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#Written by David Tam, 1999.           #       
#davidkftam@netscape.net Copyright 1999#  
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From tamda@ecf.toronto.edu Mon Jul 12 18:22:41 1999
Date: Mon, 25 Jan 1999 12:17:13 -0500 (EST)
From: David Kar Fai Tam <tamda@ecf.toronto.edu>
To: APS 424S <aps424@chem-eng.toronto.edu>
Subject: #7-01/26/99-"Lower imports boos November trade surplus"

The Globe and Mail, Friday, January 22, 1999. B6.

    This article talks about the net trade surplus Canada is 
experiencing (for the fiscal year of 1998). The total value of 
exports were greater than the total value of imports ($1.9-
billion). This *generally* means that a country is quite 
productive and is steadily creating wealth for Canadians. 
Businesses are doing well and are successfully finding world 
markets.

    However, this article further analyzes the source of the net 
surplus. The main reason turned out to be that imports were down. 
This was due mainly to a decrease in foreign equipment and 
machinery purchases. This brings about the concerning question of  
whether this decrease in equipment purchases is due to less 
economic and business expansion, or whether it is due to new 
domestic sources of machinery or equipment has been found. 

    The value of exports remained fairly flat compared to the 
previous years. This was due to lower oil prices, so exported 
Canadian oil was not worth a much as previously. Export of 
automobiles increased quite noticeably.

    I believe the ideal picture would be that exports increased 
substantially, while imports remained fairly steady, or even 
increase very slightly.

    Another cause of concern is that while exports to the US have 
increased due to their excellent economic situation, exports to 
other countries were down approximately 10 %.

    This may mean several things about Canadian corporations. 
First, they may mean that most businesses are concentrating most 
of their globalization efforts in the U.S., and relying solely on 
the U.S. as the only foreign market. Canadian corporations should 
also look at the European Union for upcoming opportunities. A 
notably example is the fact that Canadian corporations are 
ignoring the rapidly growing market in Poland. Poland is said to 
be the economic tiger of East Europe, with a very strong, growing 
economy. Other countries such as the U.S. have been able to find 
new markets in this country. 

    Canadian corporations need to realize that seeking foreign 
markets does mean just looking towards the U.S. There are also 
large markets in Europe and Asia.