StockGuru Canada

Why invest in Canada?

Canada has one of the most dynamic economies in the world.  Here are some of the key reasons why investing in Canada makes sense.

People AdvantageS

Canada is a nation of well-educated and intelligent people.  Canada has the best educational systems in the G-7 and also attracts the best and brightest through business-friendly immigration policies.  More than half of the working age Canadians have attained a college education, and 42% of all immigrants have completed college as well.

The World Economic Forum ranks Canada first in the G-7 and third in the world on the quality of management schools.  In Business Week Magazine’s 2008 MBA Survey, three Canadian business schools finished in the top 10 outside the United States.

The availability of qualified engineers is greater in Canada than any other G-7 country.

Business Environment AdvantageS

Canada has created an environment to encourage business success.  In 2009, the IMD World Competitive Yearbook, has forecast Canada as the #1 place to do business in the G7 for the next five years.

Canada is the America’s largest trading partner.  Europe also provides tremendous trade opportunities for Canada.  Canada has exceptional access to Asia-Pacific markets, and is well-positioned to capitalize on the long-term growth potential of Asian economies.  Canada has invested over $1billion into the Asia-Pacific Gateway and Corridor Initiative to support stronger infrastructure links among Canada, NAFTA and Asia-Pacific markets.

Canada has invested billions of dollars over the decade to create a research and development climate.  The Canadian Foundation for Innovation funds technology clusters across the country in different industries from pharmaceuticals to information and communication technologies.

American producers recognize Canada’s leadership in fiber optics, aerospace, and biopharmaceuticals.

Economic Advantages

Three factors give Canada the ability to weather the global recession better than any other.  Canada has a sound and prudent fiscal policy, and a track record of good macroeconomic policy, and a focus on financial stability.  Plus, Canada has low inflation, interest and unemployment rates.

Canada is quickly becoming an energy superpower, and the country is making strategic investments in technology, education, and health care.

Dun and Bradstreet’s’ Global Risk Indicator, ranks Canada as one of the safest countries to invest in.  And, its debt to GDP ratio is the lowest of the G7.

The World Economic Forum’s Global Competitiveness Report indicates that Canada has the soundest banking systems in the world, with well-regulated financial institutions and stock exchanges.

Tax Advantages

The World Trade Magazine has ranked Canada in the Top 3 for investment and trade opportunities because Canada offers low tax rates, low payroll rates, a corporate tax rate that will be less than half of the US rate by 2012.  In this year, Canada is expected to have a corporate tax rate that is 13 percentage points lower than that of the U.S.

The government welcomes foreign investment through incentives such as financial support for foreign investment and technology advisors assigned to foreign subsidiaries.

To support technological advancement, Canada gives tax credits to businesses involved in research and development and the Business Development Bank of Canada fund companies with a basis in technology.  Intelligence system projects are funded if they involve the participation of two companies and one university.

Finally, film tax credits are given to help the film industry in Canada.

Tariff and Foreign Trade Zone Advantages

Canada eliminates tariff on manufacturing imports, and this applies anywhere in the country unlike other countries that focus on location-specific foreign trade zones.  The country understands open markets for international investors.

By eliminating the tariffs on manufacturing and processing equipment, profits can be increased to foreign investors.  Because Canada is a tariff-free zone for industrial manufacturers, it a very attractive place for investors.

Asia-Pacific Gateway and Corridor and Initiative (APGCI)

This agreement allows Canada to take advantage of Canada’s location, between the North American marketplace and Asia, especially China.  Improvements in infrastructure has helped to swiftly move merchandise to transportation hubs.

Transportation Advantages

Canada is the second largest country on earth, with six time zones and 9,970,610 square km, and has a highly developed infrastructure and transportation network.  With 26 airports, 300 commercial ports, 33,000 miles of rail, 900,000 km of roads fully integrated with the US road network, Canada is well-prepared to transport goods.

Lifestyle AdvantageS

Canada offers a beautiful landscape and an enviable quality of life, where families can realize their dreams and businesses can enjoy a competitive edge.

The people are hard-working and ambitious, and believe in justice and tolerance and providing a helping hand to the less fortunate. 

Canada is considered the safest place to live with a fair justice system.