A positive market-based economy aspect is that it forces people to think about what other people want. Smith saw that this was a good part about the invisible hand mechanism. He identified two ways to obtain the help and cooperation of other people. First is to appeal to the benevolence and goodwill of others. And the second way is to appeal instead to other people’s self-interest.
A quote about the ‘invisible hand’:
"Every individual necessarily labors to render the annual revenue of the society as great as he can. He generally indeed neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good."
E2. A full description of the export activities of the business and a straightforward classification of the stage of international trade
Gemos Flower BV is a medium-sized company that specializes in exporting flowers to wholesalers all over the world. There is only one establishment all over the world, which is Honselersdijk in the Netherlands. They cooperate with the Flower Auction Holland, one of the major flower auctions in Holland. Gemos was established in 1984 by Gerrit Voogd, who still owns the business. In the beginning the business only exports to England and Germany. But now, 20 years later, we export our products to different countries all over the world.
Export countries of Gemos Flower BV
Within Europe:
- England
- Germany
- France
- Sweden
- Poland
- Portugal
Outside Europe:
Because of their team, Flower Auction Holland and the major Flower auctions in the Netherlands, Gemos can offer a wide assortment of products. “We can meet the special demands of customers, because we are a medium-sized company and we can direct our buying policy towards the individual customer.” Gemos experienced team of dividers and packers makes sure that the flowers, that the customer ordered, gets the best attention during internal handling and packed suitable for the way of transport.
The quality control is important to every business. Gemos Flower has a triple quality control. In the mornings, the purchasers inspect the flowers in the cold store. Because the products have to meet their customers wishes. The dividers check the flowers when it’s brought in from the auction and flowers that don’t meet their demands will be sent back. The last quality control is done by the packers. The packers have to check the flowers again, one by one.
Gemos consider that airfreight is one of their specialties. There are no other businesses that ‘nail’ the boxes. By ‘nailing’, the loading factor is optimized and the risks of damaged flowers are decreased. To get the right temperature, during the transport, the flowers are cooled by a couple of ice bags. It’s also possible to protect the flowers from extreme cold or heat during transport, by adding specialized packing materials. They deliver the products by airplane and a truck.
Gemos exports the following flowers:
↑ Orchids ↑ ↑ Dahlia ↑ ↑ Dendramthema ↑ Freesia ↑
↑ Sunflower ↑ ↑ Iris ↑ ↑ Lily ↑ ↑ Lysianthus ↑
↑ Rivalry ↑ ↑ Rose ↑ ↑ Solidago ↑ ↑ Tulip ↑
About the export strategy of Gemos Flowers BV
During the establishment, the trade outside Holland was financial more attractive than in the Netherlands itself. Gemos doesn’t have an active acquisition policy because mostly they get approached by the new customers. And Gemos will judge whether the new customers falls under their policy or not. It is important to discuss about the delivery time, price and the quality of the country/customer.
Advantages of exporting to a foreign country:
- International contacts
- Bigger sales area
Disadvantages of exporting to a foreign country:
- Insecure about the payments of the importer
- The risks when the products are delayed during transport
The way how you export is different for every destination. Products, which are delivered within Europe, will be transported by a van and the flowers will be transported on water. Flowers that will be sent outside Europe will be packed during transport. Sometimes people ask themselves why foreign countries actually import flowers in the Netherlands, why can’t they cultivate their own flowers. This is because the Dutch market offers a wide assortment and uniformity of the flowers. That’s why it is for the foreign people interesting to import the flowers from Holland.
A short export strategy of Gemos:
- A new customer get judged at the credit worthy
- There will be looked if the present customers don’t have any trouble with the new customer
- The new customer must fall under our working-method
- And different delivery times should be discussed
When a business is taking part in the international trade, then there are several classifications involved. In this case Gemos BV takes part of an active trading. They create sales without making significant changes in the products and the overall operations.
← The business “Gemos BV” takes place in the south/west of the Netherlands
E3. A simple analysis of whether this country is actively involved in trading based on the trading activities, barriers to trade used by the country and trading agreements described
Canada
Canada is situated in the north of America and it’s divided in 10 provinces, and Ottawa is the capital city of Canada. The name Canada is derived from the Indian name ‘kanata’, which means “village” or “settlement”. The population in July 2006 est. is around 33,098,932 people. Most of the people are English, French and Scottish and the main language is English and French. Economically and technologically the country has developed together with the United States. Canadians use dollars as a currency. 1 dollar is about 72 eurocents (Dec 2005).
About three quart of the population is working in the service sector. The agricultural sector is very developed. Canada is one of the largest selling agricultural products in the world. The main products are cereals, fruits and vegetables, sugar beet and tobacco. The industrial sector is not that famous. Toronto is a world trade and business centre. The tourism is increasing; most of the international visitors are coming from the United States.
The education and health sectors are two of Canada’s largest, but both are under the purview of the government. The health care industry has been growing really fast and is the third largest in Canada. But because of this fast growth, it causes some problems for the government. They have to find money to fund it. Canada has an important high tech industry and also an entertainment industry creating content both for local and international consumption.
Income
The incomes of the Canadian families haven’t been improved since the 1990s, but now the economy has been growing. In 2000 the median income of 8,371,020 families was $55,016 and $54,560 in 1990. While the incomes have increased, the distribution hasn’t been equal. Families with an high income received 45.2% of the total market income and families with an low income received 3.8% to 3.1% in the period of 1989 to 1998.
The census data also shares one line with an improved economic condition. The proportion between the total income of families and the government transfer payments declined from 6, 4% to 5, 6% (from 1990 till 2000).
Canadians divided the families into 10 groups, based on their income levels. Each group represents 10% of the total number of families; this is called ‘deciles’. It describes the differences between families with a high, low and middle of income distribution. In 2000 the highest deciles of a family income was above the $ 117,849. The lowest deciles income was lower then $ 18,991. For the whole table of the 10 income deciles, you can find it in the enclosure on page …
Statistics Canada collected statistics for the population ’15 years of age and over’, reporting the incomes in 1995. Income sources included: wages and salaries, farm and non-farm self-employment, government transfer payments, investment income, retirement pensions and other money incomes. In the enclosure you’ll find a chart about the relationship of the income sources (on page ….)
The economic trade of Canada (import & export)
The balance of trade is a statement of a country that trade in goods (merchandise) and services. Trade covers products as manufactured goods, raw materials and agricultural goods. The balance of trade is the difference between the value of the goods and services that the country exports and imports. The balance is positive when the exports exceed their imports. This shows us whether a country is doing well or not. A positive or negative balance may change in the relative cost of domestic products compared with international prices.
Although our country has always been a trading people, the Canadians are expanding their networks abroad more than ever before. The liberalization of trade, through the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA), has reduced the costs that are related to the international trade. Thanks to the fast diffusion of information and communication technologies, it have cut the transportation costs and improved the delivery times. The technological progress and productively profits in the global marketplace have also lowered the prices on many goods. So the Canadians are increasing a strong reliance on international trade, especially in North America.
The Canadian economy is different in every region. Traditionally Ontario has been the economic engine of Canada, because a third from the population lives there and most of the industries establish over there.
Import
The three main import countries of Canada are Japan, the United Kingdom and the U.S.A. According to Statistics Canada, the import has been increased from 2001 to 2005. In 2001 the total imports was $ 350,071.2 million and it increased in 2005 to
$ 386,906.9 million. So the difference between 2001 and 2005 was an average from
$ 36,835.7 million. Off all the products in 2005, Canada imports a lot of industrial goods and materials (especially chemicals and plastics), machinery equipment and automotive products. (For the whole table, you can find it on page …… in the enclosure)
All merchandise that comes into Canada must all be clear and subjected to the Customs duty. Unless the goods are duty or tax exempt by the law. The Customs duties are subjected to a special percentage, which is applied to the transaction value (Canadian dollars) of the imported goods. All these values of merchandise are determined by the Canada Border Services Agency.
The Goods and Service Tax (GST) is at this moment 7% and this percentage is used on every taxable imports. The Provincial Sales Tax (PST) is generally added to imports which are not for re-sale. There is an agreement between the provinces of Nova Scotia, New Brunswick, Newfoundland and the federal government. In this agreement the GST and the PST taxes are combined into a flat rate of 15%. This percentage is only for those 3 countries and is known as the Harmonized Sales Tax (HST)
Export
Just like the import, the main countries of exporting would be Japan, the U.S.A and the United Kingdom. In 2004 the export was around $315 billion and 85% of this rate went to the US. Last year, in 2005, the total of the exports was $453,600.2 comparing with 2001, it has increased $32869.8.
Canada is one of the only developed country nations that exports energy products. They are also the world’s highest per capita consumer of energy. Cheap energy has enabled the creation to several industries, just like large aluminum industries. Historically the Western Canada is one of the world’s richest sources of energy. The two industrial countries, Southern Ontario and Quebec has fewer native sources of power. In 1988 Canada promised the United States that they will never charge the US more energy than the fellow Canadians (Canada-United States Free Trade Agreement).
Canada also exports industrial goods and materials and machinery and equipment. Comparing with 2001 till 2005 the industrial goods and materials have increased a lot.
Barriers
The import tariffs on forest products have been reduced during the last trade negotiations. The Canadians reduce their import tariffs on forest products globally, this will continue as a priority under the ‘Doha round of World Trade Organization negotiations’. In many export markets tariffs don’t represents a major barrier to trade development. With the decrease in the tariff rates, it has increased the non-tariff barriers (NTB’s).
Non-tariff barriers (NTB’s) or technical barriers cause for exporters many problems, when they are looking for a new market for their products. These barriers can be in the form of regulations, testing, standards and certification procedures. The WTO Agreement wants to ensure, with these barriers, not to create unnecessary obstacles.
NTB’s are government’s policies and it’s not the same as the tariffs, which restrict international trade. Examples that may have impact on the different industries are:
- discriminatory government procurement practices
-
import quotas
- technical and scientific barriers
- environmental labeling
- codes and standards
- recycling content policies
→ At the enclosure you’ll find:
- Merchandise Trade of Canada (monthly) at page …..
- Imports of goods on a balance-of-payment basis (per product) at page….
- Exports of goods on a balance-of-payment basis (per product) at page…
- Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping at page ……
- More import & export tables of Canada at page …….
{Canada’s trading agreements:
* North America Free Trade Agreement (NAFTA)
This group provides the elimination or progressive reduction of tariffs between Canada, the U.S. and Mexico. An reduced tariff is only able to goods when its qualified under the agreement as originating goods.
* General Preferential Tariff (GPT)
This provides a duty-free entry for direct import into Canada of eligible goods of certain countries.
* The Convention on International Trade in Endangered Species (CITES)
Only for wild fauna and flora. It provides the seizure of shipments, which is forbidden under this agreement and the assessment of fines.
* Asia Pacific Economic Cooperation (APEC)
This considers the elimination of tariffs among the Pacific Rim members (Brunei, Canada, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Philippines, Singapore, South Korea, Taiwan, Thailand and the U.S.)
* Canada-Israel Free Trade Agreement (CIFTA)
The elimination of barriers to trade in goods between Canada and Israel. It promotes the conditions of a fair competition and increase investment opportunities in the free trade area. The goods is only qualified under the agreement as originating goods.
* World Trade Organization (WTO)
All the agreements above are grouped under the WTO, which is the successor to the General Agreement on Tariff and Trade (GATT). The WTO looks at the global trade in goods and services and negotiated in the different agreements. The aim of this organization is to help trade flow smoothly, freely, fairly and predictably. They:
- Settles trade disputes
- Administrated trade agreements
- Reviews national trade policies
- Assist developing countries in trade policy issues
- Acts as a forum for trade negotiations }
E4. A realistic SLEPT analysis showing relevant factors
In the following pages you’ll find the Social, Legal, Economic, Politic
and the Technology of Canada.
Social
Canada is a big country with a population of 33,098,932 people. The populations are divided in:
- British 28%
- French 23%
- Other European 15%
- Asian, African or Arab 6%
- And 6% have an mixed background
A lot of Canadians live in the cities, because it’s close to the southern border. The largest urban areas are in Québec and Ontario provinces, or Central Canada, where two-thirds of the population lives. French and English are the official languages, although English is more widely spoken language than French. There are many people immigrating to Canada.
The age structures in this country are as follow:
- 0 – 14 years: 17.9% (male 3,016,032 and female 2,869,244)
- 16 – 64 years: 68.9% (male 11,357,425 and female 11,244,356)
- 65 years and older: 13.2% (male 1,842,496 and female 2,475,488)
The conclusion of the median age is that the female Canadians are living longer than the males. Female could be around 39 years old and the male around 37 years old.
When we talk about religions, a lot of people in different countries are from religion Roman Catholic. In Canada there are 42.6% Catholic. 23.3% are Protestant, Christian people 4.4%, Muslim 1.9%, other religions 11.8% and 16% don’t believe in it. If we compare this with the Netherlands, there are a few differences. Most of the populations are Roman Catholic, just like Canada. But the Dutch people developed a own religion; the Dutch Reformed. 13% believes in that, but 41% don’t have a religion. That’s a huge difference.
The population rate of Canada was in 2005 0.9%. Per 1,000 populations the birth rate was 10.84 and the death rate 7.73 the birth rate in the Netherlands is a little bit higher than in Canada, namely 10.9 per 1,000 populations. The death rate is at this moment 8.68 per 1,000 populations. Both countries the literacy begins at an age of 15 years and older.
The immigration has contributed significantly two-way relations. About 400,000 Dutch persons are permanent residents of Canada. And in 1996 124,545 residents of Canada are born in the Netherlands; that’s about 0.4% of the Canadian population. The Embassy concludes that between 4500 to 5000 Canadians live in Holland.
The family types are nowadays very different. Couples want fewer children and marriages don’t take a lifetime anymore.
Canadians think themselves as healthy people. A quote from a Canadian:
“Compared with people from other countries, we live longer and suffer from fewer chronic illness and disabilities as we age.” But it’s not the same for all the Canadians; there are a lot of differences from coast to coast. Factors (like age, sex, place of residence and economic) can have an impact on well-being. In 1998, the United Nations reports that Canada has an ‘enviable standard of living’. But not everyone in Canada has an equal opportunity to enjoy it.
The education in this large country has been increased during the years. More and more people wants to improve their skills by taking an training or education to go higher up in the job function. Compared to a couples years ago, people have more certificates, diplomas and degrees.
Legal
Canada’s legal represents the many different cultures and regions across the country. The Canadian law has become a written record of many aspects of the Canadian life. It describes for example how medical examiners are appointed in Nova Scotia and how quality standards are set for Canadian products. The legal system governs the public and the private affairs of Canadians and it
Supreme Court of Canada ^ balance the rights of individuals and the public interest.
Through all the criminal statutes, the law defines against the state and their citizens. The Charter of Rights and Freedoms guarantees all individual rights and freedoms for every Canadian person. Private or civil law concerns about how we can relate to each other in the day-to-day life through laws. Like governing families, property, business, contracts and other daily affairs. Our laws mirror those values that every Canadian people think that it’s important and demonstrate how they will be protected.
Laws of Canada
The ‘Constitution of Canada’ is the supreme law of Canada under which all laws must conform. It has three primary parts:
-
The Constitution Act, 1867 (is the basis system. It provides a federalist system where powers of government are divided between the federal and provincial governments.)
-
The Constitution Act, 1982 (entrenched the entire Constitution of Canada. It provides a power to strike down the inconsistent laws and amendment formula.)
-
The Charter of Rights and Freedoms (contained the Constitution Act, 1982. It provides an entrenched bill of rights.)
With the ‘common law’, all the courts have to follow the decisions of the senior courts. The inferior and superior courts of the provinces are not bound by the courts of any other provinces; their decisions are treated as a persuasive law. But it will be often followed as binding, only the Supreme Court of Canada can bind all the courts in the country with a single ruling.
^ Parliament Hill Ottawa
Economic
The Canadian economy has grown more rapidly than the other developed countries. This success is all thanks to the low inflation, low interest rates and a low Canadian dollar. All this helped exports to grow. Canada is moving to a knowledge-based economy built on innovations and technologies. Their knowledge-intensive industries are generating advances in our ability to produce high-tech machinery and equipment. They have reached into the global marketplace to find buyers for their products. Canadian trade continues to grow beyond our borders. The expansion of trade is critical to the structure of our economy.
Canada’s economic health is close to a number of factors:
- The wealth of natural resources
- The health of financial and service sectors
- The strength of its manufacturing and construction industries
- Dynamic trade relationships with other nations
- Distances between 2 countries using communications and transportation technologies
- Canada’s ability to complete in a global marketplace
In 2004 the Canadian GDP (Gross Domestic Product) was 2.9% and in 2006 it grows to 3.1%. From 1986 to 1995, the economy grew 20.4% and reached a GDP of $776.3 billion. The largest impact on the Canadian economy was probably the rise of the Canadian dollar after years of decline against its American counterpart. By the fall in 2003, the dollar had reached levels not seen for over a decade. Many Canadian exporters saw their profits fall.
NAFTA’s signatories are Canada, Mexico and the United States. To encourage trade, the agreement eliminate the tariffs on goods and services (that’s being traded), and the reduction of other barriers to trade.
The economic of Canada continues to grow. Since the end of 2004 the Canadian economy has already created 137,000 net new jobs (all of them full-time). By eliminating these costs, the businesses are better able to realize their full potential by operating in a larger, more integrated and efficient North American economy. For the consumers this is a great benefit, because businesses will compete each other with producing better products, services and prices.
Inflation is a general increase in prices across the economy over a period of time. The most commonly gauge for measuring inflation would be Consumer Price Index (CPI). In the 1990s and in 2000, Canada’s inflation rate was quite low; it was about 1% to 3%. In the 1980s the inflation rate exceeded 10%. When the prices increase (but your earnings stay the same), businesses cannot consume as much as before. High inflation makes it more difficult for the families, businesses and governments to plan for the future.
(For the inflation rate of Canada, look in the enclosure at page …… )
• = the Netherlands • = Canada
In 2004 the unemployment in Canada was 7.3%, it was above the ‘Organization for Economic Co-operation and Development’ (OECD) average of 6.9%. But the long-term unemployment in 2004 was 9.5%, which was the lowest in the OECD. Compared with the Netherlands, the unemployment rate for long-term was exceeding the average. While the normal unemployment rate, for the Netherlands, was around 4.9%.
Several Canadians have developed different strategies for unemployment; it helps them to fit in the ‘globalize’ labor markets. By a growing international trade and foreign direct investment, it has the potential to raise the real incomes, living standards and new jobs in expanding sectors. While the international economic is still growing, it has proven the overall employment and unemployment in Canada during the past decade.
Trade and the economic interests between the U.S. and Canada make this a unique partnership. We talk about the scope and scale of goods, services, investment, people and the ideas between these two countries. It makes them more internationally competitive, provides consumers and producers with a greater difference in goods and services at lower prices and it improve the standard of living in both countries. The U.S. and the Canada trading make the largest relationship in the world.
Canada has been the leading destination for the U.S. exports since 1946. They exports from cars to computer. Canada buys more goods and services from the U.S. than any other country in the world. One-fifth of all the U.S. exports went to Canada in 2003. For Canada the U.S. is the largest foreign investor and most of the Canadian investments are destined over there.
Politic
Princess Juliana and her family lived in Ottawa during the occupation, and Canada forces the liberation of the Netherlands. The military connections are maintained through training programs for the Dutch forces in Canada, and through the Canadian Forces Attaché office in The Hague (in the Netherlands). Queen Elizabeth II is the head of the state. She representative the Governor-General of Canada.
Canada is a constitutional monarchy with a federal system of parliamentary government. And has strong democratic traditions. The political system of Canada is based on the British Westminster model with American influences. In June 1867 started the British North America Act of 1867. The British parliament has an influence on the Canada. If they want to change the law, London needs to approve it. In 1982 comes an end to this and Canada becomes completely independent. The party discipline is in Canada also much stronger than in the UK.
Now the politics are developing. The size of the federal public service and their operational powers are felt to qualify the Public Service as a Operational Branch of the government. Canada is becoming more like a constitutional democracy.
The bicameral Parliament consists of the Senate and the House of Commons. At this moment the Senate is limited to 104 members, who are appointed by the general governor. The number of senators was exceeded once when the Prime Minister (Brain Mulroney) was searching to ensure the passage of a national sales tax. The House of Commons has currently 308 members.
The monarchy is hereditary. During the monarch, on advice of the prime minister, the general governor will be chosen for a five-year term. Following legislative elections, the leader of the majority party in the House of Commons is automatically designated by the general governor to become the prime minister. Just like in the Netherlands, citizens aged 18 years and older can vote during elections. Only 2 adult persons cannot vote, which is: the Chief Electoral Officer and the Deputy Chief Electoral Officer.
The last election that was held in the House of Commons was on January 23, 2006. The votes by party were (and the total seats per party):
-
Conservative 36.3% → 124 seats
-
Liberal Party 30.2% → 103 seats
-
New Democratic Party 17.5% → 29 seats
-
Bloc Québécois 10.5% → 51 seats
- Green Party 4.5%
-
Other 5.6% → 1 seat
For a whole summary of the election of 26 January 2006, please check the enclosure on page……
The following map shows the provisional results of the 39th Federal Election, which was held on January 23, 2006.
Technology
Canadians are very aware of the increasing economic development, globalization and population growth. Slowly economic growth would only reduce the quality of life. They need new environmental and energy technologies to ensure a long-lasting development, so that we will continue to enjoy the benefits of a healthy environment.
Canadian companies are main leaders in the development of environmental and energy technologies. The Government of Canada supports the Canadian environmental companies. These companies have great ideas to allow them to build on their strengths, it balance the economic growth with environmental protection.
Technology Partners Canada (TPC) enables companies to develop their technologies further and pursue them into breakthroughs in the development of energy alternatives, and in decreasing and preventing pollution. Environmental R&D investments divide Canadian technologies into five key-areas:
- environmental media (for example clean water and waste reduction)
- eco-efficient industrial practices
- improved energy efficiency
- energy sources (like hydrogen and fuel cell technologies)
- and renewable energy
TPC is a special operating agency of industry Canada. And their goal is to provide funding support for strategic research and development, and demonstration projects will produce the economic, social and environmental benefits to the Canadians. They work together with other government departments and levels of the government to maximize their investment in key emerging technologies.
Canadian industries are taking the lead in bringing innovation to the marketplace. Businesses are trying to invest a successful development of key technologies that will be a benefit for Canadians in their everyday lives. Canada is a world leader in the evolution of a hydrogen economy. Many businesses use a special program, it’s called ‘h2 Early Adopters (h2EA) program. This program encourage companies to work together to demonstrate the potential of these important technologies.
The benefits of TPC investment are:
- Reduced health care costs and new diagnostic technologies and treatments
- Improved communication and connectivity
- Increased public safety and security for Canadians
- Improved transportation
- Benefits to Recipients and Industry
- Enhancing the skill-set and capabilities of the company
- Increasing Canada’s Innovation Capacity
- Spin-off benefits for supplier companies
- Development of key technology
- Create and maintain high-quality jobs in Canada
- Increased personal taxes for provincial and federal governments as a result of jobs
- Spin-off job creation at suppliers and support companies
- Ensuring opportunities for highly trained graduates in Canada
- Environmental sustainable technologies
- Reduced emissions
- Promise of a cleaner, more environmentally friendly future for industry
E5. A straightforward recommendation as to whether the business should trade there
Canada and the Netherlands
Canada and the Netherlands have both a mature relationship based on political, investment, trade and cultural relations. Both countries are strong parliamentary democracies and have a great importance in the law. They respect for the individual and the protection of human rights (which both governments now consider the core of human security).
The two-way trade between the Netherlands and Canada in 2002 was totaled $3.2 billion, which $1.7 billion of the Canadian export sales to the Dutch market. The Netherlands is one of the few countries in Europe where Canada have a positive trade balance in post-war years. The Netherlands is Canada’s fourth largest investor, behind USA, France and the UK.
Canadian exports to the Netherlands mostly primary and semi-fabricated materials. Although the manufactured products (computer and office equipment, electronics, machinery and instrumentation) is at this moment rising. Aluminum, forest products machinery, medical instruments, organic chemicals, mineral fuel, nickel and grain are the most important categories of export.
Imports from the Netherlands to Canada were $1.5 billion in 2002. Machinery, mineral fuel, electrical machinery, medical instruments, photographic equipment and film, chemicals, plants and drinks are the most important categories of import.
The Dutch investments in Canada have been doubled since the 1990s and it stands at $13.8 billion. There are many Dutch multinational companies active in Canada, for example Philips, Unilever, Shell, ING Group.
For Canadian companies, whose European Union market involves direct investments, the Netherlands is a popular entry point. The Netherlands has a stable economy, strategic location, well-developed infrastructure, transportation facilities, use of international languages and long-standing relationship with Canada. They offer Canadian businesses comparatively straightforward access to one of the largest and richest trading blocs.
More than 80 Canadians companies have established operations in the Netherlands and together their investments are a total of $13.7 billion.
When a new business wants to export their goods to a foreign country, they have to do some research first before they export their goods and/or services. It is very important for a business, that they get to know the country well and also whether this country is profitable or not.
During this report I did some research about the country: Canada.
I think Gemos BV should trade with Canada. Because, during this research, I found out that experts said that 37 countries count Canada as their number one foreign customer. Not only have their economic grown each year, but also because they produce a lot of products. For the most of the states, Canada is the most important destination when it comes to exports. In 2003, 23 countries sent more than a quarter of their exports to Canada.
Europe said that, after the USA, Canada is the most important partner. If Europe continues to move to a powerful and influential unity, the importance to Canada will also increase. This also includes the economic area that has been expanding the last couple years. Some increases in our exports are in the high value-added sectors of the Canadian economy, just like the information and communication technology, life sciences and the transportation industries.
Trading with other countries gives our business an international ‘reach’ into the global economy (including the NAFTA market). But it’s also a benefit that trading with foreign countries, it will improve the managerial, marketing and technological capabilities of our businesses.
Trade also creates jobs indirectly. It allows firms to obtain inputs to production that are cheaper or has a higher quality. For example; imports of high-tech equipment have helped a lot of U.S. businesses to reduce their costs, improve the productivity and decreased the competitiveness in the world markets. An advantage for both countries that trade with each other, consumers will have a better variety and better prices for the goods and services. The savings that the consumers have is moreover enjoyable; they have the availability to pay a low-cost goods or services with an high quality.
E6. A clear presentation of the outcomes of your investigation including reference to the sources of information you have used
Please check the PowerPoint presentation in the following diskette.
C1. Reasoned judgement as to whether this business is actively involved in trading
International trade is becoming more and more important to many countries and businesses.
Gemos BV is actively involved in the trade world. They don’t produce the flowers themselves, so it makes them a trade company.
C2. A justified recommendation as to whether the business should trade in the identified market
Resources
* wikipedia
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* and all the small information’s are from
