Canadian Government Business Assistance

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
Name of Student:
Name of University:
Author Note:

INTERNATIONAL BUSINESS1
Table of Contents
Part A: Economic Systems..............................................................................................................2
Part B: Trade barriers and Treaties..................................................................................................3
Part C: Government Interference and Foreign Direct Investment...................................................6
Part D: Canadian Government Business Assistance.......................................................................8
Reference List................................................................................................................................10

INTERNATIONAL BUSINESS2
Part A: Economic Systems
From the Multi-Attribute Rating Technique Model, Sweden and Dubai has been selected
for expanding the set-up of e-commerce business. The growth of business in these sectors can be
presented by the market structure of these economies with respect to mixed, free or centrally
planned market economies. A centrally planned market economy acts like a command economy
where decisions are taken by a central authority like the government. An economy is known as
the free market economy when economic decisions relating to supply and demand of goods are
taken by individuals and government has little or no control over the market. Mixed economy is
the culmination of two economies, free and centrally planned where economic freedom is
allowed for several private enterprises but also has government regulations in certain areas.
Sweden has the market structure of a mixed economy where the trading system is export
oriented with effective modern distribution system and skilled labor force. The economy is
driven by the high income taxes that is financed from the entire society. Mixed economies
encourages the development of private sectors with more freedom, optimum usage of resources,
more competition, efficient production and lower income inequalities (Białowąs, 2016). Dubai is
known as a centrally-planned free market economy where trade of goods are free in certain free
trade zones and regulated by government in some sectors. Most of the regulations are free and
thus cannot be called a mixed economy. Benefits of free market economy are same as that of
mixed economy with the added advantage of free movement of goods, capital, technology,
resources, ideas and maximized profits.

INTERNATIONAL BUSINESS3
To understand the effectiveness of business expansion in Sweden and Dubai, it is
important to compare the economic state of the two countries with respect to Canada by using
the economic indicators like GDP, GNP, PPP and HDI.
Table 1: Performance of economic indicators in Canada, Dubai and Sweden
Source: (As created by author)
Figure 1 shows the economic performance of the economies can be understood from the
value of economic indicators. The value of the GDP says the value of all goods and services in
the economy within a particular period of time. The GDP vale of Sweden and Dubai have
successfully increased in the past years that has led to the advancement of business opportunities.
Sweden’s GDP is the highest among EU nations and Dubai’s GDP is the second highest in UAE
(United Arab Emirates), although both of these values are lower than Canada (Evertsson, Boye,
& Erman, 2015). GNP value is more for Sweden and Dubai with respect to Canada which shows
that value of goods produced in Canada is lesser.
PPP reflects the exchange rate of goods in two countries with respect to price level which
is more for Canada. Thus, expanding business in Sweden and Dubai will increase more sales and
profits. Human Development Index (HDI) is more for Sweden and low for Dubai in comparison
with Canada which shows that Sweden is more developed than Dubai (Khan & Zahir, 2016). The
value of economic indicators is better for Sweden which proposes that expanding e-commerce
firm in Sweden will be more profitable and performance of the firm will improve.