AUGUST 1995 Edition
DUMPING
A study conducted by the U.S. International Trade
Commission has concluded that when the U.S government slaps anti-dumping duties
on products from trading partners it causes heavy losses in other sectors of
the U.S. economy. The anti-dumping duties bring about higher costs in the rest
of the economy because other companies which use that protected sectors'
products pay higher prices. The study found that these costs outweigh the
benefits. If the U.S. had scrapped its anti-dumping tariffs in 1991, the domestic
economy would have enjoyed a net gain of $1.59 billion in that year alone.
ARMS SALES
Canadian exports of military goods--including firearms,
vehicles, aircraft, parts and equipment--jumped 48 per cent in 1994 over 1993
and were worth half a billion dollars. The biggest single customer, apart from
the United States, was Saudi Arabia which bought $280 million worth of goods.
Shipments to the U.S. don't require special permits and are not included in
these figures. A quarter of all exports went to NATO countries. Exports
improved because of the shifting Canadian dollar and improved economies abroad.
TECHNOPHOBIA
According to Forbes, the first management conference was
called in 1882 by the German post office. The topic, and only chief executives
were invited, was how not to be afraid of the telephone. Nobody showed up.
Apparently the invitees were insulted believing that the idea that they should
use the telephone was unthinkable.
POETRY
Some of the world's largest companies are turning to
verse in their quest for success in the 21st century according to The Sunday
Times. David Whyte, a British poet, has been hired by such companies as Boeing,
AT&T and Arthur Anderson. Three days a month for a year, for instance, he
reads poems to top Boeing executives. Asked to name the manager most affected
by his verse, Whyte named one at AT&T. He grew so excited by Whyte's
message he realized his existence at AT&T was meaningless. So he left!
HEALTH
A study of 30,000 Americans aged 65 and over shows that,
in the past decade, they have suffered fewer illnesses. According to Duke
University research, good health care and habits seem to be bearing fruit. The
rate of illness fell by 11 per cent between 1982 and 1989--from 2.5 medical
conditions per person to 2.3. Eleven diseases showed a decline; they included
arthritis, circulatory disease and emphysema. There was no significant change
in rates of cancer, heart attacks or diabetes.
TRANSFER PRICING
The Canadian and U.S. governments are investigating more
multinational companies for their transfer pricing practices. A study
commissioned by Ernst & Young of 200 multinationals in Australia, France,
Germany, Britain, the Netherlands, the U.S and including 25 in Canada, found
that Ottawa and Washington are stepping up their enforcement power in a bid to
prevent erosion of tax revenues. Transfer pricing is the price charged within a
multinational corporation for goods and services shipped between the parent company
and its affiliates. Of the Canadian respondents, nearly 90 per cent have been
questioned about their practices by Revenue Canada; 82 per cent see transfer
pricing as a major international tax issue and 48 per cent see the issue as the
number one tax issue facing their company.
ADVERTISING
In Romania, which has yet to develop a consumer society,
the advertising business is unconventional. For instance, advertising companies
sometimes remove rivals' billboards or possess their own media outlets. In
1993, a local agency called Rom-KU arranged a deal under which R.J. Reynolds
agreed to supply the Bucharest mayor's office with light bulbs for the city's
traffic lights for a year. In return, the yellow lights carried the logo of the
firm's Camel cigarette brand. The deal has expired but some Camel lights
remain.
FORTUNE 500
Four Japanese companies have knocked General Motors from
top spot in Fortune magazine's ranking of companies around the world. The
biggest is now Mitsubishi Corp posting $176 billion (US) in annual sales, more
than AT & T, du Pont, City Corp and Procter & Gamble combined. Second
was Mitsui & Co followed by the Itochu and Sumitomo Corporations. All of
them are trading companies built by exporting the goods of industrial postwar
Japan. GM, which topped last year's list was fifth despite a 17 per cent
increase in revenue. However, Japan fell behind the U.S., ranking second as the
home base for the world's biggest companies, with 149 of the 500. The U.S had
151 companies on the list.
BOOKS
According to Statistics Canada, the big growth for
Canadian book publishers in the past five years has been outside the country.
Book exports tripled to $115.6 million in 1993-94 from $38.6 million in
1989-90. In comparison, the domestic market was sluggish, with total 1993-94
book sales of $1.29 billion, up only slightly from $1.2 billion four years
before. Respondents to Statscan's annual survey attributed the export boom to
two factors: publishers working harder abroad to compensate for flat sales at
home, and government trade initiatives beginning to pay off. Canadian libraries
are buying far fewer books while bookstore chains are buying far more.
CONTENTMENT
Canadians are among the most satisfied people in the
world, a Gallop Poll of 18 countries has found. They are more satisfied about
personal health, finances, housing, education and material possessions than
those surveyed in the U.S., Britain, Germany, France, China, Chile and Mexico.
The least satisfied were in Mexico and Hungary. Canadians like the way their
democracy works (62 per cent) and are content with their personal lives (86 per
cent). However, 46 per cent believe their world is worse than their parents'
and believe their children's world will be even worse.
WINE
Canadian wines were selected as among the best in the
world at the third Vinexpo Bordeaux wine fair, the wine industry's largest
trade exhibition, winning 17 of the top awards. Canadian wineries were awarded
six gold medals, seven silver and four bronze, more than twice as many awards
as Canada won last year. More than 40 countries attended the fair with 2,000
different exhibitors, attracting 50,000 wine professionals. Some 4,000
different wines were judged at the fair. Twenty wine producers from Canada were
represented at the show with most from Ontario and four from B.C.
PRESCRIPTIONS
A busload of seniors from Minnesota recently travelled to
Winnipeg, Manitoba, lining up to see a doctor at the Lincoln Walk-In Medical
Centre and to buy prescription drugs they say are much cheaper in Canada than
in the United States. The seniors' U.S. drug prescriptions were co-signed by
the Manitoba doctor and taken to a local pharmacy to be filled, A member of the
Minnesota Seniors Federation stated that they were taking matters into their
own hands and visiting Canada to find drug prices that are reasonable. The
seniors' association, pushing for stricter U.S. control on drug prices, claims
that some brand-name medicines are six times cheaper in Canada, Manitoba
pharmacists say they have noticed a trickle of American drug shoppers taking
advantage of Canada's relatively cheaper dollar and generally lower drug
prices.
CANADA
The Public Affairs Division and International Business
Development Section of the Canadian Embassy in Washington, D.C. have launched
an Internet World Wide Web site. Located at http://www.nstn.ca/wshdc,
the site makes available information on Canada and the Embassy. Combining English and French text with photos
and colour graphics, the site offers information on Canada-U.S. trade, as well
as the many services offered by the Embassy. These include trade and investment
promotion, international financial institution support, tourism development,
and cultural and academic affairs. Interactivity with the public is possible--users
may contact Embassy officials directly by electronic mail. The site can be
explored using any of the common World Wide Web browser programs, including Netscape
Navigator, Mosaic, and the text-based system Lynx.=20.
UNICEF
Canada is a major donor to United Nations organizations.
As a supplier to these organizations however, Canada is ranked by the UN as one
of the "Underutilized Major Donor Countries." UNICEF is now the
world's largest humanitarian assistance program and since the UN relocated its
procurement program to Copenhagen, Denmark, the Canadian Embassy has been
working with Ottawa to increase Canadian participation in UNICEF's global
project requirements. Emergency relief represents 25 per cent of UNICEF's total
purchasing. To bid on emergency relief tenders, it is essential that
procurement officers are aware of the product's suitability and the reliability
of the supplier. Vaccines and drugs represent 35 per cent of total procurement:
54 per cent when combined with vehicles, and water and sanitation equipment.
More information is available from DFAIT in Ottawa by fax at (613) 943-1100.
ETHNIC FOODS
Ethnic foods are increasingly popular in Canada and the
growth is being driven by the country's changing ethnic mix, a general demand
for variety by all consumers, and other factors. People of Chinese, South Asian
and Middle European origin were among the five fastest growing ethnic groups
from 1986 to 1991. The majority of these consumers live in Toronto, Montreal
and Vancouver and their food spending patterns tend to differ from the Canadian
average. The total market for Chinese food was estimated in 1993 at $2.8
billion. The other two markets were $228 million and $240 million respectively.
Many ethnic foods and beverages are currently being imported but there maybe a
potential to manufacture products in Canada for the local market and for
export.
TOURISM
The tourism ministry has announced a $2 million Vacation
BC program aimed at encouraging residents to explore their own province. While
some in the international tourism industry now rank B.C. as one of the top 10
destinations in the world, the government feels residents take the province for
granted or are not aware of all it has to offer. The domestic market remains
the backbone of tourism contributing 54 per cent of overall revenues which were
$3.24 billion last year. Research shows that by encouraging residents to take
one more trip a year within B.C., spend $5 more per person per day, and stay
half a day longer, it could boost revenues by $1 billion a year. Latest figures
show that in the first quarter, 700,000 international visitors arrived in B.C.
a 14 per cent increase over last year. Residents spend $4.9 billion annually
out of the province.
ICED TEA
Canadians drank $15.9 million worth of iced tea in the
year ending April 1995, up 98 per cent from the year before. And in B.C. we got
through $3.7 million worth, up 62 per cent over the last twelve months.
DRIVING
Last month, police in Colebrook, N.H., followed a 1989
Ford Escort when they noticed it was being driven by a seven-year old. They
questioned the boy after he parked the car and removed the keys from the
ignition. He told the police he was going to be late for school. The boy owned
a bicycle.
TRIVIA
A self-esteem task force in Santa Clara, California, has
been disbanded because members were not bothering to show up.
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