Class Notes (839,081)
Canada (511,183)
POLS 3470 (45)
Tim Mau (45)
Lecture 6

POLS 3470 - Week 6

6 Pages
66 Views

Department
Political Science
Course Code
POLS 3470
Professor
Tim Mau

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Description
Problems of Foreign Ownership October 7, 2013 Retards Canadian entrepreneurialism Reduces exporting/trading capacity Loss of head office and therefore lose some of that decision making capacity Increased outflow of capital Infringes upon Canadian political sovereignty Trading of the enemy act – president is allowed to state who companies can and cannot trade with Reduces control over the Canadian economy Limits scope of research and development activities Canada is typically criticized for its business not investing enough in r&d Companies doing the most r&d in this company are either broken up (Nortel) or losing workforce dramatically (RIM/Blackberry) Takes employment away from Canadians Forces consumers to pay higher prices for products Production and shipping could lead to a higher cost for the consumer Dependent economic satellite of the US US branch plants have been set up to exploit our natural resources for their economic benefit Benefits of Foreign Investment/Ownership Access to new technologies Making investments abroad 19% more productive than Canadian owned companies Availability of capital Get economies of scale, production and marketing Lower costs associated more broadly New management skills Just in time delivery – Japanese advancements Much needed capital Don’t have access to it here – foreign investment leads them to the next level of global competitiveness Employment opportunities Could potentially create new jobs, save current jobs Higher standard of living Business Legacy Staples economy Fish, fur, timber and wheat Continue to play a very important role, a lot of success has bee contributed to our natural resources High centralized economy Ontario produces over half of the technologically advanced exports Service sector dominates Seen the shift from manufacturing Over 80% of Canadians employed in this tertiary sector High degree of economic concentration Insurance, banking, transportation, brewing, newspaper and broadcasting industries Foreign investment still important Trading nation Still have this tradition and see that with the NFA and expansion trading with the US Pacific rim trading opportunities Fragmented industrial relations 1/3 of the Canadian labour force is unionized Chronically high unemployment Hovering just over 7% Heavy reliance on seasonal industries (fisheries, logging) Strong state State getting active and involved in terms of the economy Tariff measures, various regional economic policies adopted by government recently Assistant for auto sector Pro business and pro mercantilist state Business Associations in Canada Fragmented; small, narrowly-focused organizations Allow business to speak with a more unified voice No peak associations Two consequences Business is not accountable Fewer policy options for decision-makers – vulnerable to various trade agreements Fairly recent phenomenon – only 15 ‘nationally relevant’ organizations at confederation Toronto board of trade, Guelph chamber of commerce – same thing Rapid expansion, particularly post 1945 In terms of labour, emergence and expansion of various types of organizations that represented business and labour Some 1600 associations includ
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