Practice essay question:
After reading the article below, please answer the following questions using the cases and theories we
have discussed in the course.
1. Please describe the Stern Model.
2. Please use the Stern Model to describe how positive or negative you think Canada’s business
prospects are today.
3. Does your opinion match that reported by businesses in the article below? What are the
similarities and differences?
Business optimism at 2-year high
Posted: Apr 9, 2012 12:33 PM ET
The Bank of Canada's quarterly survey of senior managers at 100 major firms found that 58 per
cent expect sales growth in the coming year, while only 23 per cent expected slower sales. (Mark
Business leaders are shaking off their winter pessimism and are expecting broadly higher sales in
the year ahead, according to a new Bank of Canada survey.
The central bank's quarterly survey of senior managers at 100 major firms found that 58 per cent
expect sales growth in the coming year, while only 23 per cent expected slower sales.
The difference — plus 35 — represents a two-year high in the measure of business confidence
and represents a dramatic turnaround from the slightly negative reading just three months earlier.
"With modestly improved expectations for near-term U.S. economic growth and fewer concerns
about the global economic and financial situation, some of the dampening effects on sales
expectations have subsided," the Bank of Canada said in its spring survey.
"More firms report that recent indicators