Business Model Evolution and Sustainability

This assignment consists of various academic articles and reports related to international business, corporate social responsibility, sustainability, entrepreneurship, and business models. The papers explore concepts such as developing a unified framework for the business model, reclaiming qualitative methods in international business research, co-evolution of MNEs and institutional environment, market-oriented sustainability, and multiple embeddedness. Additionally, there are articles discussing stakeholder theory and social capital, business cases for sustainability, critical success factors of business process management, contextualizing entrepreneurship, and the business model. Finally, there are online reports discussing current and emerging issues in government debt downgrade and making sense of provincial debt downgrades.

Issues in Global Business
And Strategic Concepts
1

Table of Contents
Executive Summary ...............................................................................................................................3
Introduction ......................................................................................................................................4
Globalized Economy..........................................................................................................................5
Political economy ..............................................................................................................................7
Culture...............................................................................................................................................7
Improving fiscal sustainability............................................................................................................8
Foreign Direct Investments ...............................................................................................................8
Key Emerging Issues...........................................................................................................................8
CONCLUSION.......................................................................................................................................14
REFERENCES.........................................................................................................................................15
2

Executive Summary
This report is to analyse the Canada’s recent developments and how it contributes to the
global economy. In this report we are going to evaluate the Canada’s economy. In analysing
the different aspects we shall evaluate different factors which are responsible to develop the
economy. In this report we shall analyse the different aspects like political environment,
global impact on the environment, international trade, regional economic integration,
economic development, ethics, and the foreign direct investment in the country.
In the report we shall evaluate some critical points that the government in the Canada should
priorities in making future budgets for the country. In the second aspect of the report we shall
after evaluating the current position of the Canada’s economy we shall recommendation some
of the critical aspects of the priorities of the companies that should be importantly evaluated
by the government to overcome the current economic position of the country.
3

Introduction
Canada is a country in the northern America, having its board with United States is the
world’s largest board. Canada is also known for being the world’s second largest total land
area of the country. Also Canada is the fourth largest country by land area. The country is
encased by world’s largest coastline (Vosko & Clement, 2014). For continues nine year the
united nations has found Canada to be the world’s top three places to live in, and still it
continuous to be at top five countries.
Canada is the world’s seventh largest economy. It is the member of the Organisation for
Economic Co-operation and Development (OECD) and the Group of Eight (G8). Canada is
amongst the top ten trade nations which are so globalised (Vosko & Clement, 2014). The
North America Free Trade (NAFT) between United States and Canada is an important source
of Canada’s developing economy. Canada’s largest trade partners are United States and the
Europe. Canada helps to simplify the business rules and their policies for making
development plans. They are helping to improve the value chains by the way of effective
planning in production, delivering and uses. They are working on the capacity of government
by helping the men and women business skills.
4

Globalized Economy
Now a day the economy is growing as a reason the countries are opting for globalisation so
that they can earn more, profits, foreign currencies and develop themselves. The word
globalisation is the process interchanging with the world there products, ideas and the culture
so that they can develop and increase their economical position. The countries like Canada
are some of the developed economics that has developed themselves with the help of the
globalisation. Canada has its official trading partners as the big giants like United States and
Europe (Southcott, 2015).
Canada’s major sales to United States are through North American Free Trade agreement
which links the US with the economies of Canada and Mexico. The NAFTA was signed by
the President Bill Clinton in 1993. It also sales its product to Europe through the
Comprehensive Economic and Trade Agreement (CETA). The economics of the country is
working very smoothly.
In the recent presidential debate in the United States Trump (the representative of Republican
National Convention) has said that the NAFTA is the worst deal ever signed anywhere. As
Mr. Trump has been elected as the president of United States it is defiantly going to effect the
NAFT agreement between Mexico, Canada and United States. But the Canadian Prime
Minister Justin Trudeau has said that he shall renegotiate the NAFT agreement with the
president of United States (Southcott, 2015).
When it comes to Europe, Canada has negotiated on the CETA agreement in 2014 so as to
free the trade policies to freely trade between Europe and Canada. Canada needs to improve
its relationship with the other countries to have free global economical curtailments to
increase the GDP of the country.
Goverment is negotiating with the international agreements and territories also taking
direct role with the union. Terrotories are working with the closely with their business
communities to complete effective marketing and develop trade assistance. Bilateral and
multilateral agreements with the governments to enlarge the internati9onal organisation all
over the world (Cantwell, Dunning and Lundan, 2010).
From last many years GDP grew year by year and in the year 2012 the level of the
output and employment exceeded high by 3.4% and 2.3%. The employment performance of
5

younger and worker differ form every year. Youth aged 15-24 their employment rate of 14.8
was he highest in 21 months, while those aged above 25 at 5.8%. Growth in economy by
investment in infrastructure and spending on machine and equipment. By spending on
research and development it declines by over 25% during the period of recession. Industries
increasingly focuses on the production in mining and oil and provides growth in the GDP. By
changing the production level in industry it contributes to movements in growth. Housing
starts fairly to average the growth and unit per year (Casadesus-Masanell and Ricart, 2010).
As the country is the once of the largest global economies the Canadian Dollar has gain
strength as compared to the developing economy. The country is amongst the list of exporters
who export energy. As Canada has the world’s largest coastlines it has large deposits of
natural gas and oil (Sands, 2010). Canada has around 13% share in the total world’s oil
reserve. Canada has vast natural resources of which is exported by the country to earn money.
The country has the world’s second largest land area which leads the country to more and
more resources which is again an important advantage for the more land means more natural
resources.
In international market there are various international strength that gives the
devlopment in trade and investment linkages. There are so many bilateral relationship with
the world and making successful arrangements by the transaction of goods and services.
Canada exports equal to one quarter of GDP and supplies of more than 50% of our imports to
successfully trade with US. By their connections with the investment of a country diversifed
in many fields. A successful agreement would enhance the relations and free trade with the
other countries. Bringing the international capacity of all governments to make efforts to
transact between them (Crittenden and et. al., 2011). They support a strong commitment with
the world trade organisation by making the agreements.
Canada and Asia growing their connection to build a healthy relation. Theyexpand
their coonection by flowing and inflowing the the trade and investment through infrastructure
and networks with the capacity to move goods and money. They has enormous capacity to to
enhance their economic level and purchasing power in the international market.
In the year 2008 as the entire world faced a period of recession, Canada’s economy also faced
a decline in the conformity with the action. The economy of the declined the year 2008,
6

which lead to unemployment in various countries in Canada the unemployment rate reached
to 8.6% (Pettigrew, 2003).
Political economy
The Canada’s political environment is a parliamentary system of economy. The present prime
minister if Canada is Justin Trudeau. The resent political environment is under the fear of the
recent appointment of the United States president Trump. The entire world economy is under
a process of changeover, as we know that United States is the most powerful economy of the
world any change in the economy of United States leads to a great impact on the world
economy (Kolk and Van Tulder, 2010). The two nations have initiated varied efforts to
eliminate trade barriers existing between the trade activities. This is one of the significant
developments as it shall also enhance the regulatory framework. The statement of Mr. Trump
on the NAFT agreement that as per him it is worst agreement ever has made Canadian people
worry. If there will be any change in the NAFT agreement it will be leading to the decline in
the economy of Canada (Martin, 2012). Understand the functions of the political system. It
examies the constitutional and cultural development within the economy and understand the
functioning system. By analysing the nature of productivity and interact with the social
relationship in the economy. Canadian political Economist was Harold Innis analyse the
product and nature of Canadian State that gives communication between government and its
system. Canadian state focuses on market, resource planning and growing relaince on the
trade (Doz, 2011). They focuses on the national, international and all levels which can affect
the production and distribution of wealth of the economy.
Culture
Canada has the vast economy and the vest resources in the world. The country is influenced
by the cultural growth of the United States and Africa. Canada has a well enhanced middle
level sector. But the cultural views like television, magazines, ratios it shows an clear
visualisation of the United States which is again an evidence that they are influenced United
States to a greater extent (Economy, 2014). It dominates the national production and diverse a
cultural mix in the region by stabilizing in ehtical planning. The effect of concentration of the
population, employment and production power develops the rivarly and disparities in quality
of life. There are many events promoting by the government and it consider to promote the
traditions. Culture has adopted many policy of the Canadian government by promoting
various ethinicities and nationalities.
7

Improving fiscal sustainability
Government is elemenating its budget deificit by FY 2015-16 through declinig the
expenditure and development includes in its 2013. They introduce a two year departmental
budget freeze and announcing the reformed employee compensation announced in budget
2014. By sustained surpluses federal debt would continue declining steadily and reaching the
targets of 25% of GDP by 2021. Machinary and equipment continue to maintain the trade
deficit by consuming the goods and product (Meyer, Mudambi and Narula, 2011).
Foreign Direct Investments
As the manger investors in the Canadian economy is by the United States and the Europe is
the second largest investors in the economy of the country (The Economist, 2015). The
country is largely inviting the foreign direct investment by other countries as there was a
considerable decline of around 16% in 2015 as compared to the 2014 this would result in
decline in the economy of Canada as compared to that of the last year (The Economist, 2015).
Canada is in the world’s top ten economies that have the most foreign receipts from other
countries as the Canada is give the world an attractive business platform at rank 14th of the
189 countries. In this respect the relation shared with EU holds significant importance for the
nation. It is interesting to note that EU occupies a central position in majority of the issues
which are relevant to Canada, in the global context. One prominent development which has
been witnessed is in respect to formulation of Comprehensive Economic and Trade
Agreement (CETA). However, this development has been subjected to backdrop of political
uncertainty as well as the confirmation of BREXT. However, in the event this relationship is
implemented successfully, it has the potential to become the third pillar of the global
businesses being undertaken by Canada (Birkinshaw, Brannen and Tung, 2011). It can be
characterized as one of the new generations agreement, which shall cater to the specific
issues concerning both provincial and territorial jurisdictions.
Key Emerging Issues
The changing gloabla scenarios and market conditions shall have a significant impact
on the manner economy of the country is functioning. The government of the countries is
likely to have much difficulty by the appointment of the Mr. Trump as the president of the
countries. However, the country is required to effectively overcome these challenges and
emerge with a stable economy. One of the major issues, which can be considered as holding
8

utmost concern is that of the exchange rate of Candaian Dollar. It is important to note that
one of the crucial places in an economy is occupied by the currency exchange rate. This in
turn effects the inflation rate and the capacity to fight competition in the most effective
manner. In futherance to rejuvinating growth of the nation, less reliance shall be placed on
monetary policies and more effective fiscal policies shall be developed (Onetti and et. al.,
2012).
Canada trade with the rest of the world decreasing these days by way of sale or
purchase. It reduces the trust of the consumer on spending on trade with their industry and
real estate. There is the weakest recovery in investment by the business by lower sharing
expenditures. Canada's under performance and lack of skill in labour and productivity
decreases the economic growth. Declining in manufacturing output and employment of
Canada since many years. Economy deterioration in national trade performance and lossess
the resources of a country (Al-Debei and Avison, 2010). Canada is being unable to build
companies globally by finance and natural resources. Companies have less innovative in
technologies and it becomes decrease in profits.
The government should also focus on the issues of Provincial debts. One of the
challenges faced by the Canadian government is the rise in the provincial debts during the
last decade. The country is continuously under the presser to clear the debt (Making sense of
provincial debt downgrade, 2015). Every countries government require monies for investing
in the public welfare purposes. The invested monies are earned by the countries government
by levying taxes on the common public, industries, and other associates who earn profits out
of the countries resources. The countries need to apply these monies in the development
purposes. As per the below fig we can analysis that the debt has shown a considerable
declining after having a rise in the 1990s, but after the recession it is continuously increasing
at a constant rate and has shown sharp rise in the inflation rate too. But still the government
of the country has got control over the debt as the debt is to GDP ratio is under the level of
control. The newly appointed government of the country is of the view to continuo with the
deficit as the country has enough debt to GDP ratio to satisfy the deficit. The counties
provisional debts is continuously rising as the result it is for the first time that the federal debt
is been suppressed by the provincial debts (Canada's economy, 2011). The figure given below
shows the above explanation in a graphical presentation. In oder to eliminate this situation,
the government of Canada shall be required to undertake the tough decision of raising the
9

prices and/or reducing the spendings. These tough decisions shall enable the economy to deal
with the mounting debts and rising borrowing cost.
Inequality in the distribution of income: There is an inequality in the distribution of income
amongst the public in common. The country is continuously facing a problem of that the
richer is becoming richer and the poor people is not reaching at the level of such richer
population. The newly elected government has promised the common public at the time of
the elections that they would after getting elected would charge the tax rate at the rate of 33%
(current 29%) on and above the slab rate of $200000. The government has taken steps after
they have been elected to reduce this huge difference between the incomes of the common
public. This represents that for the first time ever in the history of the Canada such higher rate
of tax is to be charged. It is a measure concern of the government of the Canada is that if the
rate is increased to that extent then it would lead to an increase in the people who will start in
the conduct of tax evasion (Current and Emerging Issues, 2017). From all of the above steps
taken by the government there would be significant change in the distribution of the income,
and the number of people above the income slab rate would increase (Canada's economy,
2011). The above explanation can be detailed studied by the above graph
10

Canada need that oil prices to be rebound: the country has shown a decline in the price of oil
in the 2014. In that year the oil price showed a steep fall that has result in the decline of
around 30% of the investment in the energy providing company, due to which there was a
decline in the economy of the Canada. The oil prices in the country need to be increased as a
result the companies would earn more to give a rise in the economy. To rebound the economy
the country need to reach new market of the globe and enhance the demand of the oil which
would give rise to the price and the economy of the country. Looking to the 2016 market it
was expected that the price of the oil would increase as the supply of the commodity is
decreased and the demand of the oil constant (Russo and Perrini, 2010). The companies
providing the oil have to rebound the price of the oil. However it would take some time to
bring rise in the price of the oil, in the coming years it is expected that the price of the oil
shall remain at the lower end of the price range. At this level it is expected that there will be a
considerable decrease in the investment of the energy providing companies. The oil market is
to show a slow growth rate in the next year (Canada's economy, 2011). The country is
expected to have a slower GDP rate in the coming future. The following graph provides the
study of the price trends of the oil in the previous years.
The economy of the Canada has also shown a clear response on the NAFT agreement that is
expected to be withdrawn by the new United States President Donald Trump. There are
various other critical points in which the countries government is likely to invest in the
11

priorities like the country needs a bounce in the export as is the requirement in the economy,
the decline in the returns in the American tourists back to Canada, there is a considerable
decline in the resources of labour in the oil and gas industries. There are some other factors to
be looked into like the country has seen a sharp increase in the investment in the residential
houses in the economy (Canada's economy, 2011).
It can be inferred from this situation that the government of the nation shall undertake
decisions which may be tough in nature, but shall make a positive impact on the economy. In
pursuance to the same there are various measures which can be undertaken by the
government of the nation. The trend to export raw materials shall be replaced by exporting
components with value addition. In addition, investment of time and money shall be
promoted in research and development, as it may not be possible to be a competent
manufacurer because of high cost (Schaltegger, Lüdeke-Freund and Hansen, 2012). This shall
immediately boost up the economy.
All Canadian provides health care plans to the government for their member and
employees of the company. Canada focuses on the long-term survival of their industry to
make better their public system. A slowdown the economy of Canada would affect the
revenue and its major exports . The compared GDP in earlier years it reflect the lacking
power of the economy. Major declining in the price of oil creates a negative impact on the
revenues of the country. Cut in the key interest rate makes to depreciate the canadian dollar in
US. Canada includes the natural resources which creates the economy power of a country.
The financial function of banks is targeting economy and affect the exchange rate.
The territorial government health care spending the more than the economy to take
care home care. The regulations and policies made by the authority to make laws with the
responsbility in relation to education. Canada has no sentencing commission to provide the
analysis and research in this area. Human rights legislation making the rights to protect the
human but it is not absolute here (Short and et. al.,, 2010). Government can defend any
infringment of right by giving justifiaction in the court. There are many challanges faced by
the judges to make the balance between rights and interest in the society. Shifting in labour
cost gives deterioration of Canada's competitive position. Government has decline its multi
factor productivity level over last years. The shortcoming in the innovation and technology
gives the unclear view to the economy leaders. Canada planning to enlarge their labour,
capital and development growth to make successful their economic condition.
12

Canada need to grow their performance which would increase the level of living and
wealth of the economy. Countries negotiated its free trade agreement with the many country
and enlarge the scope of transaction in goods and services. Canada should make resources
available in manufacturing and research and development to increase the international
market. Economic focuses on the growth of their export and make more chaper their services.
They should enhance the productivity and determine productivity growth. Canada plans to
provide better productivity and maximises the profit of the industries. Country are combining
to facilitate the trade to exports and imports with the nation country. By increasing the natural
resources to maintain the position in the international market (Trkman, 2010). They
contributes with the government nations to develop the country and increase the standard
globally. Effective use of the technologies and higher prices to maintain the sustainability.
Companies are increasingly play an important role in the companies to focusing their
expansion activities. Country can use effectively their resources for the economic growth and
increases the core competitiveness.
NAFTA was good for the Canada economy and creates an advantage in their working
and increases its economic power. Because of the immigration policy of Canada employment
and labour reaches to the high record. Immigrant employment in manufacturing down by
8.2% and it came on top in 2008 by 11.7%. Canada emphasis on the skilled and well
educated people who comes for employment. To promote the immigration by discovering the
Canada's economy and identify the challanges of an economy. Economic issues to analyse
the sustainability form both micro and macro perspectives. Company has various drivers to
grow the arrangements to make decisions about their investment in the country (Welter,
2011). Company exceed its contribution by his revenue to grow the sustain this growth going
forward. Company develops the market and exposes the markets in increased developments.
By information technologies and deveopment a company may achieve the levels of the
financial system. To evaluate the debt to assess the risk for helathy labour market and low
interest rates are expected to support the ability of debt. Good machinery improves the
manufacturing conditions and supports the exports. High oil prices gives the strength power
to the economy of a country. They could explore their profit by making agreements with the
committees. The government continue to work with the european union countires and
develop strategies with trade relations. Comprehensive trade and relations with the countries
to make their plans effective (Zott Amit and Massa, 2011). They are making policies to
enlarge the flow of people, service and goods. They enhance the exporters to provide the
13

documentation and increases the cross border stratagies. They develop the inspection
programms for goods and services to the countries.
CONCLUSION
From the above evaluation of Canada’s economy we have observed that there is
greater role of Canada in the global economy. We have analysed different aspects and
evaluate different factors which are responsible to develop the economy. In this report we
have analysed different aspects of Canadian economy like political environment, global
impact on the environment and the foreign direct investment in the country. By analysing the
programs and services they increase the productivity of their industry. Canada supports the
investment climate to working with the national and local government. It improves the
financing and marketing between the nation to maken effective trade with the territories . We
have also analysed different critical points that has to be analysed by the government before
preparing the future budget. The Canadian economy is the one of the largest economy of the
world.
14

REFERENCES
Books and Journals
"Canada's economy", 2011, Organisation for Economic Cooperation and Development. The
OECD Observer no. 284. pp. 43.
"The new rustbelt; Canada's economy", 2015, The Economist, vol. 416, no. 8953, pp. 30
Economy (Canada, USA) 2014, 3rd edn, Oxford University Press.
Martin, P. 2012, "US elections and the Canadian economy: Is a republican in the White
House really what's best for Canada's economy?", International Journal. Vol. 67 (3).
pp. 785-795.
Pettigrew, P. 2003, "NAFTA: Canada's path to continuing economic success", Canadian
Speeches. vol. 17 (1), pp. 32.
Sands, G. 2010, "Prosperity and the New Economy in Canada's major city
regions", GeoJournal. Vol. 75(6). pp. 539-552.
Southcott, C. 2015, Northern Communities Working Together: The Social Economy of
Canada's North, University of Toronto Press.
Vosko, L. F. & Clement, W. 2014; 2003;, Changing Canada: Political Economy as
Transformation, McGill-Queen's University Press.
Al-Debei, M.M. and Avison, D., 2010. Developing a unified framework of the business
model concept. European Journal of Information Systems. 19(3), pp.359-376.
Birkinshaw, J., Brannen, M.Y. and Tung, R.L., 2011. From a distance and generalizable to up
close and grounded: Reclaiming a place for qualitative methods in international
business research. Journal of International Business Studies. 42(5), pp.573-581.
Cantwell, J., Dunning, J.H. and Lundan, S.M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4), pp.567-
586.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2), pp.195-215.
Crittenden, V.L., and et. al., 2011. Market-oriented sustainability: a conceptual framework
and propositions. Journal of the Academy of Marketing Science. 39(1), pp.71-85.
Doz, Y., 2011. Qualitative research for international business. Journal of International
Business Studies. 42(5), pp.582-590.
Kolk, A. and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development. International business review. 19(2), pp.119-125.
Meyer, K.E., Mudambi, R. and Narula, R., 2011. Multinational enterprises and local contexts:
The opportunities and challenges of multiple embeddedness. Journal of Management
Studies. 48(2), pp.235-252.
15

Onetti, A., and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance. 16(3),
pp.337-368.
Russo, A. and Perrini, F., 2010. Investigating stakeholder theory and social capital: CSR in
large firms and SMEs. Journal of Business ethics. 91(2), pp.207-221.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International
Journal of Innovation and Sustainable Development. 6(2), pp.95-119.
Short, J.C. and et. al.,, 2010. The concept of “opportunity” in entrepreneurship research: Past
accomplishments and future challenges. Journal of Management. 36(1), pp.40-65.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2), pp.125-134.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways
forward. Entrepreneurship Theory and Practice. 35(1), pp.165-184.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4), pp.1019-1042.
Online
Current and Emerging Issues, 2017. [Online]. Available through:
<http://www.lop.parl.gc.ca/content/lop/researchpublications/cei-15-e.htm>. [Accessed on 13th
February 2017].
Making sense of provincial debt downgrade, 2015. [Online]. Available through:
<http://www.macleans.ca/economy/economicanalysis/making-sense-of-provincial-debt-
downgrades/>. [Accesed on 13th Febaury 2017].
16