Paper Topic:

International business

INTERNATIONAL BUSINESS 2006

It has become increasingly evident that the international marketplace has a large role to play in shaping of Canada 's domestic economy (Reid 1992 ,

.87 . Between 1987 and 1991 , foreign entrepreneurs had brought 13-billion into Canada (Milner , 1991 , p1

International business in Canada faces its own unique challenges . These include increasing brain drain (especially to the US , limited firm specific advantages , low share in world trade and low per dollar return

In to become a force in the new global economy , Canada will need to take the following

steps to ensure long-term economic success

Revised leadership thinking that promotes the accelerated development and extension of successful business models (Hsieh Coyles , 2000 br

.34 . While Canada is one of the G7 countries , its global presence does not reflect this position of prestige . In 1999 , out of the Global 150 (the largest market value companies in the world , Canada with a GDP of US 599b could lay claim to only 2 of these companies (Nortel and BCE In contrast , the Netherlands a GDP of US 378b , had 6 of its companies in the Global 150 and Switzerland (GDP US 262 ) had 5 . A 2004 Globe and Mail article reports that Sweden , Finland , and the Netherlands (three European countries with a combined population slightly smaller than Canada 's ) have nine corporations in Fortune 's list of the biggest 250 firms in the world while Canada has one (Stanford , 2004 . We should be concerned about these numbers for the following reasons

Global companies have the ability to create a disproportionate share of wealth . In illustration , from 1994 to 1999 world capitalization went from 15 trillion to 33 trillion . The Global 150 got a bigger piece of the tide and grew their share of from 27 to 34 percent

Global leaders invest more in R D and leadership stock in their home countries . For example , Nokia has 48 percent of its employees in Finland (its home country ) even though less than 3 .5 percent of its sales come from there . Nortel follows this business model by conducting almost 50 percent of its R D in Canada even though less than 10 percent of its sales are Canadian generated

They are able to create mutually beneficial relationships with smaller ventures . These relationships help in attracting and retaining talent ideas and capital . Intel is a good example of this practice . It has invested 2 .5 billion in about 250 ventures including eToys , Inktomi Geocities , iVillage and Micron Technology

Recognition of talent is critical and must be promoted by company HR and government alike the same way Bill Gates and Michael Jordan are in the US . These individuals are in the top 10 percent of people in US organizations that have made recognizable contribution to value creation . Canadian businesses and government must seek out people who fit this pro and encourage this top talent to stay in the system The May 2000 article written by the Managing Director and Senior Engagement Manager of...

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