APRIL 1997 Edition
ASIAN TRADE
Canada's share of the Asian import market has dropped by
33 per cent to a 1.6 per cent share during the past decade. The other Group of
Seven top industrialized countries (excluding Japan) collectively have dropped
only 6 per cent. The decrease is partly because the Asian nations are
increasing their trade among themselves. Even though Canada has increased the
value of its merchandise and service exports into Asia, (about $28 billion in
1995), $30 billion worth of imports from Asia have swelled the Canadian balance
of trade deficit. Even Australia outdid Canada in its trade with Asia with
exports of more than $34 billion.
PROFITS
Larger firms were substantially more profitable than
medium and smaller enterprises in 1995, in part because they continued to
benefit from Canada's export boom. In 1995, large firms had an average rate of
return on assets of 6.0%. That compares to 4.0% for medium‑size firms and 4.2%
for smaller firms. Average rates of profitability have generally been on the
rise since 1992, with the most substantial increases occurring in 1993 and
1994. Rates of return for large firms peaked at 9.0% in 1988. This compares
with the 1995 rate of 6.0%. Taking into account the fact that current rates of
inflation are much lower than those in 1988, the rates of return have fully
recovered.
FOREIGN CARS
Since the early 1990s, foreign automakers have built more
vehicles in North America, bolstering the total volume of vehicles built in the
region. As a result, sales of passenger cars built in Japan plunged 79.8% from
236,700 in 1992 to 47,900 in 1996. Sales of other imported cars declined 30.4%
from 57,900 to 40,300 during the same period. For the first time, sales of cars
built in other countries out‑numbered sales of cars built in Japan three times
last year (January, April and August).
SUBSIDIES
The World Bank issued a report urging an end to subsidies
on fossil fuels, which increase global warming and pollution. Coal, the worst
offender, is still heavily used in China, India, the ex‑Soviet Union and
Eastern Europe, though Russia and China have made big cuts in subsidies. Oil
and gas producers are least keen to make cuts.
JEANS
Levi Strauss paid $25,000 for a pair of its own jeans,
thought to be among the oldest in existence and dating from the late 19th
century. They were originally found in an old mine in Colorado before turning
up in a vintage‑clothing store in New York.
TELEPHONES
In the time‑honoured way of trade diplomacy, 69 members
of the World Trade Organisation reached a last‑minute deal to open their
telecoms markets to competition and foreign investment, and agreed to observe
common principles of telecoms regulation. Together, the signatories account for
more than 90% of global telecoms revenues of $660 billion. Liberalisation is
expected to lead to lower telecoms prices around the world.
MEXICO
According to the latest issue of U.S. Magazine
Entrepreneur International, Mexico is a land of opportunity. The publication
lists why entrepreneurs might consider this market of 91.6 million consumers.
* The government has untangled much of the red tape for
setting up a foreign firm. So far, it has privatized 81 per cent of the 1,150
state-owned companies in key sectors, such as petrochemicals, pharmaceuticals,
air transport and tourism.
* Mexico, Latin America's most populous country is youthful--50
per cent of the population is under 20. Its work force makes up 39 per cent of
the population, which makes it ideal for manufacturing or other
labour-intensive businesses.
* A U.S. poll found that the average Mexican household spent
$30,500 (U.S.) on consumer goods in 1995.
PROTECTION
Fewer than a quarter of Canadian manufacturers use legal
means to protect their innovations according to Statistics Canada. And big
companies are more likely than small ones to use protections such as patents,
trademarks and formal secrecy agreements. Small firms tend to rely on trade
secrets before shifting to patent protection as they grow. Many companies
believe they are better protected by getting new products to market quickly or
by adopting more complex designs, instead of using patents. Foreign-controlled
firms are more likely to use legal protection than their Canadian counterparts,
PALLETS
Every year, goods arrive in New York on more than six
million wooden pallets. A furniture and flooring firm, Big City Forest,
reclaims rosewood, cherry, oak, mahogany, maple and other valuable hardwoods
from 180,000 pallets, crates and other unwanted packing. The company owner says
millions of pallets go to waste each year consuming 1.5 billion board-feet of
oak while 500 million board-feet are used annually for flooring. He claims that
if one-third of the oak in tossed pallets were reclaimed, not one oak tree
would need to be cut for flooring.
EXOTIC FARMING
Alberta's elk farming industry took to the air recently
as 144 bull elk were flown in a chartered 747 jumbo jet to Seoul, South Korea.
Worth nearly $1.5 million, the elk are going to a farm where their antlers will
be removed each spring for use in health foods and herbal medicines. This is
the fifth shipment of Alberta elk in the past six years. Korea is the biggest
buyer of velvet. New Zealand, China and Russia are the major suppliers followed
by the U.S. and Canada. Elk ranching is worth about $400 million a year to the
Alberta economy. A cargo of 180 ostriches will soon be leaving Alberta for
Korea.
CHEMICALS
Canadian chemical companies wishing to discover new
markets, recruit new partners, create strategic alliances or discover new
products and technologies now have a useful tool at their disposal.The
Association for the Development of the Chemical
Industry has developed an Internet site likely to be of value to small-
and medium-sized chemical companies. The address is: http://www.adicq.qc.ca
SHOPPING
According to advice given to the Canadian Federation of
Independent Grocers, stores must start displaying meal ingredients in
ready-to-cook combinations if they want to stay competitive. Cooks are pressed
for time, but willing to pay for convenience, analysts say. Convenient
location, parking, reputation and cooking "solutions" all take
consumer priority over value and savings. Canadians like to cook more than
Americans who have taken to grocery-store sold, ready-to-eat "meal
solutions" with more gusto than Canadians. An average Canadian pantry
holds 65 different food items compared to 20 in an American pantry. Small
grocers are being advised to hire their own home economists or meal-assembly
advisors.
LOYALTY
A new study shows that retail workers are more loyal to
their companies than the average Canadian employee. About 40 per cent of retail
workers were found to have been with their current employer more than 11 years.
This compares with about 30 per cent for the entire workforce. 21 per cent of
retail workers stayed with the same company for between 11 and 20 years and 18
per cent stayed for more than 20 years. In comparison, Statscan figures show
that 18 per cent of all workers stayed with the same company for between 11 and
20 years and 12 per cent stayed more than 20 years.
HAPPINESS
An international survey of 7,500 workers in 13 countries
found that Canadians are the happiest and most committed to their employers,
followed by workers in Finland, Spain and the United States. Employees in Asia,
Germany and the United Kingdom rated the lowest. The study did not try to
determine why employees are happier in one country than in another but did
assess what factors affect employee satisfaction and found wide cultural
differences.
ENERGY SAVINGS
According to Environment Canada, landfills can provide
power and in many cases it is untapped. Half a million homes in Canada could be
heated from the one million tonnes of methane released from Canadian landfills
every year. The gas is being recovered from only 27 sites in the country.
CURIOUS
It's too late to do anything about it but, the U.S.
economy doesn't have enough 25-year-olds. It is suggested that the importance
of this not be overlooked by retailers, or anybody concerned with the economy,
because 25-year-olds are first-time buyers with avaricious material needs and
desires. They are the newly married and they bring brand new demand to the
economy as they load up on furniture, and assorted hardware and enter the adult
world of family formation, possessions and credit cards. When similar
demographic events occurred in the past, an economic downturn occurred.
HAIR
The American Hair Loss Council reports that 400,000
follicly challenged men in the U.S. purchased wigs and hairpieces last
year.---about enough fake hair to carpet the outside of the World Trade Center
Towers in New York.
TRAINING
A Conference Board survey of 200 companies indicates
middle managers get lots of training. The study found 70 per cent or more
middle managers were receiving training in four broad categories--leadership,
information technology, interpersonal and managerial\administrative training.
Senior managers get less training and executives receive the least of all,
having learned a lot on their way to the top. But executives were highly
represented in one type of training: 20 per cent take international management,
compared with only 8 per cent of middle managers and supervisors.
TECHNOLOGY
A computerized cake-decorator has been developed by a
Kansas company. The patented photo-to-frosting technology involves a
four-colour inkjet printer that is loaded with food colouring; bakers can scan
in a piece of artwork and have it rendered into icing in minutes.
MEDICINE
Increasing numbers of Canadians are seeking the help of
alternative medicine but most continue to consult a family physician. Over
three million Canadians a year visit non-traditional practitioners and the
numbers are growing. Many are looking for help with chronic problems that have
not responded to mainstream treatment. Most patients opted for this type of
treatment after hearing from family or friends who had been helped.
RAILWAYS
Most autumns in Britain, falling leaves made railway
tracks slippery, wreaking havoc with train schedules. But not last fall, when
delays were down 30 per cent from the previous year. The government thinks that
it might be because, for the first time since the 1940s, most of the state-run
rail system is in private hands. Britain's train system can now make long-term
investment without interference from The Treasury. Government subsidies are
dropping, service is improving and some fares are falling. The private sector
is using high-pressure water jets to clear the leaves and spreads a gritty
paste on the tracks for better traction.
TRIVIA
When hooked up to an electroencephalograph and jiggled, a
bowl of lime Jell-O emits the same waves as the human brain.
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