The Real Economy in the Long-Run: Apple Inc., Case
Apple Company is one of the leading computer and electronic products company globally. These products are vital in determining Canada’s future living standards. These products are instrumental for future growth despite Canada’s resilience to the global financial crisis (Wessels, 2006). There are procedure and policies by the Canadian government that will boost productivity which is a measure of efficiency in producing goods and services using economic resources; this will enable the Apple products to sell and this include;
Government taxation, corporate tax on the ICT products has changed for the better over the past years, becoming less burden on the ICT investing companies boosting their productivity growth. The country has the highest marginal corporate income tax rates among the OECD countries; however, rates have been reduced yearly from 2009 to affordable and competitive levels, the income tax rate being as low as 15%. It will provide Apple Company with the chance to put more funds in ICT investment; this incentive will impact positively on the products of the Apple Company (Graham, 2010). Canada has incentive program well recognized globally by the federal government in Experimental Development and Scientific Research tax credit. This program gives a 35% tax credit refundable to all Canadian companies for up to the first $3 million in qualified expenditures.
Foreign direct investment; these focuses on both restriction and liberalization that exists in regards to increasing ICT investment and adoption, allowing technology transfers which will stimulate investments in ICT and introduce globally competitive wages. Apple Company being of the Multinational companies located in Canada will have access to technology from their Canada headquarters which can finally transfer to markets that are domestic (Petras & Veltmeyer, 2007). It will allow Apple Company do business in Canada without payment of high tariffs leading to low taxes as opposed to direct export to Canada.
References
Wessels, W. (2006). Economics. Hauppauge, N.Y.: Barron's.
Graham, I. (2010). Information and Communication Technology (ICT). London: Evans.
Petras, J. & Veltmeyer, H. (2007). Multinationals on trial. Aldershot, Hants, England: Ashgate.
