Canada is the second leading nation in the globe in geographic size following Russia. Canada has an all-inclusive system of external and internal communications. This system is a combination private and public ownership. A complete transport network by water, air and land provides access for services and goods to all parts of the country (waters, Malcolm, 8).
The Legal / Political / Regulatory Environment are basically be described as the regulations and laws that an industry follow in order to ensure the business owners are not detained, or have their firms fined for nonconformity of some guideline.
Canada has conventionally had a free market economy superimposed with a considerable amount of enterprises that are controlled by the government. Parliamentary democracy is the fundamental form of government. The biggest monetary centre of Canada is Montreal, Vancouver and Toronto which have exceptional status as global finance centers with good tax status accessible for certain international finance and banking arrangements. Canada does not have any foreign exchange or currency controls. Securities regulations and laws are under provincial authority, even though national securities rules subsist to ease national allocation of securities. The system is synchronized by nine provincial securities commission and trade is made easy by the TSX Venture Exchange, Toronto Stock Exchange and Montreal Stock Exchange,
If a foreign financier needs to acquire a Canadian firm, he/she may issue its own securities or pay in cash in trade for the shares of Canada corporations. If the financier trades the firm through a takeover tender for the shares, or if he/she acquires it for a percentage of 5 or more of the shares of a firm that tenders its shares to the municipal, then he/she ought to file some information within a period of twelve months. Typically, the information that is enclosed in a takeover bid circular is filed with the stock exchange where the shares are listed by the relevant regional securities commissions. If appropriate, it is sent to the owners of the company to request their shares.
As a common law, foreign corporation are subjected to normal Canadian income tax. In addition to the normal business income tax, there is also a certain percentage of Branch Tax that is obligatory on estimated distributions of profits to the overseas head office. This rate of tax may be lowered by agreement (Wiarda, Howard J, 34). If a governing agreement limiting taxation of Canada’s authority is not available, a foreign venture operating a business in Canada will be taxed in Canada despite of whether or not it has a permanent establishment or a fixed place of business in Canada. Canada is also politically stable(Bennett, Judith, 19).
The Canada system of government is constitutional monarchy, democracy and a federation. Canada's democratic system, in comparison to Saudi Arabia Theocracy, gives confidence to small enterprises and protects them with powerful laws of property-rights. As a comparison, investigation results point out that Canada is "free"(Goody, Jack, 23). This describes the level of civil liberties and political rights of the individuals. Political rights refer to individuals’ capability to vote and run for municipal office as nominated officials. Civil authorization includes people's free will to develop institutions, views, and personal sovereignty separately from the state." Saudi Arabia is "not free". The people of this Saudi Arabia have a very low level of liberties and rights. For instance, in a theocratic state, an individual with a dissimilar religion from the dominant one may be mistreated or even murdered. The laws are not be based fairness or on logic. These restrictions make it difficult for investors to venture in businesses in Saudi Arabia (McGuire, Danielle, 13).
Reference
waters, Malcolm. Business in canada. London: Routledge, 2001. Print.
Wiarda, Howard J. Canada political and legal climate for foreign businesses. Boston: UPNE, 2007. Print.
Bennett, Judith. “political stability in canada”. University of Pennsylvania.12 Apr. 2007. Web. 19 Jan. 2009.
Goody, Jack. “Political Parties and the Party System in Canada.Cambridge University Press. 2 Sep. 1983. Web. 23 Aug.1990.
McGuire, Danielle. “saudi arabia political state”. Knopf. 6 Jun. 2010. Web. 13 Dec. 2010.
