Canada Risk Analysis Essay Example | Topics and Well Written Essays - 1250 words

Canada take chances Analysis - Essay ExampleIn the last decade party leaders have want to remedy this situation. To remain an attractive partner in multilateral economic arrangements, Canada must struggle to breathe competitive (Zimmerman, 2008).Legal environment is favorable for international companies, thus Canada is a US oriented companies with whole cultural and economic relations with the USA partners. Among the major fede treadd states, Canada is the most loosely organized. Constitutionally, the provinces have jurisdiction all over matters related to education, culture, and natural resources, and so they have a voice in foreign policies touch on these concerns. Because Canada lacks the kindred of the interstate commerce provision of the U.S. Constitution, even trade between the provinces is not entirely drop of encumbrances thus in trade matters, also, Ottawa is nearlywhat fettered in dealing with other governments. Furthermore, because Canada lacks the equivalent of the principle that treaties override other domestic legislation (embodied in the U.S. Supreme Court decision minute vs. Holland, 1920) Ottawas diplomatic authority is weak (Zimmerman, 2008).Exchange and repatriation of funds risks In Canada there is no currency restrictions dictated on the repatriation of funds. Thus, in virtually cases, the repatriation may have tax consequences. In Canada, exchange rates argon stable, so a foreign company will avoid these risks. Competitive risk assessment In Canada, the international and domestic competition is fierce. Canada has gained from the succession of tariff-cutting rounds, moreover with its fairly high tariffs has had to make large concessions in return. Furthermore it can be the subject of actions taken against it for allegedly breaking a GATT rule. GATT has no sanctions, but an injured state can impose countervailing duties in retaliation for the offense or take some other action for compensation if a specially-appointed panel rule s that a GATT provision has been violated (Zimmerman, 2008).Taxation and range taxation risks The main legal regulations for international companies are Tax rate for resident companies and tax rate on long-term capital gains. VAT rates are based on standardized procedures there is a Goods and Services sales tax (GST) which rate varies depending on the states between 6 and 14% (FITA 2008). In some cases the threat has been enough to induce the Canadian government to change its regulation. Although Canadians share the U.S. preference for the freest possible globular trading system, and indeed cooperate with the United States in GATT and elsewhere in pressing for policies favoring openness, Canadas much smaller economy is especially vulnerable to U.S. moves. Canadas trade is overwhelmingly with the United States its imports from and its exports to the United States amount to well over 70 percent of the respective totals ()FITA 2008. Market Risks (4 Ps) Canada is also the largest for eign market for U.S. trade, even though U.S. exports to Canada invoice for no more than 25 percent of total U.S. exports. In fact, the two economies are so structured that if one country tries to retaliate for a perceived trade injury to some section, another segment is likely to be harmed in return.Product - Canada is the