Think canada 2010

Canada – Solid Reasons to Invest

1

Think Creative.Think Competitive.Think Bottom Line.Think Canada.

August-September 2010


2

Table of Content

s Page

I Excellent Economic Fundamentals 3II A Cost-Competitive Business Environment 12III A Dynamic Workforce 25IV A Solid Infrastructure 33V Easy Access to Markets 39 VI An Excellent Place to Live 44


3

I Excellent Economic Fundamentals

4

Real GDP Growth and Projections (%)

0.80.5

0.1

0.6 0.5

-0.6

3.12.9

1.81.5

1.1

1.9

2.4

-0.6-1.0

0.0

1.0

2.0

3.0

4.0

Cana

da

U.S.

U.K.

Fran

ce Italy

Ger

man

y

Japa

n

%

2010-11

2006-09

Canada has a Relatively Strong Economy Despite the Global Slowdown Consensus Economics According to Consensus Economics, Canada has been a top performer among the G7 in GDP growth over the 2006-09 period and is expected to remain so through 2010-11.

Source: Consensus Forecasts, August 2010, Consensus Economics Inc.

5

Real GDP Growth and Projections (%)

0.8 0.70.3

0.6

-0.7

0.5

-0.5

3.43.2

1.9 1.9

1.3

2.0

2.5

-1.0

0.0

1.0

2.0

3.0

4.0

Cana

da

U.S.

U.K.

Fran

ce Italy

Ger

man

y

Japa

n

%

2010-11

2006-09

Similarly, recent OECD statistics rank Canada as a top performer among G7 countries in terms of GDP growth during the 2006-09 period and the best during the 2010-11 forecast period.

Source: OECD Economic Outlook, No. 87, May 2010.

Other Forecasts also Highlight Canada’s Relatively Strong Economy OECD

6

Canada also has Superior Employment Growth…

Strong economic growth and rising demand for Canadian commodities over the last decade, combined with provincial and federal policies to improve the flexibility and adaptability to the changing workplace, have helped generate healthy gains in employment.

Employment Growth (%) 1999-2009

0.4

0.6

0.7

0.9

1.0

1.6

-0.3

-1 0 1 2

Japan

U.S.

Germany

U.K.

France

Italy

Canada

Source: U.S. Bureau of Labour Statistics, OECD Economic Outlook, No.87, May 2010

7

…a Sound Fiscal Advantage Canada has enjoyed eleven consecutive annual federal budget surpluses ending in 2007-08; it

has undertaken one of the largest stimulus packages among developed economies in the current global economic downturn.

In Budget 2010, Canada has chosen to run short deficits to stimulate its economy without putting long-term prosperity at risk and is expected to return to balanced budgets in the medium term.

Over the coming years, Canada’s net debt-to-GDP ratio will remain the lowest in the G7 by a wide margin with a return to a surplus predicted shortly following the 2014-15 fiscal year.

* Forecasts for both countriesSource Canada: The Federal Budget, Finance Canada, March 4, 2010Source United States: United States Congressional Budget Office, March 5, 2010.

Federal Government Budgetary Balance(% of GDP)

-0.4

-3.5 -3.1

-1.6-1.0

-0.5 -0.1

-10.9

-8.4

-5.5-4.6 -4.2 -4.3 -4.2

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2008

-09

2009

-10*

2010

-11*

2011

-12*

2012

-13*

2013

-14*

2014

-15*

Canada U.S.

8

Canada was the only G7 country to post a surplus in 2008. Despite being in an overall deficit position during the 2009-2011 period, Canada will be in a far better position than most G7 member countries.

Source: OECD Economic Outlook, No.87, May 2010

Total Government Budget Balance 2008-11 (% of GDP)

(National Accounts Basis)

0.1

-2.7

-4.9

0.0

-3.3

-6.5

-2.1

-3.5

-5.1

-11.0

-4.4

-7.4

-10.2

-7.7

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

Cana

da Italy

U.K.

Germ

any

Fran

ce U.S.

Japa

n

2008

2009-11

…Leading Most Other G-7 Countries

9

…a Low Inflation Rate Regime… A low inflation environment provides business certainty for investors.

Canada’s targeted inflation rate range between 1% and 3% has been extended until 2011. Over the past five years, Canada has enjoyed relatively low inflation –

averaging 1.8% compared to 2.6% for the U.S. and 1.8% for the G7.Inflation(Year-Over-Year % Change)

1.92.2

2.0 2.12.4

0.3

2.7

3.43.2

2.9

3.8

-0.3

1.8 1.9 1.9 1.9

3.0

0.3

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2004 2005 2006 2007 2008 2009

Canada U.S. G-7

Source: OECD Economic Outlook, No. 87, May 2010

10

Canada’s solid fiscal situation and low inflation has led to lower interest rates. The sharp decline in interest rates in both Canada and the U.S. in early 2009 were a

consequence of the global economic downturn. Rates in the U.S. were lowered more than in Canada because of the greater severity of the slump in the U.S. economy.

Source Canada: Government of Canada 10-Year Bond: September 10, 2010Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: September 10, 2010

Daily Yields (%)

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.8

7-May

-10

21-M

ay-10

4-Jun-1

0

18-Ju

n-10

2-Jul-1

0

16-Ju

l-10

30-Ju

l-10

13-Aug

-10

27-Aug

-10

10-Sep

-10

Long-Term Bond Yields (%)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Jan-0

5Ja

n-06

Jan-0

7Ja

n-08

Jan-0

9Ja

n-10

….Low Interest Rates

Canada

U.S.

U.S.

Canada

11

…and Great Potential for Future Economic Prosperity According the Prosperity Potential Index*, Canada ranks 1st in the G7 and 6th

among 30 developed countries in terms of the likelihood for economic prosperity in the year 2020.

Prosperity Potential Index - Ranking of Top Ten Countries

10th9th

8th7th

6th5th

4th3rd

2nd1st

Rank

* The Prosperity Potential Index measures the likelihood of economic prosperity in the year 2020 for 30 developed countries. The ranking is based on data from the OECD on areas that spark future economic development: demographics, trade, energy, technology and education. Source: Canadian Business Magazine, October 26, 2009


12

II A Cost-Competitive

Business Environment

13

Canada’s Positive Business Climate… Canada understands the importance of its business community and has created an

environment to encourage its success. Canada is the best place for doing business among the G7 over the next five years

according to the Economist Intelligence Unit and it ranked fourth overall out of 82 countries in the Economist Intelligence Unit’s global business rankings for the forecast period (2010-14), down slightly from third from the historical period (2005-2009).

The country also ranks well for its infrastructure, market opportunities, low taxes, and foreign trade and exchange controls.

Business Environment of Top Ten Countries, Rank for Forecast Period 2010-2014

10th9th

8th7th

6th5th

4th3rd

2nd1st

Rank

Source: The Economist Intelligence Unit, August 2010

14

…is a Safe Haven for Business Investment…

According to Dun & Bradstreet’s Global Risk Indicator (GRI)*, Canada is considered one of the world’s safest countries to invest, due to the relatively mild slowdown experienced as a result of the global credit crisis.

Despite being earmarked as having a deteriorating outlook, Canada ranks 1st in the G7 and 2nd among the 131 countries evaluated in the GRI study.

Highest Ranked Countries in Terms of the Global Risk Indicator*

10th9th

8th7th

6th5th

4th3rd

2nd1st

Rank

•The Global Risk Indicator (GRI) assesses economic, commercial, external and political risk to provide risk ratings for 131 countries worldwide.

•Source: Dun & Bradstreet, August 2009

15

…Involving Relatively Few Steps in Establishing a Business…

Regulations pertaining to the creation of new businesses are considerably more flexible in Canada than those in the rest of the G7.

Canada ranks first among the G7 and OECD countries for the lowest number of procedures required to establish a new business.

Number of Procedures*

1

56

89

5.7 66

0123456789

10

Canada France OECDAverage

U.S. Italy U.K. Japan Germany

Source: Doing Business in 2010 - The World Bank Group, 2009 * A "procedure" is defined as any interaction of the company founder with external parties (government agencies, lawyers, auditors, notaries, etc). Interactions between company founders or company officers and employees are not considered as separate procedures. For example, an inauguration meeting where shareholders elect the directors and secretary of the company is not considered a procedure, as there are no outside parties involved.

16

…and Relatively Less Time

Canada ranks first among the G7 for the fewest number of days required for establishing a new business.

Duration (days)

56 7

10

13 13

18

23

0

5

10

15

20

25

Canada U.S. France Italy U.K. OECDAverage

Germany Japan

Source: Doing Business in 2010- The World Bank Group, 2009

17

Canada also has Low Business Costs…

For the eighth consecutive time, KPMG’s Competitive Alternatives study finds Canada leads the G7 with the lowest business costs.

Canada is the lowest-cost G7 country in 14 of the 17 industries analyzed by KPMG’s Competitive Alternatives 2010 report: aerospace, agri-food, automotive, chemicals, electronics, medical devices, pharmaceuticals, precision manufacturing, telecommunications, back office/call centres, software design, web and multimedia, biotechnology and product testing.

Source: KPMG Competitive Alternatives 2010

Percentage Cost Advantage (Disadvantage) Relative to the United States

5.0

1.8 1.7

0.0 0.0

-2.6

-7.6

-10

-8

-6

-4

-2

0

2

4

6

Cana

da U.K.

Fran

ce Italy

U.S.

Germ

any

Japa

n

18

Source: The Federal Budget, Finance Canada, March 4, 2010 and the OECD Tax Database. * METR takes into account federal and provincial statutory corporate income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.

…and Offers an Overall Tax Advantage for Firms to Expand…

International Comparison of Statutory General Corporate Tax Rates in 2012

39.5 39.1

34.4

30.228.0 27.5

25.0

10

15

20

25

30

35

40

45

Japan U.S. France Germany U.K. Italy Canada

%

As a result of corporate income tax reductions introduced by the Government since 2006, Canada will have the lowest statutory corporate tax rate in the G7 by 2012.

Canada is on track to having the lowest overall tax rate on new business investment (marginal effective tax rate (METR*)) in the G7 in 2010.

Relative Generosity of R&D Tax Incentives*(Index: Canada = 100.0)

76.1

77.0

80.6

84.0

85.9

100.0

123.9

50 60 70 80 90 100 110 120 130

Germany

Italy

U.S.

U.K.

Japan

Canada

France

19

…with Quality R&D as its Major Benefit

Canada offers one of the most favorable tax treatments for R&D among the G7. Canada provides a system of

tax credits and accelerated tax deductions for a wide-variety of R&D expenditures.

Eligible costs include: salaries, overhead, capital equipment, and materials.

These tax-based incentives permit firms to significantly reduce R&D costs through direct investment or sub-contracting in Canada.

Source: Warda, Jacek, Rating Measuring Canada's R&D Tax Incentives: May 22, 2009Note: Relative generosity is determined by dividing the after tax cost of performing $1.00 of R&D by 1 less the corporate tax rate. Results are indexed to the relative generosity of Canada's system of tax-based support for R&D. The higher the ratio the more competitive the tax system.* Calculations based on large firms

20

Canada Offers Competitive and Affordable Business Telephone Charges…

Canada’s business telephone charges are relatively low among G7 countries.

Source: OECD Communications Outlook 2009

Annual Business* Telephone Charges(US$ PPP**, Price per line)

1243

990

896

811

723

550

495

0 200 400 600 800 1000 1200 1400

U.K.

Japan

Italy

France

Canada

U.S.

Germany

* Business (small and medium-sized enterprises) basket of telephone charges include fixed access and 84,000 calls broken down according to distance, destination (fixed, mobile and international), time of day over a one-year period. **PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

21

Canada has the lowest residential telephone charges among the G7 and OECD countries.

Annual Residential* Telephone Charges(US$ PPP)

982

910

909

742

705

579

391

0 200 400 600 800 1000 1200

Japan

Italy

France

Germany

U.K.

U.S.

Canada

…and Low Residential Telephone Charges

Source: OECD Communications Outlook 2009

* High usage basket of residential telephone charges include fixed access and 2,400 calls broken down according to distance, destination (fixed, mobile and international), time of day over a one-year period.** PPP = Purchasing Power Parity (equalization of purchasing power of different countries in their home countries for a given basket of goods)

22

Canada has Sound Financial Institutions…

With the world in the midst of the current financial crisis, investors can take comfort in the fact that Canada has the soundest banking system in the G7.

Six of the 50 safest banks are in Canada, according to a recent study: Royal Bank of Canada (10th), Toronto Dominion Bank (15th), Scotiabank (22nd), Caisse Centrale Desjardins (25th), Bank of Montreal (36th) and CIBC (37th).**

Soundness of Banks* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Canad

a

New Zea

land

Austra

lia

Leba

non

Chile

South

Africa

Panam

a

Hong K

ong

Singap

ore Malta

Rank

*Standing among 139 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2010-11** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , September 2010

23

…Easy Access to Capital… Canada was able to weather the storm as world credit markets collapsed in 2008

due to the stability of its equity markets and strength of its economic policy. In 2009, the Milken Institute ranked Canada 1st in its Capital Access Index.

*Standing among 122 countries. Milken Institute, April 2010

Capital Access Index (Maximum = 10)Top 10 Regions/Countries 2009

8.25

7.99 7.95 7.92 7.88

7.687.54 7.52 7.49 7.47

7

7.5

8

8.5

Canad

a

Hong K

ong

U.K.

Singap

ore U.S.

Switzerla

nd

Sweden

Austral

ia

Netherl

ands

Finland

24

… and Stands Among Leaders in IT Industry Competitiveness

Canada ranks second behind the U.S. among the G7 and fourth in a 66-country review of the countries best suited to provide an optimally competitive environment for information technology (IT) firms.

IT Industry Competitiveness Index* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Rank

*Standing among 66 countries. Index based on the following six categories of quantitative and qualitative indicators: overall business environment; IT infrastructure; human capital; legal environment; R&D environment; and support for IT industry development. Source: Economist Intelligence Unit, September 2009.


25

III A Dynamic Workforce

26

Canada has one of the World’s Best-Educated Workforces…

The overall skill level of Canada’s workforce ranks high among competing countries.

Canada has the second highest percentage of individuals achieving at least college or university education, among OECD member countries.

Higher Education Achievement Among All Countries

58.756.0 55.0 54.0 53.0

47.044.0 43.0 42.0 41.2 41.0 41.0 41.0 40.0 40.0 40.0

30

35

40

45

50

55

60

Singap

ore

South

Korea

Canad

aJap

an

Taiwan

New Zea

land

Irelan

d

Norway

Israe

l

Hong K

ong

Austral

ia

Belgium

France

Denmark

Sweden USA

%

Source: IMD, World Competitiveness Yearbook 2010

27

Canadian schoolchildren ranked third among the 30 OECD countries and fourth among all 57 countries surveyed in the OECD Program for International Student Assessment (PISA).

The PISA survey is conducted annually among 400,000 school pupils across 57 countries, and evaluates the capacity of 15-year old schoolchildren to understand and solve academic problems.

It also provides insights into the reading ability and mathematical knowledge of schoolchildren.

PISA Score (points) - Top 10 OECD Countries

553542

529 524 521 520 517 514 510 509496

450

500

550

600

Finland

South

Korea

Canad

a

New Zea

land

Netherl

ands

Austra

liaJa

pan

Switzerla

nd

Belgium

Irelan

d

OECD Averag

e

Source: OECD 2007

…is a World Leader in Youth Academic Performance…

28

Canada ranked 3rd in the G7 and 14th in a 110-country study measuring innovation performance in the manufacturing sector.

Canada stood in the top tier, ranking ahead of traditionally strong innovators such as Britain (15th), Israel (16th), Germany (19th), France (20th) and Australia (22nd).

…and Manufacturing Sector Innovative Performance

International Innovation Index* World Rank

38th

20th19th15th14th

9th8th

U.S. Japan Canada U.K. Germany France Italy

Inde

x

*Standing among 110 countries. Index based on government support for innovation - through tax and education policies, and the quality of infrastructure; the performance of innovative companies, measured by factors such as high-tech exports, the amount of intellectual property generated and employment growth. Source: The Innovation Imperative in Manufacturing – How the United States Can Restore its Edge, Boston Consulting Group, March 2009

29

Canada has Superior Management Training…

Canada ranks first in the G7 and third in a 139-country study of locally available management education in first-class business schools. (see chart below)

In addition, six Canadian schools of management are ranked among the top 100 in the world according to the Financial Times (UK) Global MBA rankings for 2010. University of Toronto (Rotman) 45th; University of Western Ontario (Ivey) 49th; York University in Toronto (Schulich) 54th; University of British Columbia (Sauder) 82nd ; University of Alberta 86th; and McGill University (Desautels) 95th.

*Standing among 139 countries. Index based on the quality of Management education in first-class business schools.•Source: Global Competitiveness Report, 2010-2011

Management Education* World Rank

10th9th

8th7th

6th5th

4th3rd

2nd1st

Qatar

Switzerla

nd

Canad

a

Belgium

France

Singap

ore

Sweden

Spain

Icelan

dU.K.

Rank

30

… the Highest Concentration of Entrepreneurs…

From a global standpoint, Canada has the highest concentration of entrepreneurs within its working population.

Businesses, including start-ups, develop new products and services and get them to market and conceive new types of organization and production and put them into practice.

New companies also serve to remind existing firms of the need to adapt and continue innovating.

Source: Statistics Netherlands 2008

Number of Entrepreneurs as a Percentage of the Working Population

15.9

11.5 11.2 11.1 11.110.1 9.7

8.6 8.56.9

0

5

10

15

20

Canad

a

Netherl

ands U.K.

Irelan

d

Belgium U.S.

German

y

Finland

Sweden

Denmark

31

…PC and Internet Users… Canada has a technology savvy population and workforce. It leads the G7

with respect to Internet users per capita and is second to the U.S. among the G7 in terms of personal computers per capita.

Source: IMD, World Competitiveness Yearbook 2010

Internet Users Per 1,000 Inhabitants

810 805 797

769

733

689 689

600

650

700

750

800

850

Canada

Japa

nU.S.

U.K.

German

y

France Ita

ly

Personal Computers Per 1,000 Inhabitants

899

861

811794

751

710

667

600

650

700

750

800

850

900

950

U.S.

Canad

aU.K.

German

y

France

Japa

n Italy

32

…and a Readily Available Army of Qualified Engineers… Canada ranks second in the G7 in terms of the availability of qualified

engineers in its labour market.

Source: IMD, * Rank among 58 economies considered in the World Competitiveness Yearbook 2010.

Qualified Engineers Availability Index*

7.87 7.84 7.78

7.39

6.886.78

6.62

6.0

6.5

7.0

7.5

8.0

France Canada U.S. Japan Italy U.K. Germany

Inde

x


33

IV A Solid Infrastructure

34

Canada’s Highly Globalized Infrastructure….

Due to its rapidly growing prominence as an outsourcing market of choice, Canada ranked second in the G7 and eighth among 72 countries profiled in the recent A.T. Kearney/Foreign Policy Magazine Globalization Index* which measures economic integration, personal contact, technological connectivity and political engagement.

In technological connectivity, one of the four components of the index, Canada’s ranking rose from sixth place in 1999 to second in 2006. It maintained this position in 2007.

Globalization Index Rankings, 2007*

34th

28th25th

22nd

12th8th7th

U.S. Canada U.K. Germany France Japan Italy

Inde

x

Source: A.T. Kearney/Foreign Policy Magazine, 2007 * Standing based on 12 characteristics under the headings of trade, FDI, telephone, travel, remittances & personal transfers, internet users, internet hosts, secure servers, international organizations, UN peacekeeping, treaties and government transfers.

35

Over the past decade, Canada has witnessed a substantial growth in both inward and outward FDI reflecting its strong connection to global supply chains.

Canada’s inward FDI stock reached C$549 billion in 2009, a more than 2-fold increase from C$253 billion in 1999.

As for Canada’s outbound FDI, the expansion of Canadian direct investment abroad (CDIA) has been equally spectacular, rising from C$291 billion in 1999 to C$593 billion in 2009, a more than 2-fold increase.

CDIA

FDI

….is Driven by a Dynamic Two-Way Investment Process

Source: Statistics Canada, April 14, 2010

36

The United States is Canada’s Largest Source of FDI…

In 2009, the U.S. share of foreign direct investment (FDI) in Canada stood at 52.5%, demonstrating its confidence in Canada’s business climate.


Geographic Distribution of Inward FDI Stock in Canada 2009

United Kingdom 11.6%

Netherlands 8.5%

Switzerland 3.9%

Brazil 2.7%

France 3.3%

United States 52.5%

Others 17.6%

37

From 2000-2009, EU countries increased their FDI in Canada by C$68 billion and other non-EU countries together with the US increased their investment in Canada by C$163 billion, thus demonstrating their confidence as well in Canada.


0

100

200

300

400

500

600

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08

Foreign direct investment in Canada by geographic area of origin 1990-2009

Billion$Cdn

EU

US

Others

…and Companies from Other Countries are also Increasing their Investments in Canada

38

Increasingly more investment goes toward industries such as manufacturing, mining and oil and gas extraction and toward the management of companies and enterprises. Since 1999, significant growth in terms of FDI has occurred in utilities and in mining and oil and gas extraction.

Average Annual Growth Rates of Foreign Direct Investment by Industry (%) 1999-2009*

-0.33.8

4.84.8

6.16.87.48.18.69.29.8

13.017.2

24.0

-5.6

11.7

-10 0 10 20 30

Real estate and rental and leasingAgriculture, forestry, fishing and hunting

Accomodation and food servicesInformation and communication technologies

Wholesale tradeManufacturing

Retail TradeFinance and insurance

OVERALLConstruction

Management of companies and enterprisesProfessional, scientific and technical services

Transportation and warehousingAll other industries

Mining and oil and gas extractionUtilities


Canada Welcomes Foreign Investment in Various Industries

1.119.0

2.9 1.6 2.5

10.9 0.9100.0 13.1

2.7 35.5 6.4 1.9 0.5 0.2 0.9

2009 Distribution (%)

* North American Industry Classification System (NAICS)


39

V Easy Access to Markets

40

Canada Offers Efficient Flows of Goods Across Borders…

Canada leads the G7 and ranks 8th among 125 countries in terms of the enabling trade index, which measures the effectiveness of the combined factors of market access, border administration, transport & communications infrastructure, and business environment towards the efficient flow of goods over borders and to their final destination.

Enabling Trade Index - Top 20 Countries

6.06

5.70

5.41 5.41 5.37 5.33 5.32 5.29 5.28 5.26 5.26 5.255.20 5.17 5.13 5.12

5.06 5.06 5.03 5.02

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

Inde

x

Global Enabling Trade Report 2010, World Economic Forum.

41

The North American market is serviced through a well-integrated transportation system, which is among the world’s best. Automated permit ports, transponder identification systems and joint

processing centres are being tested and deployed for easy movement of goods Bottom line – the border system is one of the world’s most efficient.

Annual Transborder CrossingsTotal Number of Trucks and Canada-U.S. Air Passengers

(Two-way movements)

0

5

10

15

20

25

1984 1988 1992 1996 2000 2004 2008*

Mill

ions

Source: Statistics Canada and Transport Canada, 2008 (* Preliminary data for 2008 air passengers)

Truck

Air

…a Streamlined Trans-Border Transportation System…

20.8 million

11.5 million

42

Mexico City

1000 km

500 km

Los Angeles

Denver

Houston

Atlanta

Seattle

Miami

New York

Boston

Philadelphia

WashingtonBaltimore

DetroitChicago Cleveland

St. LouisPittsburgh

Milwaukee

San Francisco

St. John's

CalgaryVancouver

ReginaHalifax

TorontoMontréal

WinnipegCharlottetown

Edmonton

VictoriaOttawa

Windsor

QuébecFredericton

Saskatoon

Canadian-based businesses have access to one market of 444 million consumers with a combined GDP of about US$16.7 trillion.*

Many Canadian production hubs are actually closer to U.S. markets than American production sites — of Canada’s 20 largest cities, 17 are within an hour and half drive of the U.S.

Direct air service between major cities in Canada and the U.S. has nearly doubled in the last six years.

…and Direct Access to the NAFTA Market

* Source: World Bank: World Development Indicators database, October 2009

43

Canada has Efficient Transport Linkages Tying North America with Asia

A reliable and efficient transportation system is key to effective participation in global supply chains.

In October 2006, Canada has launched the Asia-Pacific Gateway and Corridor Initiative, an unprecedented alignment of public and private sector investments to strengthen Canada’s position as a fast, efficient and secure gateway between North America and Asia.

These investments will improve the flow of people, goods and services across Canadian rail, roads, bridges and through our ports and airports.


44

VI An Excellent Place to Live

45

Canada is a Desirable Location to Live, Work, Study and Invest…

Canada ranks first in a 50-country study that measures the potential of a country as an ideal place to live, work, study and invest.

Location Desirability Index*

67.4 67.4

66.1 65.9 65.8 65.6

63.9 63.762.7

61.8

6061626364656667686970

Canad

aU.S.

Switzerla

nd U.K.

France

German

y

Austral

ia

Sweden Ita

ly

Japan

Loca

tion

Desi

rabi

lity

Scor

e

•Index ranging from 0-100 based on five components of a country’s potential for immigration and investment: (a) Willingness to live and work for a substantial period in the country; (b) Quality of life; (c) Good place to study for educational qualifications; (d) The country has businesses I’d like to invest in; (e) Equal opportunity. Source: Anholt-GfK Roper Nation Brands Index 2009 Report, October 2009

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… and has the Best Overall Quality of Life Among Countries…

Canada has the best overall quality of life among the G7.

Source: IMD, * Rank among 58 economies considered in the World Competitiveness Yearbook 2010.

Quality of Life Index*

9.15

8.78 8.77

7.94

7.37

6.946.71

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

Canada Germany France U.S. U.K. Japan Italy

Inde

x

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According to a recent annual quality-of-life ranking of 221 world cities, four Canadian cities ranked among the top 25.

Source: Mercer Human Resources Consulting: May 2010

…with Exceptional Quality of Life in Cities….

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According to a recent Eco-City* ranking of 221 world cities, four Canadian cities ranked among the top 25 with Calgary topping the list and Ottawa ranking 3rd.

Source: Mercer Human Resources Consulting: May 2010* Includes the following criteria: Water availability, water portability, waste removal, sewage, air pollution and traffic congestion.

…and Superior Eco-City* Standings

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Canada is a Leader in Human Development*…

In the latest United Nations Human Development Report, Canada ranked first among the G7 countries and fourth among 182 countries surveyed.

*Standing among 182 countries. Index based on achievements in terms of life expectancy, educational attainment, and adjusted real income.Source: United Nations Human Development Report 2009-2010, October 5, 2009

Human Development Index* World Rank

22nd21st18th

13th10th

8th4th

Canada France Japan U.S. Italy U.K. Germany

Inde

x

50

…and Ranks Among Model Nations of Peace

According to the Global Peace Index, a recently released measure by the Economist Intelligence Unit, Canada ranked second in the G7 and fourteenth among 149 countries surveyed.

*Standing among 149 countries. Index ranking countries based on peacefulness, both domestically and abroad using 23 indicators, including the number of soldiers killed overseas, the level of violent domestic crimes and relations with neighbouring countries. Source: Economist Intelligence Unit, June 2010

Global Peace Index* World Rank

85th

40th32nd31st

16th14th7th

Japan Canada Germany U.K. France Italy U.S.

Inde

x

51

Canada is also a Safe and Just Society…

Canada ranks highest among G7 leaders in terms of the safest place to live and conduct business with the most fairly administered judicial system.

Source: IMD * Confidence that person and property is protected. Rank among 58 economies considered in the 2010 World Competitiveness Yearbook. **Degree of fairness of the judicial system in Society. Rank among 58 economies considered in the 2010 World Competitiveness Yearbook.

Security* — World Rank

8.5 8.5 8.5

7.67.4

6.9

5.9

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

Inde

x

Justice** — World Rank

8.1 7.97.6 7.5 7.5

7.0

3.3

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Inde

x

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…a Land of Equal Opportunity…

Canada ranks first among the G7 in providing equal opportunities for individuals.

Source: IMD * Race, gender, family background does not pose a handicap for competitiveness. Rank among 58 economies considered in the 2010 World Competitiveness Yearbook.

Equal Opportunity* — World Rank

7.0

6.7 6.76.4 6.4

5.6

5.0

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Canada France U.S. Germany Japan U.K. Italy

Inde

x

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….and a Society Rich in Multiculturalism

Canada has one of the world’s most multilingual societies with over 200 languages identified as the mother tongue.

While there has been a decline in the proportion of the Canadian population whose mother tongue is one of the two official languages, there has been an overall increase in the proportion of the population whose mother tongue is neither English or French from 18.0% in 2001 to 20.1% in 2006.

Source: Statistics Canada, 2001 and 2006 Census * based on mother tongue. ** includes Cantonese and Mandarin

Top Ten Spoken Languages in Canada* (% of Population)

0.7

0.9

0.9

1.2

1.2

1.5

1.53.3

22.1

57.8

0.8

0.7

0.7

0.9

1.0

1.5

1.72.9

22.9

59.1

0

10

20

30

40

50

60

%

2006 Census 2001 Census

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Canada – Solid Reasons to InvestCanada’s economic fundamentals and relative cost advantages provide a first-rate business environment. Canada offers:

Excellent Economic Fundamentals Low inflation and low interest rates Strongest economy in the G-7

A Cost-Competitive Business Environment Ease in establishing a new business Competitive tax system

(particularly for R&D) Strong technological environment

A Dynamic Workforce One of the world’s best-educated

workforces Technology savvy workers

Think Creative. Think Competitive. Think Bottom Line.Think Canada.

A Solid Infrastructure Highly globalized infrastructure and

technological connectivity Rapidly expanding foreign direct investment

linkages

Easy Access to Markets Geography and NAFTA provide easy access

to the world’s most prosperous market Highly efficient transportation linkages with

Asia

An Excellent Place to Live Superb overall quality of life A society rich in multiculturalism

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Invest in Canada Through Canadian diplomatic missions around the world, and with direct

access to investment contacts at national, provincial and municipal levels within Canada, the Invest in Canada Bureau of the Department of Foreign Affairs and International Trade Canada is well positioned to assist in attracting and expanding your investment. We invite you to explore all that Canada has to offer.

Please contact your local Canadian Embassy, High Commission or Consulate, or write to us at:

Foreign Affairs and International Trade CanadaInvest in Canada Bureau, 111 Sussex Drive, 3rd FloorOttawa, Ontario, Canada K1A 1J1E-mail: [email protected]

www.investincanada.gc.ca

Think Canada! is prepared by Arif Mahmud, Invest in Canada Bureau.

Think canada 2010

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