Foreign Business In Canada Essay

Foreign Business are extremely beneficial to the Canadian economy. Granted, they open up foreign markets and provide vast investment opportunities, the biggest benefit however, is the goods and services in which they make accessible. I deemed this factor as the most beneficial due to the fact that the Canadian market is arguably not as cheap or as expansive as some of the other prominent global markets which makes foreign goods quite valuable to our country. This is quite commonly seen, take China for example, they make up about 4.10% of our global exports and 7.10% of our imports. With that in mind, Canadian businesses have the opportunity to capitalize on the cheaper manufactured goods from China by selling their goods at a higher price in relation to their actual cost. On a small scale example, if a Canadian business were to buy 100 plates from China, costing a dollar a plate, and were to sell those plates for one dollar and fifty cents, that
would equate to an extra dollar for every two plates sold. That would translate to expense of 100 dollars, an income of 150 dollars and a profit of 50 dollars which is half of the business’s expenses. On a larger scale however, and through multiple business and goods this could subsequently become very profitable for our business, thus providing strength and positive benefits to the Canadian economy.

In relation to how a business can make profits from selling cheaper goods for higher prices, these goods ultimately have to be imported. Moreover, tariffs, which are taxes paid to import foreign goods into a country, are for the most part present amongst Canada’s trading partners. The opportunity to make money from tariffs has the potential to be very lucrative for Canada, especially in regards to countries such as the United States, who make up about 66.28% of our imports. Canada is heavy reliant on the United States, which translates to Canadian businesses importing a considerable amount of their goods. Additionally, due to the fact that the rate at which Canada imports from the United States is quite high, Canadian businesses can not only strengthen its partnership and relationship with the States, but also make additional profits through tariffs on top of the additional profits that are generated through the selling of their goods which is an added benefit to our economy.

Lastly, this is arguably the most obvious reason, but foreign business help the Canadian economy by introducing new and otherwise unseen products to Canadian markets and consumers.
Businesses such as Apple, Sony and Mcdonalds are massively successful in Canada and are in high demand amongst Canadian consumers. In the case of Apple, according to the Business Inquirer magazine, 39% of all Canadians own an apple product which is quite astounding. Not only does businesses such as Apple help the Canadian economy through the profits in which they generate, they also provide consumers with products and technology that are not generally made here in Canada such as Big Macs and Iphones. This can translate to innovation in workplaces, access to higher quality goods, can impact the supply and demand components of business, and can influence consumers to spend more money which ultimately boosts the Canadian economy and demonstrates why the variety of products foreign business provide is the most beneficial to the Canadian
economy.