MAY 1997 Edition
MERCOSUR
Canada is exploring the possibility of a free-trade
agreement with the South American trading bloc Mercosur--a deal that could put
pressure on the U.S. to keep its commitment to expanding trade among the
Americas. If Canada were to join Mercosur as an associate member, for example,
it would give Canadian exporters preference over U.S. businesses in gaining
duty-free access for their products in Brazil, Argentina, Uruguay and Paraguay.
In 1996, Canada exported $1.6 billion in products to Mercosur countries and
imported $1.35 billion.
COMPUTERS
A survey of 1,320 senior technology officials by Ernst
& Young indicates that nearly eight of 10 companies in North America
surveyed have lost valuable information in the past two years to computer
viruses, hackers, bitter employees, spies or disasters. Most of the losses--63
per cent-- were the result of viruses, but nearly one-third were caused by the
malicious acts of insiders. Of the 30 per cent of companies that described
their losses, 14 per cent said they lost between $250,000 and $1-million, and 2
per cent said they had lost more than $1-million.
TENDERING
After studying Ottawa's contracting system for two years,
a Commons committee concluded that federal departments bypass the tendering
system far too often in giving contracts for goods and services to their own
lists of suppliers. Ottawa spent $8.6 billion on contracts in 1994-95, of which
$3.1 billion was awarded without tender. MPs also rebuked the Treasury Board
for not enforcing its policies, directives and guidelines governing contracts
handed out by the departments.
1-900
According to Strategic Telemedia of New York, psychic
hotlines are the anchor of the 1-900 business. It is estimated they take in
$300 million a year, one third of the total 1-900 market. The average psychic
phone call brings in $40.
EDC
Export Development Corporation (EDC) supported a record
$22 billion of Canadian exports in 1996, serving almost 3,000 customers and
increasing business volume by 28 per cent. Over 18,000 other firms benefitted
indirectly from EDC activities, when they acted as suppliers to EDC‑financed
transactions. In 1996, the proportion of small and medium‑sized exporters
assisted by the Corporation rose 23 per cent over the previous year, accounting
for over 85 per cent of its customer base. Also, in 1996, the volume of exports
by EDC's smaller customers rose 36 per cent to $3.8 billion, while nearly 140
of EDC's smallest customers expanded their export sales to more than $1
million. Responding to strong demand for exports to higher‑risk markets, EDC
committed an additional $1.5 billion in financing for these markets in 1996.
FAST FOOD
Contrary to popular belief, price isn't the main impetus
for U.S. consumers who dine on fast food. A survey of 1,032 consumers by Advo
Inc of Connecticut found that a convenient location motivates fast-food fans
the most. Fast service and a hankering for a specific food rank second and
third in importance. Price, in fact, scores seventh on a list of 10 reasons for
choosing one restaurant over another. Other factors include easy access, good
value and the influence of dining companions. "Healthy food" ranked
last on the list.
PATTERNS
American spending patterns are changing and they are
plowing more of their income into goods or services that they think will help
them stay healthy, on the go and in the know: mountain bikes, educational toys,
museum memberships, chiropractic sessions, computers and home-entertainment
centres. Among the big fluctuations: Commerce Department data show that while
total U.S. spending rose 15 per cent to $4.69 trillion over the past seven
years, spending on new autos declined 28 per cent to $74 billion. By contrast,
home computers are consuming about 12 times the portion of the spending pie
they did seven years ago. Americans spent over $22 billion in casinos in 1996,
more than twice what they gambled seven years ago and spending on alternative
medicine has surged 69 per cent since 1989.
SIGNATURE EXHAUST
This is the sound a car makes when it is running. The
auto industry hires musicians and focus groups surveys to tune its engines. The
Mazda Miata is engineered to mimic the sound of vintage British MGs and
Triumphs.
CHINA
China announced a second round of tariff cuts at the
recent APEC meeting in the Philippines. It will further reduce import duties
15% to 23% by the year 2000. This follows a reduction of 12.9% a few months
ago. European critics claim this is just a ploy to improve China's entry into
the World Trade Organization and that the tariff cuts mainly fall in sectors of
little interest to most Western exporters, while the tariffs on other products
like vehicles remain prohibitively high.
POLICE
In 1996, there were 54,311 police officers in Canada ‑ a
1.3% drop from 1995. The number of police per 100,000 population (181)
decreased for the fifth consecutive year in 1996, to its lowest level in over
25 years. Police strength increased steadily during the 1960s and early 1970s,
peaking in 1975. Between 1975 and 1991, police strength remained relatively
stable. Manitoba had the most officers per 100,000 population (194) in 1996,
followed by Quebec (187) and Saskatchewan (187). Newfoundland (146) and Prince
Edward Island (149) had the fewest. The proportion of female officers has been
increasing steadily since 1974, with females now accounting for 1 in 10
officers.
DWELLINGS
The number of occupied private dwellings in Canada
continues to grow at a faster rate than the country's population. While the population
rose 5.7% over the five‑year census period, the number of occupied private
dwellings increased 8.1%. The 1996 Census counted 10,899,427 dwellings,
compared to 10,079,442 five years ago. The number of occupied private dwellings
in British Columbia rose 14.6% to 1,433,533, the biggest percentage increase
among provinces.
GUATEMALA
With economic reforms and a peaceful end to its 34‑year
civil war, Guatemala offers new trade and investment opportunities for Canadian
firms. Some of these opportunities stem from the country's ambitious peace‑building
effort. The (estimated) $2‑billion program will include construction of
physical and social infrastructure and comprehensive institutional and legal
reform. Other opportunities flow from deregulation, planned for 1997, of energy
and telecommunications services, and from anticipated tenders for proposals to
administer the state‑owned railway, airport and ports as private concessions.
In addition, Guatemala has announced import tariff reductions on a range of
products from primary metals, through intermediate and finished products. The
duty on imports of primary metals, for example, was slashed from 5 per cent to
1 per cent effective January 1997.
RETIRING
According to the ScotiaMcLeod Investment Executive
newsletter, on average, men are retiring at 61 and women at 58. Based on
current life expectancies, this means that their investments must stretch 17
non-working years for men and 23 years for women.
POPULATION DISTRIBUTION
The 1996 Census confirmed a trend seen for a number of
years showing the distribution of Canada's population shifting from east to
west. In 1951, 15% of Canada's population lived in Alberta and British
Columbia. By 1996, that had increased to 22%. Similarly, Ontario's share of the
population has increased from 33% in 1951 to 37% in 1996.
SERVICE
Traffic jams in Bangkok are so bad that cab drivers and
traffic police are being trained to help women deliver their babies. Women
trying to get to hospitals give birth to an estimated 350 babies each year in
taxis.
FOREIGN CONTROL
In 1995, the foreign controlled share of operating
revenue in Canada rose 1.3 percentage points to 29.8%. This near‑record rise
was caused by a combination of strong revenue growth in the foreign‑controlled
sector, weakness in the domestically controlled sector and foreign takeovers.
Revenue growth for foreign controlled firms was three times that of Canadian‑controlled
firms. This was mainly due to weak revenue growth in small and medium Canadian
firms. The pattern of lower growth in small Canadian firms has persisted
through the 1990s. Small Canadian companies operate predominantly in the
domestic market, which has grown relatively slowly since 1991.
BREATHING SPACE
After two spectacular years, growth in world trade slowed
down in 1996 to register a still‑impressive 4% expansion in volume terms. In
contrast, world GDP growth increased
slightly. Japan's exports fell last year; in 1990‑96, Japan saw its
imports expand six times faster in volume terms than exports.
DUBAI
In the Gulf, as well as the Near East, a retail
revolution has led to the development of some of the world's largest and most
sophisticated shopping malls. Disposable incomes, free from taxation, have
lured retail developers into multi‑billion‑dollar investments. Dubai is a
regional hub supplying a West Asian market of some 2 billion consumers. Imports
into Dubai, which acts as a re‑export centre for the Gulf, North Africa and the
Commonwealth of Independent States (CIS) have recorded a year‑over‑year growth
of nearly 5 per cent over the past two years, with textile imports among the
top 10 trading commodities. Textiles are currently Dubai's second‑largest re‑export
category, with a value of almost US$1 billion annually. In the GCC as a whole,
the re‑export business has risen from 1982 by some 160 per cent.
NATIONAL WEALTH
In 1996, national wealth rose roughly 3% to reach $2.9
trillion, in line with the rise in domestic expenditures. The gain was the
result of acquisitions and revaluations of tangible assets like automobiles,
houses, land, household appliances, trucks, and business machinery and
equipment. Individuals accounted for just over 49% of national wealth at the
end of 1996, up slightly from 1995. National wealth grew 4.0% in the personal
sector, compared with 2.5% in both the corporate and government sectors in
1996.
RETAIL
Annual department store sales rose for the third
consecutive year. This increase came entirely from discount stores. With total
sales of $8.5 billion in 1996, discount store sales rose 8.6% from 1995. Their
sales have increased every year since 1992. Discount department stores recorded
a year‑over‑year increase in every month of 1996. On the other hand, consumers
spent $6.56 billion at major department stores in 1996, 0.4% less than in 1995.
This was the fourth annual decline in as many years.
PLANTS
On average, an important new drug has been produced for
every 125 plant species studied according to the Herb Research Foundation. The
success rate for chemical compounds is one in 10,000.
DETERRENTS
British farmers have found a novel way to deter hungry
foxes: lambs that glow in the dark. Researchers have discovered that coating
the lambs with horrible-tasting phosphorescent paint discourages predators.
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