Transcript Canada: The Northern Trading Neighbor

Canada: The Northern
Trading Neighbor
IB 8680/CIS 8220
Wednesday April 26, 2006
Melloney Douce
Canada
- Total
- Water (%)
9,984,670 km²
3,855,103 sq mi
8.92 (891,163 km²)
Overview
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Economic Overview
Political Environment
Education and Health System
Language and Culture
IT Diffusion and Telecommunications Infrastructure
ICT Industry
E-business in Canada
Future Prospects
Conclusion
Questions
Economic Overview
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32,422,919 people live in Canada (4th Q 2005)
Unemployment rate 6.3 % (March 2006)
Consumer price index 129.3 (March 2006)
Gross domestic product $1,090 billion (January
2006)
Gross domestic product per capita $32,800 (2006
estimate)
National net worth per capita $137,300 (4th Q
2005)
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Sources: Stats Canada and Wikipedia
Political Environment
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Paul Harris is the Prime Minister
Legislative branch:
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bicameral Parliament
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Senate (members appointed by the governor general
with the advice of the prime minister)
House of Commons (members elected by direct, popular
vote to serve for up to five-year terms)
10 provinces and 3 territories
Education and Health System
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Publicly funded education system
Literacy: total population: 97% (1986 est.)
Country has a large group of skilled workers
University costs are subsidized by the
government
Government also subsidizes the health care
system
Language and Culture
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Official languages are English and French
There are many different cultural influences in
Canada
Large immigrant population
Hofstede MAS 52 ranks 28th
Hofstede UAI 48 ranks 12-13th
Hofstede PDI 39 ranks 15th
Hofstede IND 80 ranks 46-47th
IT Diffusion and Telecommunications
Infrastructure
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Ranks 3rd for Multimedia Access
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Telephone density 57.5
PC density 17.5
TV density 65
The 2005 Information Society Index
COUNTRY TOTAL
CANADA
966
COMPUTER
12291
TELECOM INTERNET
131
257
SOCIAL
349
ICT Industry
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Software Industry notes:
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$28.6 billion in total revenues
253,600 software workers
$728 million of annual R&D
44,000 firms nation wide
22 per cent revenue growth in 1999-2000
73 per cent of Canadian software revenues come
from foreign sources
ICT Industry
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32,000 ICT firms
545,000 employees
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9.2 percent growth between 1997 and 2003
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more than 40 % with university degrees
exceeded Canada’s 3.7 percent annual GDP
growth
$5 billion R&D spending in 2004
70 % of ICT products manufactured in Canada
are exported
E-business in Canada
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Internet country code: .ca
Internet hosts: 3,210,081 (2003)
Internet Service Providers (ISPs): 760 (2000
est.)
Business to Consumer sales over the Internet
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2003 Statistics Canada survey
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64% of Canadian households regularly used the internet
E-business in Canada
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Highest usage levels are in households with high
incomes, working members, homes with children
and people with higher levels of education
45 % of lower income households show internet
use
3.2 million Canadians actively engaged in ecommerce
Canadians spent $3 billion on the internet in 2003
& 2004
Source: Statistics Canada www.statscan.ca
E-business in Canada
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Business to Business Internet Sales
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In 2004 businesses recorded $19.8 billion in B to B
sales
75% of online sales are conducted between
businesses
Wholesalers sold $5.1 billion in goods using the
internet or extranets
Manufacturers sold $3.9 billion in goods using
intranets, extranets, EDI or internet sites
Source: Statistics Canada www.statcan.ca
Future Prospects
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The Future of IT in Canada
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Canada needs to continue to focus on providing
skilled IT personnel
Canada continues to promote the IT industry
Canada will need to continue to focus on education
if it wants to remain a key player in the IT market
Conclusion
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GDP continues to grow
Canada will remain a player in the IT market
Canada’s strong dollar will not deter foreign
investment
US firms can benefit from the skilled labor
force in Canada
Questions