GDP Per Capita - Milken Institute...U.S. Competitive Advantages Global Competitiveness Report,...

GDP Per Capita

Constant 2000 US$

Source: World Bank 2006

Country US$

Japan 38,609

United States 36,655

United Kingdom 26,363

Canada 24,688

Germany 23,705

France 23,432

Mexico 5,968

Russian Federation 2,286

China 1,323

India 538

Exports of Goods and Services

As Percent of GDP


Country Percent

Canada 38.3

Germany 38.0

Russian Federation 35.0

China 34.0

Mexico 30.1

France 26.0

United Kingdom 24.7

India 19.1

Japan 11.8

United States 9.6

Exports to NAFTA

Merchandise Exports

20072006200520042003200220012000199919981997

40

30

20

10

0

-10

-20

Percent Change, Year Ago

CanadaMexico

Source: Global Insight

U.S. Imports on the Rise

Level of Imports from Selected Countries


0604020098969492908886

100

80

60

40

20

0

US$ Billions

Mexico CanadaJapanS. KoreaChina

U.S. Imports on the Rise

As Percent Share of all U.S. Imports


0604020098969492908886

25

20

15

10

5

0

Percent

Mexico CanadaJapanS. KoreaChina

U.S. Trade Balance With Mexico Merchandise Trade


0604020098969492908886

50

40

30

20

10

0

5

0

-5

-10

-15

-20

US$ Billions US$ Billions

Exports to Mexico - LImports from Mexico - LTrade Balance - R

U.S. Imports from Mexico 2006

Source: ITA

Electric

Machinery;

Sound & TV

Equip

24%

All Other

30%

Mineral Fuel,

Oil; Bitumin

Subst.; Mineral

Wax

17%

Vehicles and

Parts

17%

Nuclear

Reactors,

Boilers,

Machinery

12%

Other

Vegetables and

Preparations

23%

Other

Beverages,

excl. fruit juice

4%

Peppers

7%

Livestock and

animal

products

10%

Other

Agricultual

Products

8%

Fruit and

Preparations

19%

Beer

18%

Tomatoes

11%

U.S. Agricultural Products from Mexico 2005

Source: USDA

Top World Oil Producers* 2005

Source: EIA

*Table includes all countries total oil production exceeding 2 million

barrels per day in 2005.

Total Oil Production

(million barrels per day)

1 Saudi Arabia 11.1

2 Russia 9.5

3 United States 8.2

4 Iran 4.2

5 Mexico 3.8

6 China 3.8

7 Canada 3.1

8 Norway 3.0

9 United Arab Emirates 2.8

10 Venezuela 2.8

Rank Country

Top World Oil Net Exporters* 2005

Source: EIA

*Table includes all countries with net exports exceeding 1 million

barrels per day in 2005.

Net Oil Exports

(million barrels per day)

1 Saudi Arabia 9.1

2 Russia 6.7

3 Norway 2.7

4 Iran 2.6

5 United Arab Emirates 2.4

6 Nigeria 2.3

7 Kuwait 2.3

8 Venezuela 2.2

9 Algeria 1.8

10 Mexico 1.7

Rank Country

U.S. Trade Balance With Canada Merchandise Trade


0604020098969492908886

100

80

60

40

20

0

0

-5

-10

-15

-20

-25

-30

US$ Billions US$ Billions

Exports to Canada- LImports from Canada- LTrade Balance - R

High-Tech Exports As Percent of GDP

0402009896949290

6

5

4

3

2

1

0

Percent

United States

Canada

Mexico


IndiaRussian Fed.

CanadaMexico

U.KFrance

JapanGermany

ChinaU.S.

250

200

150

100

50

0

US$ Billions

High-Tech Exports Level*

*Data is for most recent year available


Foreign Direct Investment

Net Outflows as a Percent of GDP


Country Percent

Canada 4.8

United Kingdom 3.8

France 2.3

United States 2.2


Japan 0.7

Mexico 0.5

India 0.2

China 0.1

Germany -0.3

Foreign Direct Investment

Net Inflows as a Percent of GDP


Country Percent

United Kingdom 3.4

China 2.8

Mexico 2.6


France 1.2

United States 0.9

India 0.8

Canada 0.6

Japan 0.2

Germany -1.3

Current Account Deficit Increases United States

050095908580

200

0

-200

-400

-600

-800

-1000

1

0

-1

-2

-3

-4

-5

-6

-7

US$ Billions Percent

Balance (L)Share of GDP (R)

Source: BEA

Comparison of Hourly LaborCost Index Relative to U.S.

JapanU.K.

IrelandCanada

Russian F.Mexico

China India

120

100

80

60

40

20

0

U.S. = 100

Source: McKinsey&Co.

Labor Productivity Output Per Hour in Manufacturing, 2004

U.K.CanadaGermanyFranceJapanU.S.

190

180

170

160

150

140

130

1992 = 100

Source: BLS

Cost Advantage Relative to U.S. Manufacturing, (U.S.= 0)

JapanGermany

ItalyU.K.

NetherlandsFrance

CanadaSingapore

20

15

10

5

0

-5

-10

Percent

Source: KPMG

Cost Advantage Relative to U.S. Research and Development, (U.S.= 0)

GermanyJapan

U.K.Italy

FranceCanada

NetherlandsSingapore

40

30

20

10

0

-10

-20

Percent

Source: KPMG

Cost Advantage Relative to U.S. Software, (U.S.= 0)

GermanyJapan

U.K.Italy

FranceNetherlands

CanadaSingapore

40

30

20

10

0

-10

-20

Percent

Source: KPMG

Cost Advantage Relative to U.S. All Sectors, (U.S.= 0)

GermanyJapan

U.K.Italy

FranceNetherlands

CanadaSingapore

25

20

15

10

5

0

-5

-10

Percent

Source: KPMG

Prevalence Rates of EntrepreneurialActivity Overall Business Owners (Nascent + New Established)

JapanFrance

GermanySweden

U.K.Italy

SwitzerlandU.S.

CanadaChina

30

25

20

15

10

5

0

Percent

Source: Global Entrepreneurship Monitor

Supply of Offshore Talent McKinsey Global Institute

According to Survey of 83 HR Professionals:

• In low-wage counties, on average only 13% of

university graduates are suitable to work in a multinational company

• Driven by China and India, only 7% of the

workforce in low -wage countries has at least a college degree

• Fewer than 10% of potential job candidates in China were suitable for work in a foreign

company

Tertiary Education Attainment

As Percent of Population

ItalyMexico

FranceGermany

U.KKorea

JapanU.S.

CanadaRussian Fed.

60

50

40

30

20

10

0

Percent

Source: OECD

Burden of Government Regulation

(1 = Burdensome, 7 = Not Burdensome)

Russian Fed.Mexico

IndiaGermany

Korea, Rep.U.K.

Canada China

U.S. Japan

4.0

3.5

3.0

2.5

2.0

1.5

1.0

Score

Mean = 3.1

Source: The Global Competitiveness Report ‘06-’07

Quality of Math and Science Education

(1 = Lag Far Behind Most Countries, 7 = Among Best in the World)


MexicoChina

Russian Fed.U.S.

U.K.Germany

Korea, Rep.Canada

JapanIndia

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Score

Mean = 4.0

Technological Readiness

(1 = Lags Behind Other Counties, 7 = Is Among World Leaders)


Russian Fed.China

MexicoIndia

Korea, Rep.U.K.

CanadaU.S.

GermanyJapan

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Score

Mean = 3.9

Value Chain Presence

(1 = Companies Primarily Involved in Resource Production, 7 = Do

More than Just Produce)

Source: The Global Competitiveness Report ’06-’07

Russian Fed.China

CanadaMexico

IndiaKorea, Rep.

U.S.U.K.

JapanGermany

7

6

5

4

3

2

Score

Mean = 3.8

Company Spending on R&D

(1 = Do not Spend Money on R&D, 7 = Spend Heavily on R&D)


MexicoRussian Fed.

ChinaIndia

CanadaU.K.

Korea, Rep.Germany

U.S.Japan

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

Score

Mean = 3.4

University Collaboration

(1 = Minimal or Nonexistent, 7 = Intensive and Ongoing)


Russian Fed.Mexico

IndiaChina

Korea, Rep.Canada

U.K.Japan

GermanyU.S.

5.5

5.0

4.5

4.0

3.5

3.0

Score

Mean = 3.3

Availability of Scientists and Engineers

(1 = Nonexistent or Rare, 7 = Widely Available)


ChinaMexico

Russian Fed.Korea, Rep.

U.K.U.S.

GermanyCanada

IndiaJapan

6.5

6.0

5.5

5.0

4.5

4.0

3.5

Score

Mean = 4.4

Researchers

Per Thousand Employed

Source: OECD

IndiaMexico

ChinaKorea, Rep

GermanyRussian Fed.

CanadaFrance

U.S.Japan

12

10

8

6

4

2

0

Per Thousand Employed

2004200320022001200019991998199719961995

12

10

8

6

4

2

0

Thousands

Biotech Patents Issued in U.S. All Universities, Cumulative

Capacity for Innovation

(1 = Low, 7 = High)


MexicoRussian Fed.

ChinaIndia

CanadaKorea, Rep.

U.K.U.S.

JapanGermany

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

Score

Mean = 3.5

Broadband Subscribers

Per 1000 People


Country Per 1000 People

Canada 164.3

Japan 145.8

United States 129.0

France 108.2

United Kingdom 102.5

Germany 83.7

China 16.5

Mexico 3.1


India 0.65

U.S. Competitive Advantages Global Competitiveness Report, 2006-2007

Category Rank/125

Utility Patents 1

Brain Drain 1

Venture Capital Availability 1

Personal Computers 2

Quality of Scientific Research Institutions 2

Extent of Marketing 2

Company Spending on R&D 3

Time Required to Start a Business 3

Tertiary Enrollment 4

University/Industry Collaboration 4

Source: The Global Competitiveness Report ‘06-07

U.S. Competitive Disadvantages Global Competitiveness Report, 2006-2007

Category Rank/125

Business Costs of Terrorism 111

Government Surplus/Deficit 101

Government Debt 73

Organized Crime 55

Foreign Ownership Restrictions 43

Quality of Math and Science Ed. 42

Favoritism in Decisions of Government Officials 39

Prevalence of Trade Barriers 36

Judicial Independence 36

Real Effective Exchange Rate 35


Mexico’s Competitive Advantages Global Competitiveness Report, 2006-2007

Category Rank/125

FDI and Tech Transfer 20

Primary Enrollment 21

Cooperation in Labor-Employer Relations 27

Foreign Ownership restrictions 31

Value Chain Presence 38

Financial Market Sophistication 38


University/Industry Collaboration 40

Laws Relating to ICT 42

Quality of Management Schools 43


Mexico’s Competitive Disadvantages Global Competitiveness Report, 2006-2007

Category Rank/125

Business Costs of Crime and Violence 117

Organized Crime 114

Reliability of Police Services 105

Agricultural Policy Costs 102

Quality of Math and Science Ed. 101

Burden of Government Compliance 94


Availability of Scientist and Engineers 85

Public Trust of Politicians 85

Quality of the Education System 82


Canada’s Competitive Advantages Global Competitiveness Report, 2006-2007

Category Rank/125

Number of Procedures to Start a Business 1


Soundness of Banks 5

Quality of Management Schools 4

Personal Computers 5


Financial Market Sophistication 9

Availability of Scientist and Engineers 9

Utility Patents 10

Quality of Scientific Research Institutions 11


Canada’s Competitive Disadvantages Global Competitiveness Report, 2006-2007

Category Rank/125

Real Effective Exchange Rate 107

Government Debt 89

Business Costs of Terrorism 74

Extent and Effect of Taxation 66

Cellular Telephones 55

Flexibility of Wage Determination 50

Value Chain Presence 46

Cooperation in Labor-Employer Relations 42

Prevalence of Trade Barriers 39

Burden of Government Compliance 38


Mexico - Map

The United States Has the World’s LargestEconomy and Growth Has Outpaced OtherDeveloped Economies



The United States Leads All MajorEconomies in GDP Per Capita

More Diverse and Older Workers AreDriving Growth in the American Workforce

Source: U.S. Bureau of Labor Statistics

Source: Office of Advocacy, U.S. Small Business Administration

Small and Medium-Sized FirmsCreate Most New Jobs

Source: International Intellectual Property Alliance, “2004-2005 Estimated Trade

Losses Due to Copyright Piracy” (Sep. 18, 2006)

American Businesses Lose Billions of DollarsAnnually Due to Intellectual Property Violations

Source: Updated version of Figure 1 in David H. Autor, Frank Levy, and Richard J. Murnane, “The Skill Content Of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of

Economics, 118(4), November 2003. See also Frank Levy and Richard J. Murnane, “How Computerized Work and Globalization Shape Human Skill Demands,” (May 31, 2006)

Higher-Order Skills Have Grown inImportance, Driven by TechnologicalChange and Globalization

Immigrants, Women and MinoritiesHelp Drive U.S. Entrepreneurship

Source: Robert W. Fairlie, “Kauffman Index of Entrepreneurial Activity: National Report, 1996-2005” (2005)

Source: U.S. Bureau of Labor Statistics

The United States Has High Levelsof Job Churn

U.S. Multinationals Sell Three Times MoreThrough Foreign Operations Than Through Exports

Source: U.S. Bureau of Economic Analysis

U.S. consumption has drivenexport-led growth around the world

Source: Global Insight, Inc.

Energy expenditures are a growingshare of U.S. economic output

Source: International Energy Agency, Annual Energy Outlook 2006

Regional competitiveness(International Competitiveness Index: IMCO)

52.5

61.7

63.2

53.2

61.3

63.0

Asia EEC NAFTA

2004

2006

Source : IMCO, Punto de Inflexi ón: Situaci ón de la Competitividad de M éxico, (2007)

Canada’s Performance in the

Global Economy

• Canada’s economic performance has been strong over the

past decade

• Canada’s macroeconomic framework created the right

conditions for improvement in living standards and

sustained economic growth.

– Lowest debt burden among G7

– Low and stable inflation

– Declining taxes

– Among the strongest employment growth in G7

– Among the strongest real GDP growth per capita in G7

• But the rest of the world has not stood still. Canada faces

new pressures on our prosperity.

Competitiveness and

Prosperity Pressures

• Trade, Investment, and Technology flows fuel productivitygrowth. These flows face new domestic and internationalchallenges:

• Domestic

– Demographic challenges to expanding our highly skilledworkforce

– Trade and investment barriers in service industries

• International

– Competitors’ rapidly improving business climates andincreased efforts to attract FDI and innovation

– Emerging markets’ growing share of FDI and innovation

– China and India integrated into global economy and movingup global value chains

– Appreciating Canadian dollar

Source of imports

NAFTA EU ASIA Others

NAFTA 34.90% 16.67% 32.03% 16.41%

Importer EU 6.12% 61.99% 12.94% 18.95%

ASIA 10.62% 10.84% 54.93% 23.61%

Others 11.84% 37.43% 21.96% 28.77%

Source: IMF DOTS for year 2005

Regional Trade Integration

0

10

20

30

40

50

60

70

80

90

Growth in Merchandise Trade

2000-2005

%

ASIA*(excl Japan)

EU-25North

America

* Asia includes China, India, Taiwan, Hong Kong, Thailand, Singapore, South Korea, Philippines, Malaysia, Vietnam and others

Source: IMF

Exp

ort

sIm

port

s

Exp

ort

sIm

port

s

Exp

ort

sIm

port

s

60

66.0%

59.4%

49.2%

Geographical Distribution of China’s Imports*(Share of Chinese Imports Sourced from Within Geographic Area Covered by Circle)

* Merchandise Imports

Source: DFAIT calculations based on data from China Customs

14

16

18

20

22

24

26

28

30

32

90

92

94

96

98

'00

'02

'04

'05

North America’s Share of World

%

Outward FDIInward FDI

Imports

Source: UNCTAD and WTO

Exports

GDP Per Capita - Milken Institute...U.S. Competitive Advantages Global Competitiveness Report,...

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