Chapter 10 : Industrial Organization in Canada

Foreign ownership restrictions to change


Summary:
This article talks about changes in foreign ownerships in Canada for the telecommunications industry. Telecommunications industries have a one month period to lobby because Ottawa has opened consultations on how far it should go to relax foreign ownership restrictions. The industry Minister Tony Clement stated on monday that the federal government will be opened to new ownership rules between now and early July. Regardless of size or market dominance, the rules will be applied to all. Industry leaders plan to relax regulations so it wouldn't be as strict as it is now. Industry Minister Tony Clement might free up restrictions on smaller companies such as Wing Mobile and Mobilicity to give them an advantage in the market. Rules in the telecommunications industries forbid foreign firms from owning twenty percent or more, regardless of size, or thirty three percent of a parent holding company. Canada is stated to be one of the most restrictive investment environments among industrialized countries.

Connection:
The connection to this article and chapter 10 is foreign ownership. Foreign ownership is when individuals who are not citizens of the country, have complete or majority of the ownership or control of a business or resource in a country. In the article, it refers to the Telecommunications Industry. Foreign ownership provides one-tenth of Canada's jobs and they tend to be alot more orientated.

Reflection:
I think that the regulations for foreign ownership, could be more strict because these telecommunications companies can make billions of dollars just with a simple alteration of the regulations. This would make it beneficial for smaller companies because it would give them a greater advantage to build on their company, and with their cheaper rates for providing their services, many people will be planning to switch to these companies

Source:
http://www.vancouversun.com/Foreign+ownership+restrictions+change/3125970/story.html

Chapter 8 : Stability Policy

Inflation Cools Slightly in March

Summary

This article talks about inflation and how it effects gas prices. Consumer prices had an annual inflation of 1.4% over a 1 year interval ending in March 2010. Gas pump prices were 17.2% higher in March than a year before. Crude oil prices have risen at least one third since 2009. The average price for a barrel of oil costs $69.85 USD compared to $53.48 USD from the previous year. Overall, for energy prices, it rose by 5.8% compared to the previous year in March. Canadians also paid more for foods, cars, household communications while mortgage interest, natural gas, clothing and footwear all declined in prices. Overall, Canada's economy has been growing at a rapid pace which forced the Bank of Canada to increase interest rates to control inflation.

Connection:

The connection to this article and chapter 8 is inflation. The Bank of Canada controls inflation by increasing interest rates. This is an example of the monetary policy because the Bank of Canada is using interest rates to stabilize the economy from rapid growth. This decision from the Bank of Canada shows that inflation in Canada is becoming an issue to the economy and needs to be controlled by increasing interest rates. This means that an increase in interest would result in an increase in price. With this increase in prices, supply would increase due to a drop in demand from the increased price for goods and services. This would result in inflation decreasing.

Reflection:

As we can see from this article, Canada's economy is doing fine due to the fact that our inflation needs to be controlled. We are most likely out of the recession because of the way people are spending again. During the recession, people didn't want to spend much money on goods and services because of unemployment. It was hard to find a job during the recsession and now, people are spending money to the point where inflation in Canada needs to be controlled by the increase of interest rates from the Bank of Canada. I feel that this is a good idea of how the Bank of Canada is using the monetary policy to control the inflation. But there needs to be a balance for the interest rates. If the interest rates stay too high, it will drag consumers away from goods, but if it stays too low, it would increase inflation.

Source:
http://www.cbc.ca/money/story/2010/04/23/inflation-rate.html

Chapter 5 : Economic Indicators

B.C.'s minimum-wage workers are falling further behind

Summary:

This article talks about how British Columbia is the only province in Canada with a frozen minimum wage. Workers in Nova Scotia recieved an increase for minimum wages 24 hours after Ontario recieved an increase on their minimum wage. Currently, Ontario's minimum wage is the nation's leading with $10.25. British Columbia is currently at the lowest with $8 for minimum wage. As British Columbia's minimum wage remains frozen, the average wage of workers has risen to 21% before inflation of about 17%. The same inflation is limiting British Columbian's spending power. The Government and many employers argued about raising minimum wages. Employers state that raising minimum wages would hurt the ones that should be helped because this would reduce people being hired. It was expected that youth unemployment would have decreased in British Columbia relative to those that have increased. British Columbia's youth unemployemnt rate fell before the recession, but risen back when the Liberals took office. The one thing that seems to be floating around is that minimum wage will increase not unless British Columbia abandons any government that mandated floor for employers. The longer the Goverment keeps British Columbia's minimum wage frozen, the harder life gets for those who make that much.

Connections:
The connection to this article and chapter 5 is inflation and unemployment. There is currently a dispute whether British Columbia should receive an increase in minimum wage or not. Due to the current recession and inflation, this would impact unemployment rates greatly because if there were to be a raise in minimum wages, it would cost the employer more money to hire an employee so hiring people would decrease. Some employwers may end up laying off people because they can't afford to pay their employees. if this happens, poverty in British Columbia would increase.

Reflection:
In my opinion on this article, I think that the Government should take action and raise the minimum wage in British Columbia, by a reasonable amount that employers can handle. This would help the economy better because this would give workers a little more money to spend, making their lives easier. Youth unemployment rates would most likely stay the same because there is only a little change in the minimum wage, which would impact employers slightly so they don't lay off employees.

Source:
http://www.vancouversun.com/business/minimum+wage+workers+falling+further+behind/2752317/story.html

Chapter 7 : Money and the Canadian Banking System

Interest rate hike unlikely until July

Summary:

This article talks about the bank's interest rates and times it is likely to increase. Canada's primary securities dealers expect the Bank of Canada to maintain its key interest rate near zero until July at its earliest. One of the twelve Canadian primary dealers that participated in a Reuters poll predicted that there will be a 25 basis point increase in April, while two other dealers predicted that there will be a 25 basis point increase in June. Nine of the twelve dealers predicted that the increase won't start until July or later on that year. Overall, all dealers predicted that there will be an increase by the end of this year. The Bank of Canada has promised to keep interest rates unchanged until the end of June at least. This is as long as inflation remains. Increased gasoline prices pushed the annual inflation rate towards the central bank's two percent target in January. The bank's key policy rate is currently at 0.25 per cent, and wil stand at 0.75 per cent to 1.25 per cent by the end of the year.

Connections:
The connection between this article and the textbook is bank rates. Canada's primary securities dealers are expecting the Bank of Canada to keep interest rates on money borrowed, low. This would help businesses expand without worrying about going in debt due to the recession Canada's economy is experiencing. Currently the interest rates are low, so many people are able to borrow money, but as polls show, primary dealers are beginning to predict that there will be a rise in interest rates within a few months. This would reduce the amount of money borrowed from the Bank of Canada because not many people can afford to borrow money with high interest rates.

Reflection:
In my opinion on this article, I believe that the Bank of Canada should keep the interest rates low, but I also think there should be times the Bank of Canada should raise interest rates. Although an increase in interest rates would decrease the number of people borrowing money, the Bank of Canada still has to make money to help the economy. Canada can't expect the Bank of Canada to always leave the interest rate near 0 all the time because this wouldn't help improve the economy efficiently. Instead, it would slowly help the economy. I think that the Bank of Canada should find ways to juggle around the interest rates so that it can benefit the people borrowing money, the Bank of Canada itself, and the economy.

Source:
http://www.vancouversun.com/business/Interest+rate+hike+unlikely+until+July/2615348/story.html

Chapter 3 : The Role of Government in a Market Economy & Chapter 4 : Government in Canada

B.C to give HST rebates

Summary:
This article talks about the British Columbia Government (Gordon Campbell) giving schools and hospitals a break from the newly formed "harmonized sales tax", during July 1st. This means that the government will be providing a rebate on 7% of the provincials sales tax portion of the harmonized sales tax. This means that institutions won't be paying anymore taxes as they are, once the harmonized sales tax comes into effect, according to the British Columbia Finance Minister Colin Hansen. This rebate will only apply to qualified schools, universities, public colleges and hospital authorities. The qualified schools will receive a rebate of 87%, universities and public colleges with a rebate of 75%, and hospital and health authorities with a rebate of 57%. This rebate will be provided by Revenue Canada.

Connections:
The connection between this article and chapter 3 in the textbook is government involvement. The British Columbia Government realized that giving schools, universities, public colleges and hospital authorities would just make it harder for them because they are taking money away from services that are government provided and the fact that these services needs more money to provide updated things. This would also benefit the British Columbia Government because people using these services, are trying to gain knowledge to work in the future, and these jobs can be government jobs.

Reflection:
In my opinion, this is a good idea for qualified schools, universities, public colleges and hospital authorities because if they had to pay more taxes, they only way they would be able to cope with this situation is by charging the public using these services, more. This would be easier on the people using these services and the people providing the services. In another look at this situation, it could be a hassle depending on how Revenue Canada is providing the rebates. Overall, I believe this will be a good thing towards these services.

Source:
http://www.cbc.ca/canada/british-columbia/story/2010/01/14/bc-hst-rebate-institutions-hansen.html

Chapter Two : The Operation Of A Market

World Gas Conference In Argentina To Discuss Supply-Demand Balance
Ministers, industry leaders and experts from 81 countries are meeting in Buenos Aires for the 24th World Gas conference with one main topic in the adgenda: the balance between natural gas supply and demand

Summary:

An official Conference at Latinamerica was held on October 5, 2009 with attendees including ministers, industry leaders, experts from 81 countries and other representatives. They discussed about how it would effect the environment, long term development strategies and regional integration. The International Gas Union president stated that due to the decrease in demand for gas in August, it slowed down or canceled projects within the gas industry. He then announced that they will analyze new global projects towards the gas industry. The European Union, Russia, Brazil, Japan and Algeria officials announced that they will address long term supply of natural gas, while the United Kingdom, the United States of America and Trinidad Tobaga have also been invited to help supply natural gas. They have realized that demand for natural gas has increased rapidly in newly emerging countries. Ministers have concluded that they need to improve efficiency and energy in gas consuming and producing countries.

Connections:

The connection between this article and chapter two in the text book is the factor of supply and demand. As the demand of gas decreases dramatically, the supply increases due to the lack of buyers. This affected the price by decreasing it, due to the increase of supply and decrease in buyers. The decrease in price helps motivate buyers to buy more gas because there getting more gas at the same price.

Reflection:

In my opinion, the price for gas will always be fluctuating up and down. This is because when the price of gas goes up, not many people will want to buy it. That would make the supply increase, therefore the price would drop due to the increase in supply. Then there would be buyers again within the gas industry. Many of the newly emerging countries are in need of large amounts of gasoline, while other countries which already have gasoline, consume a lot. This breaks the balance because there is only a limited supply of gas, so the ministers, officials and experts have to think of another alternative in doing the same job without using gas.

Source:

http://en.mercopress.com/2009/10/05/world-gas-conference-in-argentina-to-discuss-supply-demand-balance

Chapter One : Introductory Concepts

It's not just clean air we need, Minister Ambrose. Canadian communities are running out of fresh water.

Summary:
This article talks about how people in Canada are constantly using Canada's supply of fresh water, and things that they can do to conserve water usage in the long run. The scarcity of fresh water in Canada is continuously increasing and being ignored by the public. Communities in different regions of Canada are beginning to think of ways they can get more freshwater for its cities needs. There was an international conference that was held to identify and discuss the issues and ways that they can use to increase the supply of fresh water and avoiding bigger tax bills at the same time. They talked about what people can do to conserve water in their home, including ways such renewing the water that was already used by people, collecting rain water, and more efficient appliances to help conserve the fresh water within Canada. These are just some ways that officials can use to elaborate on this scarcity problem. The cost of doing this operation will depend on the decision of what the people want, whether to reuse water or collect rain water, communities will have to see that they are limited to the amount of fresh water they have.

Connections:
The connection between this article and chapter one in the textbook is scarcity. Water is scarce because it is a limited resource, once its all gone, there is no way of getting it back. People have to find ways of conserving it water instead of wasting it. On average, a person uses about 7100 liters of water a day, which is quite high considering people in third world countries have a very low chance of getting fresh water. These people may suffer from fatal diseases from their contaminated drinking water. Canadians should really think about conserving water or they will end up with their heads stuck in the grounds, thinking of ways to get water due to the lack of fresh water around us.

Reflection:
In my opinion, I think that the Federal Environment Minister should make note to the public that water scarcity is rising within Canada and if we don't make changes now, they may be no more fresh water supply for future uses. This factor may contribute to water receiving a price tag. If we take actions now in conserving water and finding ways we could reuse the water we have disposed, we can prevent a major loss in a natural resource that we humans need to survive.

Source:
http://www.cbc.ca/blueprintalberta/experts/oliver-brandes.html