Analysis of Foreign Market for Investment: Canada's Renewable Energy

This report offers a comprehensive analysis of the Canadian market, specifically examining its attractiveness to foreign investors. The study begins with an overview of Canada's economic landscape, highlighting its welcoming business environment, educated workforce, and sound banking system. The report then delves into the factors that attract foreign investment, including Canada's abundant natural resources, political stability, and strategic relationship with the United States. Three key industries—digital media, renewable energy, and automotive—are proposed as potential investment areas. The renewable energy sector is ultimately identified as the most promising due to Canada's vast natural resources, long coastlines, and growing capacity for renewable energy generation, including hydroelectricity, wind, and solar power. The report concludes that Canada's renewable energy industry presents a significant opportunity for foreign investors, given the global shift towards sustainable energy sources and Canada's leadership in the sector.

Running head: ANALYSIS OF FOREIGN MARKET
ANALYSIS OF FOREIGN MARKET
Name of the Student
Name of the University
Author Note

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Executive Summary
This report is based on the analysis of the different industries of a specific country and the ability
of those industries to attract foreign investors. The industry that is chosen is examined with
respect to its ability to attract the most number of foreign investors and prove the investment to
be profitable.
The country chosen in this report is Canada, that is a country with an abundance of natural
resources and many industries where there is huge scope of investment and thereby generating
profits for the foreign investors.
The report is concluded with the learning that the industry that is the most attractive in case of
foreign investments is the renewable energy industry.

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Table of Contents
Introduction......................................................................................................................................3
Discussion about the market analysis of a foreign country.........................................................3
Explain the choice of the specific country...................................................................................3
Proposal of three industries related to the specific countries......................................................5
Explain the choice of the specific industry..................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

3ANALYSIS OF FOREIGN MARKET
Introduction
This report is based on the market analysis of a specific country and to examine the
potential of the country to attract foreign investors. The country chosen for this analysis is
Canada. Canada is located in the North America. This is the second-largest country in the world
with respect to the land area. Canada shares its border in the southern part with the United States.
Canada has an environment, which is quite welcoming for any type of business, and it has
awarded to be second best as a country to perform business activities (Arriaga et al. 661-670).
This country has shown huge growth in the years 2006 to 2015 and the access to its
market is also huge. The workforce in Canada is the most educated group of professionals. The
tax related to the business activities is low which facilitates any type of business in this country.
The banking system of the country is sound and safe. This proves that Canada is an ideal place
for investors to invest in their business operations and any type of industry (Behrens, Kristian
and Bougna 13-27).
Discussion about the market analysis of a foreign country
Explain the choice of the specific country
Investment decisions in foreign market need to be taken after considering many factors.
The organization needs to design a separate marketing plan for the export industry. The plan
needs to address all the issues regarding the reach to a new audience and the ways to adjust to the
cultural changes related to the foreign market. Extensive research needs to done before the
ultimate decision of investing in the market is taken. The analysis of the competition in the
market is required, so that the company can prepare itself regarding the competition they can

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face in the market. Canada has shown huge economic growth in the recent years. This growth
has provided many opportunities for foreign investors in the country (International.gc.ca).
In the last few years, the foreign investment has risen in Canada and the United States has
a significant part in these investments. The Asian investors have also increased investments in
Canada almost over 90%. China is responsible for 60% of the industrial growth of Canada. The
drop in the value of the Canadian dollar is attracting more and more foreign investors who wish
to take the cost advantage. Canada has much strength related to the competition in the market.
The main advantages of the country are the location, a diverse economy, natural resources, high
quality of education, institutional and political stability. The relationship of Canada with the
United States is one of the main factors that attract foreign investors (Borrini-Feyerabend et al.).
The country has abundant natural resources and is the largest manufacturer and exporter
of Uranium and has huge reserves. This country also proves to be the world’s highest producer
of potash. Canada holds the second position in the world in terms of the generation of
hydroelectricity and has the third position in terms of the producer of natural gas. Canada has the
position of the largest supplier of petroleum products, crude oil and natural gas. Canada also
manufactures oil sands, which amounts to1.2 million barrels of sands per day (Ellabban et al.
748-764).
The economic base of Canada is diverse. Other than petroleum and mineral resources,
there are many other industries in Canada, which include forestry, agriculture and fisheries. The
population of this country is highly educated, as there are large numbers of universities in
Canada. Canada has a reputation internationally for the credibility and integrity with the help of
qualities like diplomacy and strong leadership. Canada proves itself to have a competitive

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advantage the world with the help of prudent fiscal policies and monetary policies that are
credible. The political stability of the country is another factor that facilitates the foreign
investments (Holburn 654-665).
Proposal of three industries related to the specific countries
Canada is a country with a variety of industrial sectors, which include aerospace,
automotive, bioproducts, biopharmaceuticals, business services, chemicals and plastics, digital
media, financial services, functional foods, equipment and machinery, medical devices, mining
industries, gas and oil, renewable energy, software and wireless communications
(International.gc.ca). The three industries that are chosen to attract foreign industries are digital
media industry, renewable energy and the automotive industry.
 Canada mainly offers the strategic location to the foreign investors in the most
prominent are in the one of the largest and most profitable markets in the world
in the automotive sector. The market access and integration into the automotive
super cluster in the Great Lakes are of Canada is seamless. This sector has
employed around 117,00 employees in the year 2013. Canada is the part of the
North American fully integrated automobile market with sales of around 20
million vehicles and production of around 16 million units annually (Liu et al.
222-229).
Canada also has an advantage related to the cost of labor as compared to
the US. Canada has access to some of most important and largest markets of the
automotive sector in the world. The supply sector of the Canadian automotive
industry is also well established, as they have long relationships with many of
the car manufacturers who are the leaders in the industry (MacAvoy et al.)

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 The digital media industry is another blooming industry in the Canadian
markets. This industry is identified as the leader in the world with respect to the
development of video games, visual effects and animation. This industry
employs more than 50,000 employees and thereby generates annual revenue
amounting to 7.5 billion and this makes the country the leader in investment
destinations. The business costs offered by Canada are the lowest with respect to
the digital entertainment and development of video games (Moran). Canada
enjoys the advantage related to cost of labor required in the production of digital
products that are interactive, visual effects or animation. The best-selling console
games are designed by the Canadian studios. The gaming industry of Canada is
the most booming industry, which contributes to the GDP of the country. This
proves that foreign investment in this industry will also be successful (Arriaga et
al.).
 The industry of renewable energy in Canada offers many opportunities to
foreign investors. The industry of renewable energy in Canada is a strong market
that provides a lot of scope to the foreign investors related to the development of
technology and the supply related to energy generation, energy distribution and
the storage of energy. Around 65% of the total amount of electricity that
originates in Canada is related to renewable sources of energy. The renewable
energy accounts for a larger share of the capacity of electricity generation of
Canada. This is facilitated by the abundance of natural resources in Canada
(Behrens, Kristian and Bougna 13-27).

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The coastlines of Canada are long and the country also has a land mass
which is vast and this gives the country the best solar and wind resources
required for the generation of renewable energy. Canada has one of the biggest
regional and domestic market and is ranked 6th in the world with respect to the
consumption power of electricity (Holburn). This industry has shown huge
growth in Canada and the solar capacity in an annual basis is expected to
increase by three times within 2025. This country is the leader in the world in
performing R & D, which is collaborative in nature. This industry provides huge
opportunities to create successful partnerships between universities, industries,
government and facilities used for testing (Borrini-Feyerabend et al.).
This explanation shows that the three industries namely, automotive industry, digital
media industry and the renewable resources industry are the most promising industries in Canada
and have the potential to attract foreign investors.
Explain the choice of the specific industry
According to the study of the different industries, it can be derived that the renewable
energy industry in Canada is the most blooming industry. The abundance of the natural resources
in Canada facilitates the huge production of renewable energy in this country. Canada is
recognized as the leader in the world in the renewable energy sector. About 18.9% of the total
energy required by Canada is fulfilled by the renewable energy industry. The most abundant
source of renewable energy in Canada is the moving water, second largest source of renewable
energy is the wind and third position is held by the energy produced by biomass. The solar and
wind energy are the two sources of energy, which are the fastest growing electricity sources in
Canada (Ellabban et al. 748-764).

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Conclusion
The report can be concluded by stating that the renewable source of energy is the most
booming market in Canada that is viable for foreign investment. The reason being that the
natural resources available in Canada are abundant. The country has a huge landmass and the
geographical dimensions are diverse. The renewable resources available in the country can be
used by the foreign investors to the optimum level so that the profits can be generated.
Hydroelectricity holds the highest position as the source of renewable energy in Canada.
The next important contribution to renewable energy is done by bio-energy and wind
energy. As the non-renewable sources of energy in the world are on the verge of exhausting, the
renewable energy industry can prove to be a profitable area of investing. Moreover, with the
abundance of natural resources, Canada can prove to be a profitable market in this industry for
the foreign investors.

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References
Arriaga, Mariano, Claudio A. Cañizares, and Mehrdad Kazerani. "Renewable energy alternatives
for remote communities in Northern Ontario, Canada." IEEE Transactions on Sustainable
Energy 4.3 (2013): 661-670.
Behrens, Kristian, and Théophile Bougna. "An anatomy of the geographical concentration of
Canadian manufacturing industries." Cahier de recherche/Working paper (2013): 13-27.
Borrini-Feyerabend, Grazia, et al. Sharing power: A global guide to collaborative management
of natural resources. Routledge, 2013.
Ellabban, Omar, Haitham Abu-Rub, and Frede Blaabjerg. "Renewable energy resources: Current
status, future prospects and their enabling technology." Renewable and Sustainable Energy
Reviews 39 (2014): 748-764.
Holburn, Guy LF. "Assessing and managing regulatory risk in renewable energy: Contrasts
between Canada and the United States." Energy Policy 45 (2012): 654-665.
International.gc.ca. "Automotive - Invest In Canada." GAC. N.p., 2017. Web. 2 Nov. 2017.
Liu, Tingting, et al. "Potential and impacts of renewable energy production from agricultural
biomass in Canada." Applied Energy130 (2014): 222-229.
MacAvoy, Paul W., et al., eds. Privatization and state-owned enterprises: lessons from the
United States, Great Britain and Canada. Vol. 6. Springer Science & Business Media, 2012.
Moran, Theodore. "Foreign direct investment." The Wiley-Blackwell Encyclopedia of
Globalization (2012).

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Stokes, Leah C. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario,
Canada." Energy Policy 56 (2013): 490-500.
Warren, Fiona J., and Donald Stanley Lemmen. Canada in a changing climate: Sector
perspectives on impacts and adaptation. Natural Resources Canada, 2014.
Wüstenhagen, Rolf, and Emanuela Menichetti. "Strategic choices for renewable energy
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(2012): 1-10.