Free trade: Canada, the United States, and Mexico

Article Abstract:

Economic Council of Canada senior economist Sunder Magun believes that the proposed free-trade treaty that would encompass the US, Canada and Mexico shall lead to significant long-term gains for Canadian business. Magun warns, however, that there inevitably shall be short-term disadvantages as Canadian business experiences a transitional adjustment period at the onset of trilateral free trade. These negative developments would most likely include an initial diversion of US investment to Mexico and greater competition in the US market from low-cost Mexican-manufactured goods. Eventually, Magun stresses, the economic growth that trilateral free trade would trigger in the burgeoning Mexican market would bring substantial benefits to Canadian business since it would have access to a fast growing market that is expected to increase to 100 million by the year 2000.

Mexico, North America, Mexican foreign relations, Commercial treaties, Trade agreements

---

The Pacific Rim countries: a great opportunity for Canada

Article Abstract:

The Pacific Rim countries (PRCs) are the fastest growing economies in the world and represent a great trading opportunity for Canada. Canada primarily exports resources to the PRCs and imports high-quality, value-added technology-based goods. Canada has experienced a deteriorating balance of trade with the PRCs, particularly Japan and China, but its exports to the newly industrialized countries of Hong Kong, Singapore, South Korea, and Taiwan have increased, though they are offset by a greater increase in imports. Canadian industries face serious competition for the markets of the PRCs from companies from the US, the EC, Australia and New Zealand, as well as from intra-PRC trading partners. In order to successfully compete, Canadian industry must broaden its export base by improving productivity and cost performance.

Taiwan, China, South Korea, Japan, Corporations, Hong Kong, Chinese foreign relations, Japanese foreign relations, Chinese (Taiwan) foreign relations, Hong Kong foreign relations, South Korean foreign relations, Commerce, Pacific Rim, Korea, South, Corporations, Canadian

---

How would Air Canada and CN fare on the stock market?

Article Abstract:

In a recent Council paper, D.H. Drury and C.W. Sealey, McGill University economists, attempt to measure the cost to Canadian National Railways and Air Canada if their shares were publicly traded. The Crown companies are compared to other companies in their industries and to public companies with similar income trends. Results indicate that CN Rail paralleled the industry in growth, though wider swings in growth and net income suggested higher operating risk. Average cost of capital, if the company had been publicly traded, would have been 10.5 percent. For Air Canada, cost of capital would have been 10.9 percent. Doubt is cast on privatization as a cheap way of raising capital unless restructuring of the companies is also considered.

Railroads, line-haul operating, Railroads, Finance, Airlines, Government business enterprises, Public enterprises, Canadian National Railway Co., Air Canada

Similar abstracts:

• Abstracts: From apartheid to welfare state. The difference twelve months makes: welfare reform. The Golden State turns brown
• Abstracts: Given the bird: American forest products. The accidental tourists: bird migrations. Free as a bird
• Abstracts: "The gifts that healed our hearts". The impossible boss: how to deal with one and keep your sanity
• Abstracts: Encryption: DES Can Keep Your Data Safe. Savvy: The Program that Thinks for Itself. If Your Stuck for Words, This Program Will Keep You Guessing
• Abstracts: Strategic gropes to the desktop revolution. Sewing machine factory in China grapples with growth

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.