Tuesday March 23, 2010

Canada has increasingly become part of the global marketplace

How have changes in technology, processes, and attitudes and our relationships with other countries?

Examining major changes in the automotive industry, cellular communication, information, and banking industries

Auto Pact: to protect the automotive industry in Canada and to open up freer trade with the United States, both governments signed the Canada-United States Automotive Products Agreement in 1965

Created a relationship, secured Canadian jobs

OPEC and gasoline shortage of the 1970's diverted Canadian buyers to efficient, safer, smaller, economical foreign cars (Japanese, German, Swedish, Italian, South Korean, British) – more fuel efficient

American cars: 2.5 km/L Japanese/German cars: 15 km/L Emissions

Even with foreign (non-North American) imports, if the company that made the car was U.S owned it was protected by the Auto Pact - no duty when shipped to Canada

“Big Three” started buying foreign auto companies Ford (Jaguar/Volvo), Chrysler (Mercedes Benz),

GM (Saab/Isuzu) Consumer ended up paying more for a car

manufactured by a non-Auto Pact company - even if it were manufactured in N.A using mostly N.A components

This discrepancy challenged and ultimately killed the Auto Pact

Japan and European Union filed complains with the World Trade Organization about a 6.1% tariff to export cars to Canada.

WTO ruled in favour of EU/Japan. February 28,2002 Canada’s Department

of Finance made final regulatory changes against 1965 Auto Pact

Alexander Graham Bell (1874) – Telephone – Brantford

Began telecommunications industry Telecommunication: communication

over a distance eg. By Internet, radio, or television

Cellular telephones have given rise to new Canadian businesses, new ways to do business, and global impacts that have not yet been fully analyzed

For cell phones to work, must have: Mobile Units (cellular phones) Cellular transmission/reception site

At least one transmitter and one receiver antenna. Antenna transmits digital signal over a geographical area

Mobile telephone switching office Calls transmitted and received by receptor sites Sent to switching office where they are sent to

the number called by customer EXPENSIVE INFRASTRUCTURE!

Developing countries moving directly to wireless networks (vs landlines) Cheaper and easier

Safety issues – laws on using while driving? Etiquette? Increased use of cellular phones requires

the increased production of a mineral called columbite-tatanalite (coltran)

Demand and price has gone from $66 per kilogram in 1990 to $770 per kilogram in 2001; comes from Australia, and The Congo

Businesses use information in two different ways: as a tool to make decisions and as a product to market

Use of internet and database management

In Canada, two of the primary sources of international business information are Industry Canada’s Strategis and the web site for the Development of Foreign Affairs and International Trade (DFAIT)

Also licensed or sold as patents and copyrights, licences, consulting services, and joint ventures

patent: is a grant of property right by law to give exclusive rights to the inventor and to protect the rights of the inventor and prevent others from making, using, or selling the invention (20 year period)

copyright: is a form of legal protection provided to the authors of original works, including literary, dramatic, musical, artistic, and certain other intellectual works, such as software programs; cannot copy without rights or compensation

Licensing: means that patent or copyright owners allow others to use their idea or invention for a fee or royalty

joint venture: is an agreement between two or more companies or organizations to share assets and control of a new business for mutual gain

consulting services: provide technical consulting to assist the licensees in setting up new systems and training employees

Was a heavily regulated industry but has become less so due to recent laws that have eliminated some of these regulations and allowed foreign banks to operate in Canada (for example ING Direct)

Banks are categorized as either Schedule I (domestic banks that operate in Canada under government charter - “chartered banks” - Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Canadian Western Bank, Laurentian Bank of Canada, National Bank of Canada, Royal Bank of Canada, The Toronto-Dominion Bank)

Schedule II (international banks that operate in Canada - Bank of America, Chase Manhattan, Citibank - and accept mostly deposits)

Schedule III banks (foreign bank branches that operate either full-service branches or lending branches)

Deregulation has made doing business with foreign countries much easier; transfer of currency, payment and collection of accounts, and establishment of credit have all been streamlined