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    1. Introduction

    Canada is a North American country consisting often provinces and three territories. There

    are several industries in Canada. Under manufacturing industry aerospace and defense is one

    of them.

    Canadian aerospace and defense, space and defense firms, have built successful businesses

    in Canada for domestic and global markets. Canadian priorities encourage investment in

    knowledge-based businesses across the industrial spectrum, and a strong focus on innovation.

    Canada supports its aerospace and defense, space and defense industries through attractive

    investment fundamentals; leading-edge knowledge infrastructure; risk-sharing investments in

    technology development; commitment to investing in skills and research; and new business

    opportunities.

    Aerospace and defense is a vital and growing component of Canada's economy, a leading

    employer and contributor to research and development as well as the country's top exporter of

    advanced technology. Canada is one of only a handful of nations with a full range of

    aerospace and defense design and manufacturing capabilities. Although a number of

    companies are subsidiaries of foreign corporations, in many cases they have been assigned -

    and capitalized on - mandates to manufacture for the world market. The industry represents

    the best in aircraft, electronics, avionics, communications, simulators, space technology,

    repair and overhaul, gas turbine engines and engineering.

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    2. Country Analysis

    2.1 Country Profile:

    Canada is a North American country consisting of ten provinces and three territories.

    Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to

    the Pacific Ocean in the west, and northward into the Arctic Ocean. Spanning over 9.9

    million square kilometers, Canada is the world's second-largest country by total area, and its

    common borderwith the United States is the longest land border in the world. Canada is a

    federation under a system of parliamentary monarchy. They are ruled by Queen Elizabeth II

    of Great Britain, who is represented by the Governor General, a symbolic figure with no real

    authority. Executive authority lies with the prime minister, who is generally the leader of the

    political party with the greatest number of benches in the House of Commons. The prime

    minister in turn names his cabinet positions from the House (Enciso 2007, 104). Canada is

    divided into ten provinces: Alberta, British Columbia, Manitoba, New Brunswick,

    Newfoundland and Farmer, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan.

    There are also three territories: the Northwest, the Yukon, and Nunavut.

    Canada covers most of the North American continent with a surface area slightly

    greater than that of the United States. Canada shares an 8,893 kilometer border with the same,

    extending from the Atlantic Ocean in the east to the Pacific Ocean in the west. Canada covers

    41% of North America and has the second most surface area of any country on Earth .It has a

    varied topography and is rich in natural resources. Canada has huge reserves of oil and large

    quantities of fresh water sixty percent of the worlds lakes are in Canada. The southern part

    of the country boasts a robust agricultural sector. At that time most of the population was

    French but in the following decades thousands of British colonists immigrated to Canada

    from the British Islands and the American colonies. In 1873 a parliamentary federal

    government was established under the British crown. Canada was proclaimed an

    independent dominion within the British Empire in December of 1931. The British crown

    became monarch of Canada. The British parliament granted direct authority to the Canadian

    parliament to run day-to-day operations, although important legal decisions were still made

    back in the United Kingdom. Canada finally obtained its constitutional autonomy in 1982.

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    2.2 Macro-environmental Factors:

    A macro environmental analysis can be completed alone or in a brainstorming session,

    however doing some research before starting.

    To simplify the Macro Environment Analysis the following 6 broad heading will provide

    some structure, a good start is to list all of the trends you can think of or can find and indicate

    whether they will have a positive impact or negative impact on the size of your industry.

    2.2.1 Economic Trends:

    GDP output in August rose 0.3% following an upwardly revised 0.4% rise in July, originally

    reported as up 0.3%. All of the strength in the month was in the goods-producing side of the

    economy where activity rose 0.9% following a revised 0.7% gain in July (was 0.4%). These

    increases along with a 0.6% rise in June have more than offset the 1.7% drop in goods-

    production that occurred in May where various factors including wildfires in Northern

    Alberta weighed on the mining sector. Service-producing industries were unchanged in

    August though this followed an upwardly revised 0.3% gain in July (0.2% previously). The

    strength in goods-producing industries largely reflected a 3.3% jump in mining output. This

    in part reflected a 2.6% jump in oil and gas extraction though the mining support component

    soared 16.5% in the month reflecting increased drilling activity. Manufacturing fell 0.4% in

    the month despite motor vehicle production rising a robust 3.9%. The offset was mainly in

    various nondurables.

    Components declining in the month including: non-metallic mineral products, wood products,

    chemicals and paper products. The latter three components all showed sizeable gains in July.

    In terms of the other major goods producing industries, utilities fell 0.8% after a 1.4% jump

    in July while construction was up a modest 0.1%. Within-service-producing industries,

    financial services managed to rise 0.6%. However, this was offset by sizeable declines inwholesale trade (1.4%) and the arts and entertainment component (1.4%). The former

    followed a 1.8% jump in July.

    Canadian employment fell by 54,000 in October. The labor force contracted by 13,800 in

    October and the unemployment rate rose to 7.3% from 7.1% in September. The October

    report showed a decline in employment in the goods producing industries where the number

    of employed fell by 51,900. Construction (-20,100) and manufacturing (-48,400) jobs were

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    cut in the month. In the services side of the economy, employment dipped by 2,000. All jobs

    lost were fulltime with 71,700 positions cut. Part-time employment rose by 17,700. On net,

    full-time employment is still up by 198,200 in 2011. The public sector shed 3,800 positions.

    Private sector employment reported 32,000 jobs cuts.

    Still, the declines over the three month period only reversed 71% of July's 94,500 surge. The

    number of self-employed individuals was down by 18,100 following the 38,900 increase in

    September. The year-over-year gain in average hourly wages for permanent workers slipped

    to 1.3%, a tad slower than September's 1.6% pace and still well below the average 2.3% in

    the first half of the year.

    2.2.2 Political and Legal Factors

    The political-legal dimension of the general environment also affects business activity. The

    philosophy of the political parties in power influences business practices. The legal

    environment serves to define what organizations can and cannot do at a particular point in

    time. The legal environment facing organizations is becoming more complex and affecting

    businesses more directly. It has become increasingly difficult for businesses to take action

    without encountering a law, regulation, or legal problem. A very brief listing of significant

    laws that affect business would include legislation in the areas of consumerism, employee

    relations, the environment, and competitive practices. Many of the laws also have an

    associated regulatory agency. Powerful U.S. regulatory agencies include the Environmental

    Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the

    Equal Employment Opportunity Commission (EEOC), and the Securities and Exchange

    Commission (SEC). Estimates of the cost of compliance vary widely, but could well exceed

    $100 billion annually. Many of these costs are passed to consumers. However, costs of legal

    expenses and settlements may not be incurred for years and are not likely to be paid by

    consumers of the product or owners of the company when the violation occurred. Still,

    potential legal action often results in higher prices for consumers and a more conservative

    attitude by business executives.

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    2.2.3 Technological Factors:

    Technology is another aspect of the environment a firm should consider in developing

    strategic plans. Changing technology may affect the demand for a firm's products and

    services, its production processes, and raw materials. Technological changes may create new

    opportunities for the firm, or threaten the survival of a product, firm, or industry.

    Technological innovation continues to move at an increasingly rapid rate. Technology can

    change the lifestyle and buying patterns of consumers. Recent developments in the field of

    microcomputers have dramatically expanded the potential customer base and created

    innumerable opportunities for businesses to engage in business via Internet. Whereas

    computers were traditionally used only by large organizations to handle data processingneeds, personal computers are commonly used by smaller firms and individuals for uses not

    even imagined fifteen years ago. Similarly, new developments in technology led to a

    reduction in prices for computers and expanded the potential market. Lower prices allow

    computers to be marketed to the general public rather than to business, scientific, and

    professional usersthe initial market.

    Technology may also cause certain products to be removed from the market. Asbestos-related

    illnesses have severely limited asbestos as a resource used in heat-sensitive products such as

    hair dryers. Further, a number of chemicals that have been commonly used by farmers to

    control insects or plants are prohibited from use or require licensure as a consequence of

    those chemicals appearing in the food chain.

    2.3 Goods Are Traded:

    Although Canada is heavily involved in international trade, the US is by far its largest and

    most important trade partner. In 2009, 75.02 percent of Canadian exports were directed to the

    US, while 51.1 percent of imports came from the US.

    Bilateral trade between Canada and the US increased by 52 percent between 1989 (when the

    US-Canada Free Trade Agreement (FTA) came into effect) and 1994 (when the North

    American Free Trade Agreement (NAFTA) was implemented). Although NAFTA

    dramatically improved US-Canada trade relations, disputes still remain that pertain to

    intellectual property rights, softwood lumber, beef, tomatoes and other agricultural products.

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    Canadas Imported and Exported goods Indicators and statistics at a

    Glance (2010):

    Total value of Exports: US$406.8 billion

    Primary exports - commodities: motor vehicles and parts, industrial machinery, aircraft,

    telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude

    petroleum, natural gas, electricity, aluminum

    Primary exports partners: US (75.02 Total values of exports: US$406.8 billion

    Primary exports - commodities: motor vehicles and parts, industrial machinery, aircraft,

    telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude

    petroleum, natural gas, electricity, aluminum

    Primary exports partners: US (75.02 percent), UK (3.37 percent), China (3.09 percent)

    Total value of Imports: US$406.4 billion

    Primary imports - commodities: machinery and equipment, motor vehicles and parts, crudeoil, chemicals, electricity, durable consumer goods, Agricultural and fishing products

    Fruits and vegetables, Other agricultural and fishing products, Energy products, Crudepetroleum, Forestry products, Industrial goods and materials, Metals and metal ores,Chemicals and plastics, Machinery and equipment,Primary imports partners: US (51.1 percent), China (10.88 percent), Mexico (4.56 percent)

    Statistical datas are given in Appendix through Appendix

    Figure 1: Revenues from sales of environmental goods and services, by industry

    Figure 2: Imports of goods on a balance-of-payments basis, by product

    Figure 3: Exports of goods on a balance-of-payments basis, by product

    Figure 4: Imports, exports and trade balance of goods on a balance-of-payments basis, by

    Country or country group.

    2.4 Country SOWT analysis according to economic condition:

    SWOT analysis is a method for analyzing a business, its resources, and its environment.

    SWOT is commonly used as part of strategic planning and looks at:

    1. Internal strengths

    2. Internal weaknesses

    3. Opportunities in the external environment

    4. Threats in the external environment

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    SWOT can help management in a business discover:

    1. What the business does better than the competition

    2. What competitors do better than the business

    3. Whether the business is making the most of the opportunities available

    4. How a business should respond to changes in its external environment

    Figure 1: Canada SWOT analysis

    3. Industry Analysis :

    On the base of goods and services Canada include four types of industries:

    Manufacturing Industries

    Resource Industries

    Service Industries and Consumer Products

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    STRENGTHS

    - formidable natural boundaries/barriers

    - strong alliances

    - planned security enhancements

    - stable parliamentary democracy

    - sound financial system

    - low corruption

    - strong GDP

    - life expectancy 80 years

    - 99% literacy rate

    - rich in natural resources

    - no internal or external armed conflicts

    - low crime rate

    WEAKNESSES

    - lingering threat of Quebec secession

    - small population & budget

    - vulnerable to US pollution spillovers

    - world-wide financial crisis supplementary

    - difficult control of territory

    - need for immigrants

    - aging population

    - little leadership in the world-wide scene

    THREATS

    - terrorism

    - WMD

    - natural disasters

    - transnational organized crime

    - pandemics

    - critical infrastructure vulnerabilities

    - linked to US in eyes of terrorists

    - linked to economic fallout of WMD

    attack on the US

    - climate change in some regions

    OPPORTUNITIES

    - free ride off US security enhancements

    - increasing global leadership

    - bridge transatlantic gap; energize NATO

    - strong economic future (oil, fresh water)

    - flexibility in national approach

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    Technologies

    Above the sectors mentioned, there several categories in manufacturing industry. Thecategories are listed below -

    Manufacturing Industries:

    Aerospace and defense

    Apparel

    Assistive devices

    Automotive

    Boats, recreational

    Chemicals

    Commercial printing

    Footwear

    Forest industries

    Fuel cells (see Hydrogen and fuel

    cells)

    Furniture

    Giftware and crafts

    Household appliances, major

    Hydrogen and fuel cells

    Information and communications

    technologies

    Medical devices

    Oil and gas

    Pharmaceuticals

    Primary metals

    Rubber

    Shipbuilding and industrial

    marine

    Sporting goods

    Textiles

    3.1 Canadian Aerospace and Defense industry profile:

    Canadian aerospace and defense companies offer aerospace and defense products and

    services to Canada and the world. Home to leading aviation and space companies, Canada is

    a world leader in producing regional aircraft, avionics, business jets, commercial

    helicopters, aircraft engines, flight simulation, landing gear, and space systems and offers

    extensive Aircraft Maintenance Repair and Overhaul expertise. In addition, leading

    aerospace and defense companies from around the world choose to perform their

    manufacturing and research and development activities in Canada.

    Aerospace Industries Products and services:

    i. Aircraft Avionics & Electronics - From airborne radar to redoes.

    ii. Aircraft Engines & Components - From auxiliary power units to turbo shaft

    engines.

    iii. Aircraft Structures, Components & Materials - From actuators to window glazing

    and lenses.

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    iv. Aircraft Systems & Components - From aerial application systems and components

    to wing strike protection systems.

    v. Aircraft, Fixed & Rotary Wing - From amphibious aircraft to unmanned vehicles.

    vi. Airport Equipment - From airport information systems to passenger handling

    systems and equipment.

    vii. Composites & Plastics - From composite bonding to plastic components.

    viii. Computer Systems & Equipment - From computer equipment to real-time 3D

    graphical displays.

    ix. Consulting Services - From airport planning consultants to tax services.

    x. Defense Security Systems & Electronics - From C3I to weapons systems

    xi. Aerospace and defense Services - From aerial application and fire fighting to wind

    tunnel testing.

    xii. Air Traffic Control & Management Systems & Equipment - From air navigation

    systems and equipment to radar systems.

    Aerospace and defense Industry's Structure

    In general, the Canadian Aerospace and defense industry includes:

    i. aircraft and engine manufacturing

    ii. components and parts manufacturing

    iii. aircraft maintenance

    iv. airframe repair and overhaul

    v. avionics electronics and information systems

    vi. precise machining and metal fabrication

    vii. composites and exotic metals component production

    viii. specialty coatings

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    ix. space satellites

    x. simulation

    xi. training

    xii. testing

    xiii. consulting services

    Aerospace and defense also includes airlines, military, civil aviation and other buyers and

    users of aerospace and defense goods and services.

    3.2 Aerospace and Defense Industry Statistics:

    Canada is an aerospace and defense world leader. The Canadian aerospace and defense

    industry comprises more than 400 firms located in every region of the country. Collectively,

    these aerospace and defense companies employ more than 80,000 Canadians. Since 1990,

    Canadian aerospace and defense industry sales have more than doubled, reaching $23.6

    billion in 2008.

    In addition, the Canadian aerospace and defense industry is the countrys leading advanced

    technology exporter Canada exports more than 80 per cent of its aerospace and defense

    output.

    Aerospace and defense companies in Canada are global market leaders in regional

    commercial helicopters, aircraft, avionics, business jets, aircraft engines, flight

    simulation, landing gear, and space systems.

    Figure: Aerospace Industrial statistics

    Services offered by Aerospace industry of Canada:

    Airframe structural assemblies

    Wing structure assemblies

    Power conversion and distribution systems

    Integrated electronic controls

    Environmental conditioning systems

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    Air traffic control and management systems

    Aviation communications systems

    Canadian aerospace and defense firms offer innovative solutions backed by sustained

    investment in research and development, and a highly skilled workforce. As a result,

    Canadas aerospace and defense industry is robust and dynamic, with a long history of

    innovation and success throughout the world.

    3.3 Canadas competitiveness:

    The evaluation of the aerospace and defense industry in other leading nations is critical in

    understanding the current position of the Canadian aerospace and defense industry globally.

    Some of the key developed markets in the global aerospace and defense industry are:

    i. France;ii. Germany;

    iii. US;

    iv. UK; and

    v. Japan.

    There is an additional group of nations that are becoming increasingly relevant. It is

    anticipated that many of these developing nations will be heavily supported by their

    governments in the hopes of creating a strong domestic aerospace and defense industry.

    These countries are:

    i. Brazil;

    ii. China;

    iii. India; and

    iv. Russia.

    The countries listed above are chosen based on three criteria:

    1. Representative mix of the different types of aerospace and defense markets;

    2. Global importance of the countrys aerospace and defense industry; and

    3. Availability and consistency of relevant industry data.

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    Canadas aerospace and defense industry plays a critical role in the domestic Canadian

    economy. Canadas aerospace and defense industry ranks among the top 10 globally by

    almost every measure. For example, Table 17 lists the top 5 countries in terms of revenues

    generated from aerospace and defense manufacturing and Table 18 lists the top 5 countries in

    terms of aerospace and defense employment.

    Once normalized by GDP, Canada ranks second among the top five countries in terms of

    aerospace and defense revenue. A similar story is seen in employment once one normalizes

    by each countrys population with Canada also ranking second among the top five countries

    in terms of aerospace and defense manufacturing employment. This analysis shows thatCanada relies more heavily on the aerospace and defense industry for revenue and

    employment than most other countries.

    3.4 Comparing among manufacturing industries

    There are several industries under manufacturing sector. Aerospace is one of the largest

    industries. Comparing to other industry aerospace standing is remarkable, which we can see

    in below statistics.

    Manufacturing Sector

    GDP (millions of chained 2002

    dollars)

    Compound annual

    growth rate

    2001-2010

    %

    Change

    2009-20102001 2010

    Agriculture, Forestry, Fishing and

    Hunting24,674 26,357 0.7% 0.3%

    Mining and Oil and Gas Extraction 51,236 53,930 0.5% 4.8%

    Utilities 27,384 29,845 0.9% -0.2%

    Construction 45,542 63,856 2.9% 6.6%

    Aerospace 50,084 22,740 -1.2% 5.7%

    Figure: Comparing Manufacturing Industries

    3.5 Comparison among aerospace Businesses:

    Research and development spending by the aerospace and defense sector also plays a critical

    role in the Canadian economy; three aerospace and defense companies

    Pratt & Whitney Canada,

    Bombardier, and

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    CAE (Canadian Aviation Electronics Ltd.)

    Figure: Aerospace business comparison

    The aerospace and defense industry generates a significant fraction of Canadas total exports

    at just under 4% in 2008.

    Finally, the importance of Canadas aerospace and defense industry is reflected in Canadas

    reputation as a leader in other countries.

    3.6 Regional Economic Integration:

    Regional Economic Integration: agreements between groups of countries in a geographic

    region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods,services, and factors of production between each other. By entering into regional agreements

    groups of countries aim to reduce trade barriers more rapidly than can be achieved under the

    auspices of the WTO.

    The specter of the EU and NAFTA turning into economic fortress that shut out foreign

    producers with high tariff barriers is particularly worrisome to those who believe in the value

    of unrestricted free trade

    World Trade Organization

    Agreement Partners and Link to Detail "In Force" Date /

    Status

    World Trade Organization (WTO) 01-Jan-1995

    Free Trade Agreements

    Agreement Partners and Link to Detail "In Force" Date /

    StatusNorth American Free Trade Agreement (NAFTA) 01-Jan-1994

    Canada - U.S. Free Trade Agreement (CUSFTA) *now 01-Jan-198913

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    NAFTA (superseded by NAFTA,

    which includes Mexico)

    Canada-Panama Free Trade Agreement (FTA) Signed

    14-May-2010

    Canada - Jordan Free Trade Agreement (FTA) Signed

    28-June-2009

    Canada - Colombia Free Trade Agreement Signed

    21-Nov-2008

    Canada - Peru Free Trade Agreement 01-Aug-2009

    Canada - European Free Trade Association (EFTA) 1-Jul-2009

    Canada - Costa Rica Free Trade Agreement (CCRFTA) 01-Nov-2002

    Canada - Chile Free Trade Agreement (CCFTA) 05-Jul-1997

    Canada - Israel Free Trade Agreement (CIFTA) 01-Jan-1997

    Foreign Investment Promotion and Protection (FIPAs)

    Agreement Partners and Link to Detail "In Force" Date /

    Status

    Canada - Peru Foreign Investment Promotion and Protection

    (FIPA)

    20-Jun-2007

    Canada - Croatia Foreign Investment Promotion and Protection

    (FIPA)

    30-Jan-2001

    Canada - Costa Rica Foreign Investment Promotion andProtection (FIPA)

    29-Sep-1999

    Canada - Lebanon Foreign Investment Promotion and

    Protection (FIPA)

    19-Jun-1999

    Canada - Uruguay Foreign Investment Promotion and

    Protection (FIPA)

    02-Jun-1999

    Canada - El Salvador Foreign Investment Promotion and

    Protection (FIPA)

    Signed

    31-May-1999

    Canada - Armenia Foreign Investment Promotion and

    Protection (FIPA)

    29-Mar-1999

    Canada - Thailand Foreign Investment Promotion and

    Protection (FIPA)

    24-Sep-1998

    Canada - Panama Foreign Investment Promotion and Protection

    (FIPA)

    13-Feb-1998

    Canada - Venezuela Foreign Investment Promotion and

    Protection (FIPA)

    28-Jan-1998

    Canada - Egypt Foreign Investment Promotion and Protection

    (FIPA)

    03-Nov-1997

    Canada - Ecuador Foreign Investment Promotion and

    Protection (FIPA)

    06-Jun-1997

    Canada - Romania Foreign Investment Promotion and

    Protection (FIPA)

    11-Feb-1997

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    Canada - Barbados Foreign Investment Promotion and

    Protection (FIPA)

    17-Jan-1997

    Canada - Philippines Foreign Investment Promotion and

    Protection (FIPA)

    13-Nov-1996

    Canada - Trinidad and Tobago Foreign Investment Promotion

    and Protection (FIPA)

    08-Jul-1996

    3.7 Trade Regulations of Aerospace Industries:

    3.7.1 Trade Policy and Economy

    Canada's liberal trade regime has facilitated the economy's successful adjustment to a number

    of external shocks, and helps explain Canada's good economic performance during the last

    several years. However, productivity growth remains relatively slow, compared to other

    developed economies. Certain trade barriers still persist in some agricultural activities. In the

    second quarter of 2007 gross domestic product grew 3.4%, down from 3.9% in the first

    quarter but more than double the average pace of growth in the last three quarters of 2006.

    Domestic demand growth remained solid in the second quarter, with 4.3% growth compared

    to 2.8% in the previous quarter. Consumer spending, residential investment and business

    fixed investment all showed healthy gains. In August, the unemployment rate was 6% - the

    lowest level in the past three decades.

    3.7.2 Import Controls and Licensing

    Most Aerospace goods can enter the Canada market without import restrictions. However,certain commodities are prohibited from importation under the provisions of the Canadian

    Customs Tariff regulations, while others are regulated under the Export and Import Permits

    Act.

    The Export and Import Controls Bureau (TPI) is responsible for administering the Export and

    Import Permits Act. The import Controls List comprises textiles and clothing, agricultural

    products, steel products and weapons; whereas the Export Controls List contains agricultural

    products, refined sugar, peanut butter, textiles and clothing, weapons and nuclear energy

    materials and technology, dangerous goods etc.

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    3.7.3 Product Standards and Requirements

    The National Standards System is the system for developing, promoting, and implementingstandards in Canada and the Aerospace industries maintaining standard in all types of

    products to provide best to their customers. If certification of an Aerospace and Defense

    product is required, it should be obtained before the goods are imported into Canada.

    Additional and requirements may be imposed at the provincial level. The contact point in

    Canada concerning product standards and requirements is the Standards Council of Canada.

    3.7.4 Marking and Labeling

    Country of Origin marking is required on many categories of imported merchandise. Goods

    with no proper country of origin indication cannot be released from Customs until they are

    suitably marked. Aerospace requires bilingual labeling in English and French for most

    products, showing product identity declaration in common generic name, and net quantity

    declaration expressed in metric units of weight volume or numerical count, as applicable.

    Dealer's name and place of business must also appear on the labels.

    3.7.5 Customs Tariff and Tax

    Canada adopts the Harmonized System (HS) of the Tariff Schedules. All commercial imports

    are subject to customs duty and the goods and services tax (GST) unless exempted. Duties are

    assessed on the transaction value (the price actually paid or payable for the goods), including

    commission, brokerage, packing, royalties and transportation to the Canada point.

    Hong Kong and China origin goods are eligible for the preferential tariffs under the Canadian

    General Preferential Tariff Scheme. A provincial sales tax is assessed on all imports to

    British Columbia (7.5% of the duty paid value), Manitoba (7%), Prince Edward Island (10%),

    Quebec (7.5%) and Saskatchewan (6%). In addition, a broad-based value added sale tax,

    known as the goods and services tax is levied at 7%. In the three Atlantic Provinces

    (Newfoundland, New Brunswick and Nova Scotia), these taxes were combined to form a

    harmonized sales tax at a standard rate of 15% for all goods and services. Excise taxes are

    also charged on automobiles, automobile air-conditioners, and some petroleum products.

    Under the Special Import Measures Act, the Government imposes countervailing duties onimported goods that cause injury to Canadian industry through subsidies in the country of

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    origin and anti-dumping duties on goods at prices that are less than their selling price in the

    country of origin.

    Recently Canada also the Aerospace industry imposes anti-dumping duties on several imports

    from the Chinese mainland including, carbon steel fasteners, laminated flooring, wood slats,

    hot rolled carbon steel and high-strength low alloy steel plate, hot rolled carbon and alloy

    steel sheet and strip etc.

    The Canada Revenue Agency can assist traders to determine the proper tariff classification,

    value for duty, origin, and the duty and tax rates that apply, and will provide written rulings

    on request.

    3.7.6 Documentary Requirements

    A complete documentary package should be presented to the Customs when the imported

    goods arrive at the country's border. The package includes:

    1. Cargo Control Document prepared by the carrier based on the shipper's information;

    2. Commercial Invoice indicating the buyer, seller, country of origin, price and detailed

    description of the goods with quantity and unit price;

    3. Import permits, health certificates and examinations as required by other Federal

    government departments: e.g. the Canadian Food Inspection Agency examines and

    gives permits for some meat products, and all restricted or controlled drugs require an

    import permit from Health Canada; the Department of Foreign Affairs and

    International Trade requires import permits for textiles and clothing;

    4. Certificates of Origin for claiming lower customs duty rates for goods from USA and

    Mexico (under North American Free Trade Agreement), Israel (under Canada-Israel

    Free Trade Agreement) or Chile (under Canada-Chile Free Trade Agreement) or

    Form A Certificate of Origin applies to goods covered by the Generalized System of

    Preferences;

    5. Bill of Lading to satisfy the direct shipment condition of preferential tariff treatment -

    goods must be shipped on a through bill of lading from the country of origin to a

    consignee in Canada;

    6. Other documents include Insurance Certificate, Packing List, Pre-shipment

    Inspection and pro-forma Invoice as requested.

    3.7.7 Consumer Protection

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    The Federal Hazardous Products Act prohibits certain items as being too dangerous to permit

    their usage. These goods cannot be imported, sold, or advertised in Canada. The manner of

    selling, advertising, labeling and packaging of a wide range of products likely to be in danger

    to the health or safety of the public, including any products or substance that is poisonous,

    toxic, flammable, explosive or corrosive is also regulated. These items can be imported, sold

    or advertised only as stated under regulations.

    3.8 International HRM Policies

    With the advent of globalization, organizations - big or small have ceased to be local, they

    have become global. This has increased the workforce diversity and cultural sensitivities have

    emerged like never before. All this led to the development of Global Human Resource

    Management.

    Even those organizations who consider themselves immune to transactions across

    geographical boundaries are connected to the wider network globally. They are in one way or

    the other dependent upon organizations that may even not have heard about. There is

    interdependence between organizations in various areas and functions.

    The preliminary function of global Human Resource Management is that the organization

    carries a local appeal in the host country despite maintaining an international feel. To

    exemplify, any multinational / international company would not like to be called as local,

    however the same wants a domestic touch in the host country and there lies the challenge.

    Enumerate the objectives of global HRM as follows:

    1. Create a local appeal without compromising upon the global identity.

    2. Generating awareness of cross cultural sensitivities among managers globally and

    hiring of staff across geographic boundaries.

    3. Training upon cultures and sensitivities of the host country.

    The strategic role of Human resources Management in such a scenario is to ensure that HRM

    policies are in tandem with and in support of the firms strategy, structure and controls.

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    Specifically, when we talk of structures and controls the following become worth mentioning

    in the context of Global HRM.

    1. Decision Making: There is a certain degree of centralization of operating decision

    making. Compare this to the International strategy, the core competencies are

    centralized and the rest are decentralized.

    2. Co-ordination: A high degree of coordination is required in wake of the cross

    cultural sensitivities. There is in addition also a high need for cultural control.

    3. Integrating Mechanisms: Many integrating mechanisms operate simultaneously.

    Global HRM Policy:

    Here also the role is no different hiring individuals with requisite skills to do a particular job.

    The challenge here is developing tools to promote a corporate culture that is almost the same

    everywhere except that the local sensitivities are taken care of.

    Also, the deciding upon the top management or key positions gets very tricky. Whether to

    choose a local from the host country for a key position or deploy one from the headquarters

    assumes importance; and finally whether or not to have a uniform hiring policy globallyremains a big challenge.

    Nevertheless an organization can choose to hire according to any of the staffing policies

    mentioned below:

    1. Ethnocentric: Here the Key management positions are filled by the parent country

    individuals.

    2. Polycentric: In polycentric staffing policy the host country nationals manage

    subsidiaries whereas the headquarter positions are held by the parent company

    nationals.

    3. Geocentric: In this staffing policy the best and the most competent individuals hold

    key positions irrespective of the nationalities. Geocentric staffing policy it seems is

    the best when it comes to Global HRM. The human resources are deployed

    productively and it also helps build a strong cultural and informal management

    network. The flip side is that human resources become a bit expensive when hired on

    a geocentric basis. Besides the national immigration policies may limit

    implementation.

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    Global HRM therefore is a very challenging front in HRM. If one is able to strike the right

    chord in designing structures and controls, the job is half done. Subsidiaries are held together

    by global HRM, different subsidiaries can function operate coherently only when it is enabled

    by efficient structures and controls.

    4. Conclusion

    This report provides an overview of the current environment of the global aerospace

    and defense industry, as well as provides a profile of the Canadian aerospace and defense

    industry and the future trends predicted by Canadian aerospace and defense companies. The

    aerospace and defense industry is very capital intensive, and requires substantial research and

    development (R&D) activities. In 2009 aerospace and defense companies invested an estimated

    total of C$1.9 billion. The R&D component is the largest type of investment, constituting 72.7% of

    total investment, with the remaining 27.3% being spent on property, plant, and equipment (PPE).

    The Government of Canada has various programs designed to fund aerospace and defense R&D

    activities, providing funding for an estimated 33.8% of the total aerospace and defense R&D spend in

    Canada in 2009. The majority of survey respondents indicate that this level of governmental funding

    is not sufficient when compared to the funding provided to aerospace and defense companies from

    foreign governments. This finding is especially pronounced among survey respondents based in

    Quebec and B.C., and less so from survey respondents based in Ontario and Manitoba. The role of

    government in the aerospace and defense industry is widely recognized as being of strategic

    importance. A 2009 study by aerospace and defense consultant, Aero Strategy LLC, suggests that

    another developing trend globally, and one with implications for Canada, is the growing collaboration

    between aerospace and defense companies and foreign governments to create high value aerospace

    and defense clusters within their respective countries.142 This means that global competition faced by

    the Canadian aerospace and defense industry will continue to increase due to foreign competitors

    collaboration with their own domestic governments.

    In addition, survey respondents also indicate that they expect factors such as the generaleconomic recovery, the health of airlines, the price of fuel and technological innovations, and

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    the level of military activity worldwide, to drive demand for Canadian aerospace and defense

    products and services over the next three years.

    Similarly, survey respondents note that factors such as access to low cost global supply

    chains, access to qualified labor and capital, increased foreign competition and government

    funding will drive the supply of Canadian aerospace and defense products and services over

    the next three years.

    5. Recommendation

    The study discussed about the Canada and its Aerospace Industry based on the information

    from different sources. From the information and statistics we have found that Canada has a

    large impact on world export import industry.

    The recommendation for the Manufacturing Industries of Canada, in concert with other

    departments of the Canadian Government, formulate and implement a firm and clear

    regulatory and policy framework to ensure the continuity and sustainability of this national

    resource, and to increase its impact on Canada's economic, social and strategic well-being.

    The products which are harmful in Aerospace industry, those goods cannot be imported, sold,

    or advertising in for in Canada, including any products or substance that is poisonous, toxic,

    flammable, explosive or corrosive is also regulated by the Govt. These items can be

    imported, sold or advertised only as stated under regulations.

    The Canadian Industry should increase its efforts to promote the importance of Canadas

    Aerospace policy and programs to Canadians, and suggests how this might be done.

    The Aerospace Industry polices Canadian Govt. should take to promote

    In the freedom of fair and open trade between sovereign nations, In the freedom and open exchange of thoughts and cultural ideas They should increase their efficiency level. The movement of the factors of Industry should be flexible. They should increase their productivity level both for civil and military sector.

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    They should increase their supplier channel in other nations so that their products canbe available.

    In the freedom of development of scientific knowledge, technical know-how and

    intellectual property. In the freedom of development and exchange of information on issues of global

    concern, and

    In the freedom to democratically elect governments to uphold our Canadian values

    6. Bibliography/ References

    We collected our dates from different types of book on journals, news papers, website of

    Aerospace and defense and also from magazines.

    The websites we searched data from are:

    www.wikipedia.org

    www.yahoosearch.com

    www.googlesearch.com

    http://en.wikipedia.org/wiki/Canada

    http://www.ic.gc.ca/eic/site/ad-ad.nsf/eng/home

    http://www.manta.com/world/North+America/Canada/aerospace and defense--G0/

    http://www.thecanadianencyclopedia.com/index.cfm?

    PgNm=TCE&Params=a1ARTA0000051

    http://www.aiac.ca/resources-and-publications/

    http://www.aiac.ca/about/

    http://www.aiac.ca/resources-and-publications/fmp/

    http://www.referenceforbusiness.com/management/Log-Mar/Macroenvironmental-

    Forces.html#ixzz1eeI2FuWZ

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