International trade documentation and logistics

Country specific: Case Study

Canada

HIMANSHU BHARDWAJA1802014126

Section-A

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Table of Content

CANADA.........................................................................................................................................3Population.................................................................................................................................................3

Location..................................................................................................................................................4Currency of Canada...............................................................................................................................5

GDP.................................................................................................................................................................. 6Merchandise & Inflation Rate.................................................................................................................... 6

Cunha, 2015...............................................................................................................................................7The inflation rate in Canada.......................................................................................................................7

Balance of payments............................................................................................................................. 8Foreign Direct Investment.................................................................................................................9

tradingnomics, 2015...............................................................................................................................10Foreign Direct Investment in Canada.......................................................................................................10

Foreign institutional investor.....................................................................................................10Foreign trade policies.............................................................................................................11

Bibliography................................................................................................................................13Appendix......................................................................................................................................14

Table of Figures

Figure 1 3Figure 2 5Figure 3 6Figure 4 9Figure 5 10Figure 6 10Figure 7 11Figure 8 12

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CANADA

Is a country in North America which consists of ten provinces and three territories, located in the northern part of the continent moreover it extends from the Atlantic to the pacific and northward into the Artic ocean. Canada is the fourth largest country by land area and world’s second largest by total area moreover it is a developed country and one of the wealthiest in the world not only this but its ranks among the highest in international measurements of government transparency, civil liberties, quality of life, economic freedom and education.

Figure 1

Population

According to World Bank the population of this country is 35.16 million, it’s a new world country and has been predisposed to be a very open society with regards to immigration, which has been an important factor in its massive population growth and Canadians make up about 0.5 percent of the world’s total population.

Reason for population growth

According to www.statcan.gc.ca, the reason for Canada’s population growth that counts for almost 66.5 percent of the total increase for the year 2013-2014 is accounted to international migration.

3

Location

Stock exchange

The economic capital of Canada is Toronto; it has the ‘Toronto stock exchange’, which is abbreviated as ‘TSX’ and is one of the largest stock exchanges in the world. The chairman of this stock exchange is Wayne fox and it is owned by and operated by TMX group for the trading of senior equities. Toronto stock exchange was founded in the year 1861 on 25 th October.

Sea Ports

Figure 2

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Not a landlocked country

Is not a landlocked country as a landlocked country is that country which is entirely enclosed by land, the number of countries which come under the salutation of being a landlocked country are forty eight in the world. There are certain disadvantages of being a landlocked country, as it cuts a country off from important sea resources like fishing and sabotages direct access to seaborne trade, which can be a crucial factor in economic development of the country.

Example of a landlocked country is Uzbekistan in Asia surrounded by five countries viz. Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.

(wikipedia, 2015)

Currency of Canada

The capital of Canada is ‘Ottawa’, the city has evolved into a political and technological center of Canada moreover name of the city has been derived from Algonquin word Odawa that means ‘to trade’. Currency of Canada is Canadian dollar and the present exchange rate with respect to Indian rupee is high on charts, as one Canadian dollar is fifty rupees.

(Wiki.org, 2015)

Figure 3

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GDP

Gross domestic product that is abbreviated as GDP, in the year 2013 the GDP of Canada is 1.827 trillion USD and GDP per capita’ for the year 2013 was 51,958.38 USD

The GDP value of Canada represents 2.94 percent of the world economy moreover GDP is the measure of national income and output of a nations economy. It is equal to the total expenditures for all final goods and services produced within in a country in a stipulated period of time

The GDP of Canada expanded to 0.60 percent in the fourth quarter of the year 2014 and down from a revised 0.8 percent increase in the previous period and dragged down by the fall in business investments and exports.

Moreover there was fall in export of good and services of about 0.4 percent that to after increasing 2.2 percent in the previous quarter but export of goods were lower while those of services were higher but imports were increased by 0.4 percent.

(Taborda, 2015)

Merchandise & Inflation RateThe case study is based on Canada’s international trade hence it is important to know that which are the things that Canada exports and imports. The percentage share each export category represents in terms of overall exports from Canada is mentioned below.

Oil 27.2 percent of total exportVehicles 12.6 percent of total export

Machines, Engines, Pumps 6.9 percentGems, Precious metals, Coins 4.5 percent

Electronic equipment 2.9 percentPlastics 2.8 percentWood 2.7 percent

Aircraft, spacecraft 2.6 percentAluminum 1.9 percentCereals 1.8 percent

Table 1

From the above products sales of electronic equipment went down 6.8 percent and aluminum down 0.6 percent but cereals posted the highest gains at 57.3 percent followed by wood (up 49.4 percent) and oil (up 39.9 percent).

(Workman, Canadas top ten exports, 2015)

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Goods and services imported in Canada

Table 2

(Workman, Top ten imports to Canada, 2015)

Inflation Rate According to (Cunha, 2015);

The inflation rate in Canada was recorded at 1 percent in February of 2015. Inflation Rate in Canada averaged 3.20 percent from 1915 until 2015, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.

Table 3

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Fertilizers from Russia Wood from AustriaIron and steel from Spain Rubber from Russia

Copper from Russia Aircraft & Spacecraft from RussiaOrganic Chemicals from India Pharmaceuticals from India

Clothing from India Fruits and nuts from MexicoFish from India Plastics from Japan

Vegetables from Brazil Medical equipment’s from AustraliaStone and cement from Turkey Meat from Australia

Balance of payments

The balance of payments (BOP) of a country is the record of all economic transactions between the residents of a country and other people of the world in a particular period (over a quarter of a year or over a year), these transactions are made by individuals, firms and government bodies. The snapshot given below showcases the balance of payment made by Canada in different area of the economy.

Figure 4

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Foreign Direct Investment

According to (tradingnomics, 2015);

Foreign Direct Investment in Canada decreased to 30 CAD million in the fourth quarter of 2014 from 1896 CAD Million in the third quarter of 2014. Foreign Direct Investment in Canada averaged 404.22 CAD Million from 1981 until 2014, reaching an all time high of 7999 CAD Million in the first quarter of 2013 and a record low of year 2013 CAD Million in the first quarter of 2010. Foreign Direct Investment in Canada is reported by the Statistics Canada.

Figure 5

Figure 6

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Foreign institutional investor

Can be understood as the companies or investors, which is foreign to country ‘A’ is investing in the financial market of country A. This institutional investor incorporates hedge funds, insurance companies, pension funds and mutual funds or organizations which pool large sums of money and invest those sums in securities, properties and other investment assets.

(Investopedia, 2015)

Canada has wide network of connection with security exchange board of India as the country has funds advisor, trustees on behalf of such funds, pension funds all invested in Indian Market

Figure 7

The snapshot given as captioned figure 7 showcases the country wise distribution of Fii’s registered with Security exchange board of India.

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Foreign trade policies

Information gathered from (Canada.ca, 2014) showcases that Canada has control regulations over its import and export of products for example Agricultural, firearms, steel, technological equipment’s and clothing which are elaborated further in this case.

Exporting

Some of the recent updates in regulations and notices

Figure 8

Products that comes under control products

Military and strategic goods & technology Firearms Sugar and sugar containing products Peanut butter Logs United states origin goods and technologies

Importing

In accordance the Export and Import Permits Act, the Trade Controls and Technical Barriers Bureau is responsible for issuing permits and certificates for various products included on the Import Controls List (ICL). Products subject to import controls include Agricultural Products, Firearms, Textiles and Clothing and Steel. Although a product may not be subject to import controls, there may be a requirement for the issuance of an International Import Certificate.

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Bibliography

wikipedia. (2015, april 01). Landlocked countries. Retrieved april 01, 2015, from Wikipedia: http://en.wikipedia.org/wiki/Landlocked_country

Wiki.org. (2015, march 30). Capital of Canada. Retrieved april 03, 2015, from Wikipedia: http://en.wikipedia.org/wiki/Ottawa

Taborda, J. (2015, march 03). Canada gdp growth rate. Retrieved April 05, 2015, from http://www.tradingeconomics.com/canada/gdp-growth

Workman, D. (2015, February 19). Canadas top ten exports. Retrieved april 05, 2015, from World top exports: http://www.worldstopexports.com/canadas-top-exports/2502

Workman, D. (2015, march 04). Top ten imports to Canada. Retrieved april 05, 2015, from World richest Countries: http://www.worldsrichestcountries.com/top-canada-imports.html

Cunha, C. (2015, march 20). Canada inflation rate. Retrieved april 05, 2015, from Trading economics: http://www.tradingeconomics.com/canada/inflation-cpi

tradingnomics. (2015, march 06). Canadas foreign direct investment. Retrieved april 05, 2015, from Statistics Canada: http://www.tradingeconomics.com/canada/foreign-direct-investment

Investopedia. (2015, february 26). Foreign institutional investor. Retrieved april 05, 2015, from investopedia.com: http://www.investopedia.com/terms/f/fii.asp

Canada.ca. (2014, december 11). Foreign affairs, trade and development canada. Retrieved april 05, 2015, from international.gc.ca: http://www.international.gc.ca/controls-controles/index.aspx?lang=eng

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Appendix13

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