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
Tuesday, June 15, 2010
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