong Endowment fund comes from students.
 Education planning and student aid.
 Canada's medical insurance is compulsory, and the company bears patient treatment cost when it needs.
 Employment insurance.
 Housing benefits
 Family benefit
Cultural of Canada
Education: People most likely to complete their education in post-secondary.

Religion: The majority of population are Christian Catholicism.

Political structure: Political of strong democratic tradition.

Social structure: Social structure belonging of resource basis.

Language: The country languages of French and English, but also majority speak English.
Cost, Risk and Benefit
Cultural
Costs
 People in Canada not that much concern about future risk
 some inequality and discrimination
Risks
 There is some difference in their English accent
 People in Canada follow etiquette manners. as a result, anything against their manner can be rejected by them.
Benefits
 In Canada, people follow individualism. They do their task alone. They are active people
 People of the Canada are well educated.
PEST Analysis of Canada

Technological Factor:

• Strong technological sector

• Better research and educational sector
• Agriculture technological sector
• Better cyber Security
• Investing in technological industry
Cost, Risk and Benefit
Technology
Costs
 Need enough money for innovation technology
Risks
 Technology errors
 Cyber security and privacy
 Resource risk
 Control change
 Capacity risk
Benefits
 Save time
 Cost efficiency
 Better communication
 Innovation in many fields
 Automation
 CPI Canada ranked 12 in corruption perception index

This is How CPI Creating Barrier in Attracting FDI

• Large economy
• One of the least corrupted country in the world
• The taxation and immigration policy is stable for foreigners
• Advance high education system at a global level
• One of the largest oil reserve country in the world
Hofstede’s Dimension
80%

58%
52%
48%
39% 36%
Overall Attractiveness Of Canada
• Great FDI performance
• Good position in CPI
• Politically risk free country
• Economically stable country
• Good high- tech infrastructure
• Easy access with Mexico and US market
Allies and partners of Canada
1. USA
2. UK
3. Australia
4. New Zealand
Trade Relations With Other Country
Canadian Government Intervene in Market
Tariffs
• Impose tariffs on certain USA aluminum to protect local aluminum producers.

Subsidies
• Canadian government provide wage subsidies to ensure employee wages.
• Provide billions to the oil, gas and coal companies.

Antidumping Policies
• The object is to protect domestic products from unfair foreign competition.

Local Content Requirements

• Canada produce oil for themselves as well export oil.
Regional Economic Integration

NATO G7 G20 NAFTA WTO

 Key Local Companies Of Canada

Brookfield Suncor Energy WestJet Lululemon Athletica Fairmont

Asset Hotels and Resorts
Management
Key Resources of Canada
• Metal ore ( nickel, gold, silver and copper)

• Huge amount of fresh water.

• Oil. Third highest oil reserve country in the world.

• Natural gas. Canada has enough natural gas to meet country’s needs for next 300 years.

• Coal. Fifth largest coal reserve country.

Geographical Location of Canada
• Canada is the second largest country in the world

• Occupies most of the northern part of North America

• Covering the huge land area from the United States in south to the Arctic Circle in the north.

• The country is stretches 6 time zones

• Divided into 10 provinces and three territories.

• In Canada’s far north lies the frozen Arctic. Here, ice, snow and glaciers dominate the landscape

• Canadian Shield is one of world’s largest geological continental shields.

5 interesting fact about Canada
• 30% of the world freshwater can be found in Canada because its lots of rivers and lakes.

• Canada has the world’s longest coastline with three different oceans the Atlantic, Arctic and
Pacific.

• Majority of Canadian can speak French and English.

• Almost world’s 70% maple syrup comes from Canada.

• Police force of Canada hands out positive ticket to the young people for good work.