1. Canada’s economy is stable and predictable. According to the International Monetary Fund 2011 report, the Canadian economy is fiscally strong due to its low net debt-to-GDP ratio.
2. Canada is the leader in low corporate tax rates among the G-7 nations. As per the OECD report of 2011, Canada is favorable for investment in terms of corporate tax rates. Such low tax rates increases the returns of firms operating in the country.
3. Canada is further characterized by the soundest banking system. According to World Economic Forum 2011, Canada’s economy is characterized by the best banking systems that support investment.
4. Canada’s economy is technology intensive. According to a study by Forbes Magazine, in October 2011, Canadian economy offers the best environment for investment, which is characterized by improved infrastructure and excellent talent.
Q2.
According to the minister, key investments should focus on drivers of economic growth and job creation, which include education, innovation, training, and skills.
Q3.
Canada provides a successful formula for foreign investors. The formula entails the provision of stable economic and fiscal environment that supports innovation. The economy's technology-intensive nature, sound and stable financial sector, and strong public finances make it stable and predictable. Investors will use the past and current trends to predict the profitability of their investments. Further, its advanced infrastructure facilities, world-class talent, cost- competitive nature, and innovation efforts make it a hub for innovation and profitability. Such facilities support the growth of investments. The nation considers innovation as the basis for high returns as its stable and predictable environment enhances the sustainability of the benefits of innovation in the long term. It believes that such provisions make its economy the best destination for new international investors.
Q4.
Canada’s economy is characterized by a sound and stable financial sector. The nation’s economic strength is attributed to the sophisticated as well as stable banking and financial systems. In a recent study by the World Economic Forum carried out in 2011, Canada's banking system was the best in the world for the fourth time consecutively. This ranking is supported by other international financial analysts such as the Moody’s Analytics that ranks Canada’s banking system the leading in the world in terms of its strength. In the current era, Europe's debt crisis raises global concerns regarding the financial stability of most nations. However, Canada's banks have laid a strategic policy that keeps them open for business through the provision of credit to their members. Therefore, such a characteristic makes Canada an ideal place for foreign investment.
Q5.
Canada’s chemicals and plastics industry is among the best performing industries in the nation. The industry is characterized by excellent petrochemical facilities, favorable corporate tax rates, R"D incentives, competitively priced feedstock, readily available skilled labor, and consumer markets. Such features make the industry among the potential investment destination for foreign investors. For instance, substantial natural gas reserves offer cheap feedstock and enhance low-cost production of various chemicals such as ethylene and its components. Further, the country's abundant natural resources alongside accessibility to affordable electricity, the chemicals, and plastics industry offers foreign investors access to crucial and reliable factors of production. Moreover, its highly skilled personnel and technician makes it easy for establishment and running of new firms in the industry. The country's skilled labor is globally recognized for offering high-quality services, especially regarding the manufacturing of plastics. As such, Canada's chemicals and plastics industry provide endless opportunities to foreign investors for exploitation.
