Canada is a ripe arena for Multinational Corporations (MNCs). The projected growth of cities in Canada is impressive. As the cities grow, the ready workforce will grow, thereby making one of the key success factors already strongly in place. As a result, many industries will benefit from being based in Canada just for the dedicated workforce alone. However, there are quite a few other reasons that Canada is ready to expand. (Walberg, 2013)
Canada has been trying since 2010 to develop a plan to entice MNCs to move headquarters to a Canadian mecca. They are interested in supporting specifically the ICT (Technologies) industry from software to digital resources. While reflecting on the growth of this industry in Korea and Finland, Canadians feel that they too could provide the opportunity for ICT industries to flourish. (Government of Canada, 2010) Therefore, an ICT industry would do well to consider Canada for its home base. However, there are a few important laws for creating a business in Canada a company must keep in mind. Any established company can work through the province where they want to locate their business. There are clear guidelines and a process in place to welcome a new established business to Canada. A new company must be created by a person who immigrates to Canada specifically as a “business immigrant”. Another option is for the company to partner with a person who is already Canadian. Then they can create the new business together, following all rules for the province.
The Green Field Index shows varying information regarding Canada. The Foreign Direct Investment Index reports a decrease across the board for all industries. Manufacturing is the primary industry at this time. Other areas are wide open for growth such as ICT and Finance. (The Conference Board of Canada, 2016) Another key point is the exports have increased substantially in the past five years. The flow of FDI is an A+ in two provinces in Canada and others report that giving specifics for data have proven to be inaccurate. Therefore, overall sentiment is that the Canadian FDI is robust and the export market is thriving. (The Conference Board of Canada, 2016) Canada currently exports crude oil, cars, gasoline, vehicle parts, and delivery trucks to the United States, China, European Countries and Mexico. Canada is the 12th largest exporting country in the world. This would be a market prepared to export a multinational company’s goods and tax laws have been put in place to assist the company’s growth.
Interestingly, their imports mirror their exports with almost an equal amount of trade coming into the country and the economy is flourishing. The industries benefit from steady work and good relationships with partnering countries occuring from both exporting and importing goods.
In summary, any multinational company will find Canada a welcoming home for their business. The opportunities to export goods globally are already in place for companies in Canada with enticing tax advantages. The workforce is growing and healthy in the major cities and growing cities of the provinces. As long as the CEO is following the province regulations for an established company immigrates to open a new business, the indicators are in place for success. Overall, Canada is on the verge of becoming and international competitor as a prodigious location for any MNC.
