Think Canada May - June 2010 Edition

download Think Canada May - June 2010 Edition

of 55

Transcript of Think Canada May - June 2010 Edition

  • 8/14/2019 Think Canada May - June 2010 Edition

    1/55

    Canada Solid Reasons to Invest

    1

    Think Creative.Think Competitive.

    Think Bottom Line.

    ThinkCanada.May-June 2010

  • 8/14/2019 Think Canada May - June 2010 Edition

    2/55

    Canada Solid Reasons to Invest

    2

    Table ofContents Page

    I Excellent Economic Fundamentals 3

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

  • 8/14/2019 Think Canada May - June 2010 Edition

    3/55

    Canada Solid Reasons to Invest

    3

    I Excellent EconomicFundamentals

  • 8/14/2019 Think Canada May - June 2010 Edition

    4/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    5/55

    5

    Real GDP Growth and Projections (%)

    0.8 0.7

    0.30.6

    -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

    Can

    ad

    a

    U.S.

    U.K.

    Fran

    ce

    Italy

    Germ

    any

    Jap

    an

    %

    2010-11

    2006-09

    Similarly, recent OECD statistics rank Canada as a top performer among G7countries in terms of GDP growth during the 2006-09 period and the bestduring the 2010-11 forecast period.

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

    Other Forecasts also Highlight Canadas

    Relatively Strong EconomyOECD

  • 8/14/2019 Think Canada May - June 2010 Edition

    6/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    7/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    8/55

    8

    Canada was the only G7 country to post a surplus in 2008. Despite being inan overall deficit position during the 2009-2011 period, Canada will be in afar 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

    daIta

    lyU

    .K.

    Germ

    any

    Fran

    ceU

    .S.

    Jap

    an

    2008

    2009-11

    Leading Most Other G-7 Countries

  • 8/14/2019 Think Canada May - June 2010 Edition

    9/55

    9

    a Low Inflation Rate Regime

    A low inflation environment provides business certainty for investors. Canadastargeted 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

  • 8/14/2019 Think Canada May - June 2010 Edition

    10/55

    10

    Canadas 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 aconsequence of the global economic downturn. Rates in the U.S. were lowered morethan in Canada because of the greater severity of the slump in the U.S. economy.

    Source Canada: Government of Canada 10-Year Bond: June 18, 2010

    Source U.S.: U.S. Treasury, Constant Maturity 10-Year Bond: June 18, 2010

    Daily Yields (%)

    3.0

    3.2

    3.4

    3.6

    3.8

    4.0

    12-Feb-1

    0

    26-Feb-1

    0

    12-Mar-

    10

    26-Mar-

    10

    9-Apr-

    10

    23-Apr-1

    0

    7-May

    -10

    21-May

    -10

    4-Jun

    -10

    18-Jun-1

    0

    Long-Term Bond Yields (%)

    1.5

    2.02.5

    3.0

    3.5

    4.04.5

    5.0

    5.5

    Jan-0

    5

    Jan-0

    6

    Jan-07

    Jan-0

    8

    Jan-0

    9

    Jan-1

    0

    .Low Interest Rates

    Canada

    U.S.

    U.S.

    Canada

  • 8/14/2019 Think Canada May - June 2010 Edition

    11/55

    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 theyear 2020.

    Prosperity Potential Index - Ranking of Top TenCountries

    10th

    9th

    8th

    7th

    6th

    5th4th

    3rd

    2nd

    1st

    Swed

    en

    Norw

    ay

    Finlan

    d

    Icelan

    d

    Switz

    erlan

    d

    Cana

    da

    Denm

    ark

    Luxemb

    ourg

    New

    Zeala

    nd

    Nethe

    rlands

    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

  • 8/14/2019 Think Canada May - June 2010 Edition

    12/55

    Canada Solid Reasons to Invest

    12

    II A Cost-CompetitiveBusiness Environment

  • 8/14/2019 Think Canada May - June 2010 Edition

    13/55

    13

    Canadas Positive Business Climate

    Canada understands the importance of its business community and has created anenvironment to encourage its success.

    Canada is the best place for doing business among the G7 over the next five yearsaccording to the Economist Intelligence Unit and it ranked fifth overall out of 82countries in the Economist Intelligence Units global business rankings for theforecast 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

    10th

    9th

    8th

    7th

    6th

    5th

    4th

    3rd

    2nd

    1st

    Sing

    apore

    S

    witze

    rland

    Finlan

    d

    H

    ong

    Kong

    Cana

    da

    Denm

    ark

    Austr

    alia

    New

    Zeala

    nd

    Swed

    en

    Nethe

    rland

    s

    Rank

    Source: The Economist Intelligence Unit, June 2010

  • 8/14/2019 Think Canada May - June 2010 Edition

    14/55

    14

    is a Safe Haven for Business Investment

    According to Dun & Bradstreets Global Risk Indicator (GRI)*, Canada is consideredone of the worlds safest countries to invest, due to the relatively mild slowdownexperienced as a result of the global credit crisis.

    Despite being earmarked as having a deteriorating outlook, Canada ranks 1st in theG7 and 2nd among the 131 countries evaluated in the GRI study.

    Highest Ranked Countries in Terms of the Global RiskIndicator*

    10th

    9th

    8th

    7th

    6th

    5th

    4th3rd

    2nd

    1st

    Austr

    alia

    Cana

    da

    Norw

    ay

    Switz

    erlan

    d

    Austria

    Finla

    nd

    Fran

    ce

    Germ

    any

    Luxe

    mbou

    rg

    Netherlan

    ds

    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

  • 8/14/2019 Think Canada May - June 2010 Edition

    15/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    16/55

    16

    and Relatively Less Time

    Canada ranks first among the G7 for the fewest number of days required forestablishing 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

  • 8/14/2019 Think Canada May - June 2010 Edition

    17/55

    17

    Canada also has Low Business Costs

    For the eighth consecutive time, KPMGs Competitive Alternatives study finds Canadaleads the G7 with the lowest business costs.

    Canada is the lowest-cost G7 country in 14 of the 17 industries analyzed by KPMGsCompetitive 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

    Can

    ada

    U.K.

    Fran

    ceIta

    lyU

    .S.

    German

    y

    Japa

    n

  • 8/14/2019 Think Canada May - June 2010 Edition

    18/55

    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 taxsystem and other taxes paid by corporations, including provincial capital taxes and retail sales taxes on business inputs.

    and Offers an Overall Tax Advantage forFirms to Expand

    International Comparison of Statutory General Corporate TaxRates in 2012

    39.5 39.1

    34.4

    30.2

    28.0 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 since2006, 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.

  • 8/14/2019 Think Canada May - June 2010 Edition

    19/55

    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 mostfavorable tax treatments for R&Damong the G7.

    Canada provides a system of

    tax credits and accelerated taxdeductions for a wide-varietyof R&D expenditures.

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

    These tax-based incentives permitfirms to significantly reduce R&Dcosts through direct investment orsub-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

  • 8/14/2019 Think Canada May - June 2010 Edition

    20/55

    20

    Canada Offers Competitive and Affordable

    Business Telephone Charges Canadas 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)

  • 8/14/2019 Think Canada May - June 2010 Edition

    21/55

    21

    Canada has the lowest residential telephone charges among the G7 andOECD 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)

  • 8/14/2019 Think Canada May - June 2010 Edition

    22/55

    22

    Canada has Sound Financial Institutions

    With the world in the midst of the current financial crisis, investors can take comfortin 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 ofCanada (10th), Toronto Dominion Bank (14th), Scotiabank (22nd), Caisse Centrale

    Desjardins (26

    th

    ), Bank of Montreal (31

    st

    ) and CIBC (37

    th

    ).**

    Soundness of Banks* World Rank

    10th

    9th

    8th

    7th

    6th

    5th

    4th

    3rd

    2nd

    1st

    Canada

    New

    Zeala

    nd

    Australia Ch

    ile

    Hong

    Kong

    South

    Africa

    Namibia

    Singapore

    Panama

    Brazil

    Rank

    *Standing among 133 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, 2009-2010

    ** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine , October 2009

  • 8/14/2019 Think Canada May - June 2010 Edition

    23/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    24/55

    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 forinformation technology (IT) firms.

    IT Industry Competitiveness Index* World Rank

    10th

    9th

    8th

    7th

    6th

    5th

    4th3rd

    2nd

    1st

    U.S.

    Finlan

    d

    Swed

    en

    Cana

    da

    Nethe

    rland

    sU.K.

    Austr

    alia

    Denm

    ark

    Singa

    pore

    Norw

    ay

    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.

  • 8/14/2019 Think Canada May - June 2010 Edition

    25/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    26/55

    26

    Canada has one of the Worlds Best-

    Educated Workforces The overall skill level of Canadas workforce ranks high among competing

    countries.

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

    Higher Education Achievement Among All Countries

    58.7

    56.055.0

    54.053.0

    47.0

    44.043.0

    42.0 41.2 41.0 41.0 41.040.0 40.0 40.0

    30

    35

    40

    45

    50

    55

    60

    Singapore

    South

    Korea

    Canada

    Japan

    Taiwa

    n

    New

    Zeala

    nd

    Irelan

    d

    Norway

    Israel

    Hong

    Kong

    Australia

    Belgiu

    mFra

    nce

    Denm

    ark

    Sweden

    USA

    %

    Source: IMD, World Competitiveness Yearbook 2010

  • 8/14/2019 Think Canada May - June 2010 Edition

    27/55

    27

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

    The PISA survey is conducted annually among 400,000 school pupils across 57countries, 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

    529524 521 520 517 514 510 509

    496

    450

    500

    550

    600

    Finlan

    d

    South

    Korea

    Canada

    New

    Zeala

    nd

    Nethe

    rlands

    Australia

    Japan

    Switz

    erland

    Belgi

    umIrelan

    d

    OEC

    D Averag

    e

    Source: OECD 2007

    is a World Leader in Youth Academic

    Performance

  • 8/14/2019 Think Canada May - June 2010 Edition

    28/55

    28

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

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

    and Manufacturing Sector InnovativePerformance

    International Innovation Index* World Rank

    38th

    20th19th15th

    14th

    9th8th

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

    Index

    *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

  • 8/14/2019 Think Canada May - June 2010 Edition

    29/55

    29

    Canada has Superior Management Training

    Canada ranks first in the G7 and second in a 133-country study of locally availablemanagement education in first-class business schools. (see chart below)

    In addition, five Canadian schools of management are ranked among the top 100 inthe world according to the Financial Times (UK) Global MBA rankings for 2009.University of Toronto (Rotman) 47th; University of Western Ontario (Ivey) 47th; York

    University in Toronto (Schulich) 49th; University of British Columbia (Sauder) 71st ;and University of Alberta 77th.

    *Standing among 133 countries. Index based on the quality of Management education in first-class business schools.Source: Global Competitiveness Report, 2009-2010

    Management Education* World Rank

    10th

    9th

    8th

    7th

    6th

    5th

    4th

    3rd

    2nd

    1st

    Switz

    erland

    Canada

    France

    U.S.

    Singapore

    Spain

    Belgi

    umQa

    tar

    Denm

    ark

    Icelan

    d

    Rank

  • 8/14/2019 Think Canada May - June 2010 Edition

    30/55

    30

    the Highest Concentration ofEntrepreneurs

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

    Businesses, including start-ups, develop new products and services and get them tomarket and conceive new types of organization and production and put them intopractice.

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

    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 8.5

    6.9

    0

    5

    10

    15

    20

    Canada

    Nethe

    rlands

    U.K.

    Irelan

    d

    Belgi

    um U.S.

    Germany

    Finlan

    d

    Sweden

    Denm

    ark

  • 8/14/2019 Think Canada May - June 2010 Edition

    31/55

    31

    PC and Internet Users

    Canada has a technology savvy population and workforce. It leads the G7with respect to Internet users per capita and is second to the U.S. among theG7 in terms of personal computers per capita.

    Source: IMD, World Competitiveness Yearbook 2010

    Internet UsersPer 1,000 Inhabitants

    810 805797

    769

    733

    689 689

    600

    650

    700

    750

    800

    850

    Canada

    Japan

    U.S.

    U.K.

    Germany

    France

    Italy

    Personal ComputersPer 1,000 Inhabitants

    899

    861

    811794

    751

    710

    667

    600650

    700

    750

    800

    850

    900

    950

    U.S.

    Canada U.

    K.

    Germany

    FranceJapan

    Italy

  • 8/14/2019 Think Canada May - June 2010 Edition

    32/55

    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 7.847.78

    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

    Index

  • 8/14/2019 Think Canada May - June 2010 Edition

    33/55

    Canada Solid Reasons to Invest

    33

    IV A SolidInfrastructure

  • 8/14/2019 Think Canada May - June 2010 Edition

    34/55

    34

    Canadas Highly Globalized Infrastructure.

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

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

    in 2007.

    Globalization Index Rankings, 2007*

    34th

    28th25th

    22nd

    12th

    8th7th

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

    Index

    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.

  • 8/14/2019 Think Canada May - June 2010 Edition

    35/55

    35

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

    Canadas inward FDI stock reached C$549 billion in 2009, a more than 2-fold increase fromC$253 billion in 1999.

    As for Canadas 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, amore than 2-fold increase.

    Canada's Inward and Outward FDI Stock ($Billion)

    200

    300

    400

    500

    600

    700

    1999

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009

    CDIA

    FDI

    .is Driven by a Dynamic Two-Way

    Investment Process

    Source: Statistics Canada, April 14, 2010

  • 8/14/2019 Think Canada May - June 2010 Edition

    36/55

    36

    The United States is

    Canadas 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 Canadas business climate.

    Source: Statistics Canada, April 14, 2010

    Geographic Distribution of Inward FDI Stock in Canada

    2009United Kingdom 11.6%

    Netherlands 8.5%

    Switzerland 3.9%

    Brazil 2.7%

    France 3.3%

    United States 52.5%

    Others 17.6%

  • 8/14/2019 Think Canada May - June 2010 Edition

    37/55

    37

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

    Source: Statistics Canada, April 23, 2010

    0

    100

    200

    300

    400

    500

    600

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

    Foreign direct investment in Canadaby geographic area of origin 1990-2009

    Billion$Cdn

    EU

    US

    Others

    and Companies from Other Countries are

    also Increasing their Investments in Canada

  • 8/14/2019 Think Canada May - June 2010 Edition

    38/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    39/55

    Canada Solid Reasons to Invest

    39

    V Easy Accessto Markets

    C d Off Effi i t Fl f G d

  • 8/14/2019 Think Canada May - June 2010 Edition

    40/55

    40

    Canada Offers Efficient Flows of GoodsAcross Borders

    Canada leads the G7 and ranks 6th among 121 countries in terms of the enablingtrade index, which measures the effectiveness of the combined factors of marketaccess, border administration, transport & communications infrastructure, andbusiness environment towards the efficient flow of goods over borders and to theirfinal destination.

    Enabling Trade Index

    5.97

    5.57

    5.44 5.44 5.445.35 5.33 5.33

    5.29 5.27 5.27 5.24

    5.125.07

    5.02

    4.8

    5.0

    5.2

    5.4

    5.6

    5.8

    6.0

    Singapore

    Hong

    Kong

    Switz

    erland

    Denm

    ark

    Sweden

    Canada

    Norway

    Finlan

    d

    Austria

    Nethe

    rlands

    New

    Zeala

    nd

    Germany

    Luxemb

    ourg

    Australia

    U.S

    Index

    Global Enabling Trade Report 2009, World Economic Forum.

    S li d T B d

  • 8/14/2019 Think Canada May - June 2010 Edition

    41/55

    41

    The North American market is serviced through a well-integrated transportationsystem, which is among the worlds best.

    Automated permit ports, transponder identification systems and joint processingcentres are being tested and deployed for easy movement of goods

    Bottom line the border system is one of the worlds 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*

    Millions

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

    Truck

    Air

    a Streamlined Trans-BorderTransportation System

    20.8 million

    11.5 million

  • 8/14/2019 Think Canada May - June 2010 Edition

    42/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    43/55

    43

    Canada has Efficient Transport Linkages

    Tying North America with Asia

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

    In October 2006, Canada has launched the Asia-Pacific Gateway and CorridorInitiative, an unprecedented alignment of public and private sectorinvestments to strengthen Canadas 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.

  • 8/14/2019 Think Canada May - June 2010 Edition

    44/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    45/55

    45

    Canada is a Desirable Location to Live,

    Work, Study and Invest Canada ranks first in a 60-country study that measures the potential of a country as

    an ideal place to live, work, study and invest.

    Location Desirability Index*

    62.3

    61.1 61.1 61.0 60.7 60.5

    59.659.0

    57.757.1

    55

    56

    57

    58

    59

    60

    61

    62

    63

    64

    65

    Canada U.K. U.S.

    Switz

    erland

    Germany

    France

    Australia Sw

    eden Italy Japan

    LocationDesirabilityScor

    Index ranging from 0-100 based on five components of a countrys 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 Id like to invest in; (e) Equal opportunity.

    Source: Red Hot Locations, London U.K. 2009

    O Q f

  • 8/14/2019 Think Canada May - June 2010 Edition

    46/55

    46

    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

    6.06.5

    7.0

    7.5

    8.0

    8.5

    9.0

    9.5

    10.0

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

    Index

    i h E i l Q li f Lif i

  • 8/14/2019 Think Canada May - June 2010 Edition

    47/55

    47

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

    Source: Mercer Human Resources Consulting: May 2010

    Overall Quality of Life Ranking (Top 25 Cities)

    (Index: New York City = 100.0 )

    108.6

    108.0

    107.9

    107.4

    107.4

    107.2

    107.0

    107.0

    106.5

    106.3

    106.2

    105.9

    105.7

    105.5

    105.4

    105.3

    105.0

    104.8

    104.6

    104.5

    104.2

    104.2

    104.1

    103.9

    103.9

    98

    102

    106

    110

    Vienn

    aZu

    rich

    Gene

    va

    Vancou

    ver

    Auckl

    and

    Dsse

    ldorf

    Frankfurt

    Munic

    hBe

    rn

    Sydn

    ey

    Cope

    nhag

    en

    Wellin

    gton

    Amste

    rdam

    Ottaw

    a

    Brusse

    ls

    Toron

    toBe

    rlin

    Melbo

    urne

    Luxemb

    ourg

    Stockh

    olm Perth

    Montr

    eal

    Hamb

    urg

    Nurem

    berg

    Oslo

    with Exceptional Quality of Life in

    Cities.

  • 8/14/2019 Think Canada May - June 2010 Edition

    48/55

    48

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

    Source: Mercer Human Resources Consulting: May 2010

    * Includes the following criteria: Water availability, water portability, waste removal, sewage, air pollution and traffic

    congestion.

    Eco-City* Ranking (Top 25 Cities)(Index: New York City = 100.0 )

    145.7

    145.1

    139.9

    139.9

    138.9

    137.8

    137.5

    137.4

    135.6

    135.6

    135.6

    135.3

    133.6

    133.6

    133.6

    133.6

    133.6

    133.6

    133.5

    133.5

    133.3

    132.4

    131.6

    131.6

    131.5

    110

    115

    120

    125

    130

    135

    140

    145

    150

    Calga

    ry

    Honolulu

    Ottaw

    a

    Helsin

    ki

    Wellin

    gton

    Minneapolis

    Adelaide

    Copenhagen

    Kobe

    ,Japan Os

    lo

    Stockh

    olmPerth

    Montreal

    Vancouver

    Nurem

    berg

    Auckland

    Bern

    Pittsb

    urghZu

    rich

    Aberd

    een,

    UK

    Canberra

    Singapore

    Brisbane

    Washing

    tonDC

    Melbo

    urne

    and Superior Eco-City* Standings

  • 8/14/2019 Think Canada May - June 2010 Edition

    49/55

    d R k A M d l N ti f

  • 8/14/2019 Think Canada May - June 2010 Edition

    50/55

    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 fourteenthamong 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

    16th14th

    7th

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

    Index

  • 8/14/2019 Think Canada May - June 2010 Edition

    51/55

    51

    Canada is also a Safe and Just Society

    Canada ranks highest among G7 leaders in terms of the safest place to live andconduct 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

    7.6

    7.4

    6.9

    5.9

    5.0

    5.5

    6.0

    6.5

    7.0

    7.5

    8.0

    8.5

    9.0

    Cana

    da

    Germ

    any

    Japa

    nFra

    nce

    U.S.

    U.K. Ita

    ly

    Index

    Justice** World Rank

    8.17.9

    7.67.5 7.5

    7.0

    3.3

    2.0

    3.0

    4.0

    5.0

    6.0

    7.0

    8.0

    9.0

    Canada

    Germany

    Japan

    France

    U.K.

    U.S. Ita

    ly

    Index

  • 8/14/2019 Think Canada May - June 2010 Edition

    52/55

    52

    a Land of Equal Opportunity

    Canada ranks first among the G7 in providing equal opportunities forindividuals.

    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 6.7

    6.4 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

    Index

  • 8/14/2019 Think Canada May - June 2010 Edition

    53/55

  • 8/14/2019 Think Canada May - June 2010 Edition

    54/55

    54

    Canada Solid Reasons to InvestCanadas economic fundamentals and relative cost advantages provide a first-ratebusiness environment. Canada offers:

    Excellent Economic Fundamentals

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

    A Cost-Competitive BusinessEnvironment

    Ease in establishing a new business

    Competitive tax system

    (particularly for R&D) Strong technological environment

    A Dynamic Workforce

    The worlds best-educated workforce

    Technology savvy workers

    Think Creative. Think Competitive. Think Bottom Line.

    ThinkCanada.

    A Solid Infrastructure

    Highly globalized infrastructure andtechnological connectivity

    Rapidly expanding foreign direct investmentlinkages

    Easy Access to Markets

    Geography and NAFTA provide easy access tothe worlds most prosperous market

    Highly efficient transportation linkages withAsia

    An Excellent Place to Live

    Superb overall quality of life

    A society rich in multiculturalism

  • 8/14/2019 Think Canada May - June 2010 Edition

    55/55

    55

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

    access to investment contacts at national, provincial and municipal levelswithin Canada, the Invest in Canada Bureau of the Department of ForeignAffairs and International Trade Canada is well positioned to assist inattracting 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.