Political Scenario of Canada and its Impact on Business

This report delves into the political scenario of Canada, evaluating its impact on business operations and foreign direct investment (FDI). It highlights Canada's political stability, while also acknowledging challenges related to immigration policies and the strict business laws that govern the country. The report examines Canada's trade relations, particularly its export-oriented economy, and how this might affect new companies looking to enter the market. Furthermore, it analyzes the level of FDI in Canada, comparing it to other countries and suggesting implications for foreign businesses. The report uses data and resources from the Department of Foreign Affairs and Trade and Tradingeconomics.com to provide a comprehensive overview of the political and economic climate, offering valuable insights for businesses considering expansion into Canada.

Running head: POLITICAL SCENARIO OF CANADA
Political Scenario of Canada
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POLITICAL SCENARIO OF CANADA
Political scenario and condition of a country plays a crucial role in defining the risk a
company might face while expanding their business in that country. The political scenario of
the country is defined by analyzing its political stability, international relations, immigrant
policy, its openness to FDI and others. Any problem in these factors proves to be difficult for
the company while planning to penetrate in that region. Canada is well-developed country in
relation to its industries, education, employment and others (Canada country brief, 2017).
However, it is necessary that the country has a good international and political condition in
order to allow huge company intervention. Politically Canada is a stable economy, however it
has strict laws for immigration in the country and immigrants find it difficult to find
employment in Canada. However, it has the largest trade relation with other countries by
exporting most of its good. It is an export oriented economy with very less import
requirement. This makes it difficult for a new company to enter as most of the companies
already operates within the Canadian economy. FDI is Canada is quiet less at 223 CAD
Million compared to other countries as it stands in the 13th rank in FDI. This shows that the
county is not much open to foreign companies to start their operation in Canada. Canada also
has a very tight business laws that the company needs to abide by while operating in that
country. This too makes it difficult for the company to extend its operations in Canada
(Tradingeconomics, 2017).

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POLITICAL SCENARIO OF CANADA
References
Canada country brief. (2017). Department of Foreign Affairs and Trade. Retrieved 1 October
2017, from http://dfat.gov.au/geo/canada/Pages/canada-country-brief.aspx
Tradingeconomics.com. (2017). Canada Foreign Direct Investment | 1981-2017 | Data |
Chart | Calendar. Retrieved 1 October 2017, from
https://tradingeconomics.com/canada/foreign-direct-investment