Posts Tagged ‘Canadian Economy’
Wednesday, January 4th, 2012
Because so much (about 30 percent) of the respending effect of the multiplier is drained off by imports when Canadian authorities inject additional demand into the economy, the multiplier effect is quite small. As a result,policies intended to stimulate the Canadian economy have less impact on output and employment in Canada than Canadian authorities would like.
In summary, the heavy exposure of the Canadian economic policy-makers. In particular, the importance of exports and of foreign capital inflows places significant limitations on Canadians authorities in deciding monetary and fiscal policies, forcing them to consider not only domestic Canadian problems, but also international factors, when formulating policies.
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Tags: Canadian Authorities, Canadian Economic Policy, Canadian Economy, Canadians, Capital Inflows, Dental Clinic, Economic Policy Makers, Employment In Canada, Fiscal Policies, International Factors, Mazda, Multiplier Effect, Puerto Morelos
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Sunday, September 12th, 2010
Industries that are oligopolistic in nature are a very important part of the Canadian economy, accounting by some estimates for as much as half the economy’s output. Oligopoly is particularly common in the manufacturing sector of the economy. An indication of its importance can be obtained by listing some of the industries that can be classed oligopolistic: steel, automobile manufacturing, heavy machinery, farm implements, pulp and paper, tobacco, beer, liquor, soft drinks, electrical apparatus, aircraft, transportation equipment, explosives and ammunition, sugar, petroleum refining, cement, meat packing and soap. As these examples show, a substantial proportion of the goods produced and consumed in the Canadian economy comes from oligopolistic industries.
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Tuesday, August 24th, 2010
While government enterprises play a smaller role in the manufacturing sector, they include some well-known names, such as De Havilland Aircraft and Canadair at the federal level, and some provincial governments have acted as partners in manufacturing firms in attempts to stimulate growth and employment in some regions. Finally, in 1981, the Post Office was converted from a government department into a Crown Corporation, in the hope that its new form would reduce the political element that had been strong when it was a government department and would allow it to concentrate on improving efficiency and employee relations, so as to become more competitive with other carriers and more financially self-sufficient.
To summarize, government enterprises are “big business” in Canada, many of them being household names and major forces in the economy. The objectives of these enterprises are not only profits – some of them, such as Canadian National Railways and the Canadian Broadcasting Corporation, are intended to provide particular services throughout the country whether to do so is profitable or not, or to aid in the development of particular industries, products or regions. The matter of government enterprises has always been a controversial one, with their critics arguing that such operations tend to be very inefficient because of political interference and the absence of the profit motive, and their supporters arguing that they are an essential component of the Canadian economy, performing functions that private enterprise would not or could not. Notwithstanding this debate over the value of government enterprises, the fact is that they comprise a large part of the Canadian economy, one which has been planned to grow even further, with PetroCan to become a major force in the Canadian energy field.
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Friday, August 20th, 2010
- The corporation, the typical form taken by larger businesses, has the advantages of being able to raise larger amounts of capital due to the limited liability of its shareholders, and of lower tax rates on income above a certain level. Disadvantages include the initial costs of incorporation and a greater degree of government regulation, especially with respect to public corporations.
- Small business is an important and dynamic sector of the Canadian economy, consisting of many hundreds of thousands of firms and employing up to 40 percent of the nation’s labor force.
- Major problems faced by small business include lack of management expertise, financing problems, government regulations and paperwork, difficulties attracting and retaining skilled employees, and coping with inflation.
- A wide variety of government programs exists to assist small business in areas such as financing, management counseling, marketing, personnel recruitment, and research and development.
- The Canadian Federation of Independent Business is an organization of over 55,000 small businesses which acts as the small business lobby with government, promoting free competitive enterprise.
- Big business is another major component of the Canadian economy, accounting for as much as half the economy’s output, according to some measures. While these large corporations are important to the Canadian economy, the domination of some industries by a few very large corporations raises questions as to whatever such corporate concentration is in the public interest.
- A different form of business concentration is the “conglomerate,” in which companies in a variety of industries are controlled by a central management group, through holding companies.
- Control of the modern large corporation is not usually in the hands of the shareholders as a group; rather, it tends to rest with top management and/or the Board of Directors, neither of which are usually major shareholders.
- A significant number of Canada’s large corporations are government owned, particularly in the areas of electrical utilities, transportation and communications, and energy and resources.
Discussion Questions:
- Do you believe that small business will become more or less important in the Canadian economy in the future? Why?
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Tags: Business Concentration, Business Lobby, Business Organization, Canadian Economy, Canadian Federation Of Independent Business, Central Management, Competitive Enterprise, Corporate Concentration, Dynamic Sector, Federation Of Independent Business, Government Programs, Government Regulation, Government Regulations, Initial Costs, Large Corporations, Major Component, Management Expertise, Personnel Recruitment, Public Corporations, Skilled Employees
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Sunday, July 11th, 2010
This idea is reinforced further by the fact that many directors serve on the boards of several companies, in what are called “interlocking directorships,” which tends to magnify their influence further. About one-quarter of Canadian corporate directors have significant “interlocking” connections, many of which are effected through Canada’s large and powerful chartered banks, as senior personnel from large corporations often serve on the boards of the banks and vice versa. There are different views concerning the significance of this so-called corporate business elite, with some observers feeling reassured by the stability and judgment that it provides, others seeing in it something threatening and sinister, and still others doubting whether its significance with respect to the actual operational decisions of Canada’s major corporations is as great as is often supposed.
Regardless of which of these views is the more accurate, it can be said in conclusion that large corporations play a very important role in the Canadian economy, even greater relatively to the size of the economy than in the USA, and that in these large corporations, control is often separated from ownership. Widespread small shareholders are not in a position to exercise active control. As a result, control tends to shift, depending on the circumstances, to the top management of the corporation or to the groups of influential members of the Board of Directors. Generally, neither top managers nor directors are major shareholders in their corporation; their claim to control over the corporation is based on their expertise rather than on ownership.
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