OCTOBER 1994 Economic Digest - Importing and Exporting

OCTOBER 1994 Edition

BRITAIN

            For years the British Disease was synonymous with labour unrest and low productivity. This is no longer the case. Britons are the hardest workers in Europe. The average Greek takes three hours for lunch and Italian civil servants have just six hour days. Even Germans manage an hour and a half meal break. But market analysts report that Britons work long days with short lunches. They also lag behind in annual holidays with an average of 20 days compared to 30 in Germany and 25 to 30 in France. Britain also has the least public holidays a year--eight. Germany and Spain have the most with 14. Observers say Japanese businessmen continue to hold British workers in high regard, a contributory reason for the high Japanese investments in Britain over the past few years.

SMALL BUSINESS

            The Canadian Imperial Bank of Commerce is giving away do-it-yourself workbooks that small business owners can use to develop business and financial plans. The CIBC also sees its Guide to Business Planning as an aid in obtaining financing. It's available free from any CIBC commercial banking centre or by phoning 1-800-465-2422.

NEBS

            The New Exporters to Border States (NEBS) program is now 10 years old and has contributed to the training of over 8,000 Canadian exporters, mostly small and medium-sized enterprises. NEBS is a one-to-two-day crash course in export marketing. Participation fees are low and the excellent programs are put together by various Canadian border posts across the United States. It is estimated that 50 per cent of NEBS companies engage in exports after their participation in the program. Participants learn all the basics of exporting, including transportation  matters, customs brokers, export insurance, distribution networks, and much more. Canadian Consulates in the U.S. running NEBS missions are Boston, Buffalo, Detroit, Minneapolis and Seattle. Interested companies can contact the nearest International Trade Centre, co-located in Industry Canada offices to register for a NEBS mission.

SATISFACTION

            The chairman of the American Research Group has advised Canadian retailers to advertise that their products come with a satisfaction guarantee in their fight to keep customers during the superstore onslaught from the south. He also said that salespeople should learn to understand the needs of customers and even send out hand written thank-you notes to build loyalty. He claimed that about 40 per cent of Canadian stores will disappear unless they learn how to do battle with the U.S. retail giants. A recent study indicates more than 70 per cent of Canadians questioned said they would buy at a new competitively priced store--whether shoes or mattresses--rather than stick with their current store. Stores that do survive will do so mainly by boosting customer loyalty--not necessarily by lowering prices. A survey of 500 Canadians and 800 Americans indicated Canadians are generally more loyal to the stores where they shop than are Americans.

OUTSOURCING

            Outsourcing by big companies means big opportunities for nimble entrepreneurial firms. Coopers & Lybrand, which has surveyed companies in the U.S., reports that the most popular areas for outsourcing over the past year were payroll, 68 per cent; tax compliance,  48 per cent; employee benefits and claims administration, 46 per cent; maintenance and equipment, 35 per cent; manufacturing, processing and assembly, 33 per cent; sales representatives or brokers, 27 per cent; internal auditing, 21 per cent; and accounting services, 19 per cent.

RAILWAYS

            Trains are arriving all over Europe. Germany, Spain and Italy all have versions of the high-speed French TGVs. Soon it will take only three hours from London to Paris, without airport hassles or traffic jams. In the U.S. Amtrak is pondering which sort of high-speed train will be chosen to run in the lucrative Boston, New York, Washington corridor. And Texas is trying to raise funds for a high-speed triangle linking Houston, Dallas and Austin. All over East Asia huge investment is pouring into railways. By 2000, China alone will be spending almost $50 billion (US) on railways.

            Trains have many natural advantages over other forms of transport. They consume less energy than cars and trucks, cause less pollution and take up less space than roads. Above all, in crowded industrialized regions such as Western Europe, they are fast. In Europe, airlines are in poor shape to reply. This year, they will lose about $3.5 billion despite a rising market. Where fast trains and airlines have competed head to head, as they have for 10 years between Paris and Lyon, the trains have won taking in that case, 90 per cent of passengers.

CULTURE?

            One of the most controversial aspects of the final days of the GATT Uruguay Round was the issue of the US television programming industry. The US exports around $2.5 billion dollar's worth of TV programming. And that does not include theatrical showing of movies, home videos, and the booming business of international satellite networks aimed at other countries' cable, microwave and home satellite receivers. All told, US exports of movies and TV programming amounted to at least $5 billion in 1993. The reverse trade--US purchases of foreign shows, TV networks, and movies--totalled less than $300 million last year. 

SAVINGS

            The way Canadians are saving their money is undergoing change. In the 1960s, houses, land, cars, furniture and appliances constituted about 44 per cent of individual Canadians' assets. About 49 per cent of their assets took the form of cash, stocks, bonds, life insurance and pensions. In the 1970s when the first wave of baby boomers reached their mid-twenties, their investment in housing--coupled with the rising costs of these houses--shuffled a bigger share of Canadians' personal wealth into living space and the things that fill it. By mid-decade half of the average Canadians' assets was tied up in housing and only about 45 per cent was tucked into financial investments. This trend reversed in the 1980s and 90s as more and more boomers began  shifting their savings into paper wealth, the kind of investment they hope will generate a healthy retirement income. In 1993, 52 per cent of Canadians' assets took the form of cash and other financial instruments. Homes, land and durables fell to a 46 per cent share. This latest shift has taken place during a period when the personal wealth of Canadians more than doubled to $2.2 trillion (from $850 billion in 1980). This represents almost $77,000 for each Canadian, up from $34,700 in 1980.   

ABSENTEEISM

            When 860 Canadian companies, with between 100 and 500 employees, were surveyed about absenteeism levels, 39 per cent were unable to answer the questions. The others said that staff members were off work an average of 5.5 days a year, costing companies 2.3 per cent of payroll. That figure does not include the cost of lost productivity or hiring temporary replacements. Nor does it include longer absences covered by formal short-term or long-term disability programs for which premiums cost an equivalent of 1.85 and 0.99 per cent of payroll respectively.   

THE FUTURE

            The Business Council on National Issues has unveiled a 10-point "growth and employment strategy for Canada" which calls for no new taxes and a zero federal deficit before the next economic downturn. The plan also calls for local government to deliver more services and duplication between levels of government to be eliminated---without opening up the constitution. Other recommendations include: Canada should draft a "coherent 21st century vision," such as aiming to be the top economic performer in the G7 by the year 2000; Revamp social programs to make them cheaper while targeting only those in need; "Non-inflationary growth" should be a central tenet of economic policy; The federal government must honour its pledge to cut the deficit to 3 per cent of GDP by 1996\97; Harmonize provincial taxes in a new Value Added Tax only if it means no new taxes and, improve education and training, including a longer school year.

INFORMATION TECHNOLOGY

            Canadian trade posts in the U.S. produce a newsletter on the IT industry (including telecommunications), providing Canadian exporters with relevant and timely market information and intelligence in this field. Articles cover companies, events, decisions, and technology that may have an impact on the market for Canadian IT products and services. Contributors also deal with joint ventures, strategic partnerships and investment relations. Currently, the newsletter is mailed out in hardcopy every other month to almost 1,500 Canadian companies at $2.35 a copy. The Canadian Consulate General Trade Office in San Jose, California distributes the newsletter which is now available by E-mail on Internet. Just send an E-mail message to the San Jose office (canadian@shell.portal.com) to give them your Internet address.  

BUSINESS INVESTMENT

            Massive investment by Canadian companies in everything from fax machines to computer-aided machine tools has radically altered the profile of business investment over the past decade. The total value of all fixed assets--everything from telephones to office buildings--is expected to reach $1.6 trillion this year, up 38 per cent from 1984, and the technology side is taking over from bricks and mortar. During the decade, the value of assets tied up in machinery and equipment grew at more than twice the rate of buildings and engineering assets--5.3 per cent compared with 2.2 a year.

            Soft assets like computers, telephones and plant equipment now account for 33 per cent of all fixed assets, up from 27 per cent in 1984. Increasingly, companies are choosing to invest in machines instead of people because that is where they perceive they get more value. Companies can deduct from their taxes the money they spend on machinery and equipment while payroll taxes and lower productivity act as a disincentive to hiring new workers. The trend has been most evident in the service industries like retailing, finance, insurance and hotels.

TECHNOLOGY

            Twenty years ago, the Calgary Stockyards sold hundreds of thousands of cattle a year through live auctions in a complex of corrals, loading pens and barns along the railroad tracks. Those days are over. Today, its nerve centre is a plain room in an office building where a computer is connected by phone lines and modems to buyers and sellers in ranches and offices. Now, the stockyards conducts most of its business in cyberspace.

USER DOESN'T PAY!

            A local government in Britain has suspended a program which sent young delinquents on vacations as a "character building" exercise after one young offender was arrested for drunk-driving shortly after returning from an 80-day African safari with his social worker at a cost of more than $10,000 to the taxpayer. Other young convicts have been sent skiing.

TRIVIA

* In 1989, according to the Worldwatch Institute, the world marine fish catch sold for $70 billion (US), however, catching these fish cost $124 billion.

* One-third of the Canadian population is involved in the educational system, either as students, teachers or administrators.

* Around the world, golfers spend almost $6.5 billion a year on equipment, as much as the GNP of Latvia.

* Burglars have broken into a British prison and escaped with a safe containing about $1,500. Inmates of the prison, which houses low-risk offenders, are complaining about lax security.

SEPTEMBER 1994 Economic Digest - Importing and Exporting

SEPTEMBER 1994 Edition 

IMMIGRANTS

            Canadians swarmed into British Columbia last year. For the ninth consecutive year, most of the movers were from Ontario and Alberta. In fact, so many Canadians moved to B.C. that had it not been for new immigrants, seven of the other nine provinces, including Quebec and Ontario, would have dropped in population. Ontario and Quebec lost 14,000 and 8,500 respectively through interprovincial migration but gained 122,000 and 41,000 new immigrants. 79,000 moved into B.C. from other provinces and 39,000 left the province for a net gain of 40,000 and 31,000 new immigrants arrived for a total gain of over 71,000. Newfoundland, New Brunswick, Saskatchewan and Alberta actually lost residents. B.C. also boasted the three most popular areas for migrants from other provinces with Greater Vancouver gaining 18,512, the Victoria area up 3,959 and Central Okanagan up 3,337. 

QUEBEC

            Quebec has confounded predictions and profited more from the Canada-U.S. free trade agreement than the country as a whole. It was anticipated that Quebec would fare worse under free trade because it has a higher than average proportion in vulnerable economic sectors such as textiles and fewer industries in high value goods.

            A recent study (which does not include the impact of NAFTA) shows that Quebec exports to the U.S. have surged since free trade came into effect. Counting all products with lower tariffs under free trade, Quebec's exports to the U.S. grew 43 per cent between 1988 and 1992 compared with 36 per cent in the previous four year period. For Canada as a whole, exports to the U.S. grew by 33 per cent after the agreement and 27 per cent during the previous four years. In higher value goods alone, Quebec exports to the U.S. climbed 90 per cent during the four years compared to 49 per cent for Canada in total. The study also shows that as trade grew between Canada and the U.S. after the free trade was signed, trade with other countries dropped.

           

GARDENING

            According to Statscan, the garden industry has been growing fast. Horticulture and nursery sales for 1993 reached $960 million, nearly double the $491 million sales in 1986. Throughout the country, nearly 10 million square metres of greenhouses were under glass or plastic last year with 88 per cent of operators being in Quebec, Ontario and British Columbia.

            Bedding plants brought big business with some 572 million plants prepared for sale last year as well as 27 million potted geraniums which are tallied in a different category. Some 75 million cut roses were produced in Canada last year. The growth in this industry is achieved without government subsidies or helped by import quotas and strong competition is now coming from Mexico and South America.

BOEING

            Given the number of Canadian companies sub-contracting to Boeing, their sales figures are always of interest. Sales for the first half of 1994 totalled $11.7 billion with 149 airplanes delivered and 260 expected by the end of the year. To the end of June, orders were placed for 53 airplanes valued at about $9.3 billion giving a contractual backlog worth $71.2 billion. Boeing has announced that it will invest $600 million in a plant in Xian, China to build tail sections for its 737 jetliners and $100 million in Beijing for a spare parts centre and training programs for pilots, cabin crew and maintenance staff. The Canadian Consulate General in Seattle offers very specialized assistance for Canadian companies seeking advice about Boeing contracts. For more information, please call Ron Merrick, Boeing Liaison Officer at the Consulate General at 206-443-1777.

EURO-FRAUD

            The cost of fraud in the European Union may exceed $5 billion annually. Some examples: Vast heaps of wheat supposedly sitting in Italy and Greece have rotted or disappeared, but EU taxpayers have paid $102 million for them in "intervention funds" which subsidize poor Mediterranean farmers. Austrian milk powder, magically evading customs on its way to Italy, cost taxpayers another $48 million. By pretending that 90 per cent of their olive oil was high quality when it was not, Italians pocketed another $40 million. Polish cattle taken to Italy for slaughter, then sent to Malta, brought back to Italy then re-exported from the EU cost taxpayers another $24 million. Herding sheep back and forth between Northern Ireland and the Irish Republic is a well known device for collecting EU subsidy premiums on ewes twice over. Data processing equipment and training courses, paid for by the EU, mainly for Portuguese and Italians, have cost $160 million but the courses have never been taught and the equipment has never been seen. The cost of fraud in just 30 new or recent cases adds up to $544 million.

WAL-MART IN MEXICO

            When the first Wal-Mart store opened in Mexico City nine months ago, all 72 cash registers rang constantly. On a recent Saturday, the high point of the shopping week in Mexico, 51 of them were closed. The sales slump is only one of the many problems besetting Wal-Mart in Mexico. In addition, prices are so high that some Mexicans still cross the border to shop in U.S. Wal-Marts.

            Some analysts say retail outlets are growing far faster in Mexico than the buying power of potential customers. Mexico's median annual per capita income is still only $1,956. When Wal-mart opened a super centre--a combination grocery and general merchandise store--in Monterray last year, it had to bar the door to control crowds. The local press soon lambasted the company for charging 15 to 20 per cent more than the Wal-Mart in Laredo, a two-hour drive away to the north in Texas.

            Wal-Mart say the higher prices in Monterray reflect transportation costs from the U.S. and that many duties have not yet been phased out. In many cases, profit margins have been reduced compared to the U.S. Also, Wal-mart lacks the leverage with Mexican vendors that its size gives it in the U.S. In addition, distribution systems are very different in  Mexico, where thousands of suppliers ship directly to stores rather than to retailer warehouses. Up north, Wal-Mart's efficient control of distribution is largely credited for its low prices. Also, analysts say that as most Mexicans do not own cars, it limits stores' geographic reach. And most Mexicans, because of their shopping patterns and limited incomes, own very small refrigerators and so can't easily store a week's worth of groceries. Experts believe that Wal-Mart will eventually succeed in Mexico, in the meantime, other U.S. retailers are watching their problems with interest. 

DUTY-FREE

            A company has offered to pay $184 million for a six year contract, starting in 1996, for duty-free space in the new terminal at Vancouver International Airport, twice the cost of a new runway. The company expects $500 million in sales over the period. If sales exceed projections, the company will pay an additional percentage. Vancouver airport is the duty-free capital of Canada, out-selling Toronto which has triple the air traffic. This is due to big-spending Japanese tourists who buy expensive items on the West Coast before returning home, and by increasing numbers of Taiwanese, Korean and Chinese. International travellers now account for about 2 million out of a total of 9.5 million travellers and it is projected that this will jump to 2.8 million by 2000 and 4.5 million by 2010.       

TOURISM

            A unit of the Conference Board of Canada said the lower Canadian dollar, compared with its U.S. counterpart, is keeping Canadians close to home and drawing more foreigners to the country. U.S. visitors to Canada increased 5 per cent for the first four months of the year, while travellers from Japan increased 15 per cent and arrivals from France grew 21 per cent. Canadians crossing the border dropped nearly 11 per cent in the first four months. The total travel industry in Canada should grow about 4 per cent this year.

            In 1993, Canadians spent $5.5 billion on leisure travel to the U.S. compared with the $4.3 billion they spent in Canada. This year marks the third in a row that fewer Canadians will visit the U.S. which helps Canada's balance of payments but not the U.S. travel industry. It is estimated that in July and August alone, Canadians will spend about $200 million less in the U.S., and for the whole year it could be down by as much as $2 billion.

U.S. EXPORT MARKETS

            With the agonizing decision now made concerning granting most-favoured-nation status to China, the U.S. Commerce Secretary will shortly lead a high powered trade mission to China taking two dozen top business executives. The trip will result in a framework agreement between the U.S. and China and a number of specific agreements involving energy, transportation, finance and information systems. According to the Commerce Department, there are more than $1 trillion worth of infrastructure projects likely to be developed in Asia over the next 10 years, almost one-third of which will be in China and Hong Kong.

            The United States has identified 10 large emerging markets that will be of importance to its economy (which Canadian companies would do well to bear in mind). Four are in Asia: China, Indonesia, South Korea and India. Three are in Latin America: Argentina, Brazil and Mexico. Two in Central Europe: Turkey and Poland, and South Africa.

GATT

            According to a new federal government survey, a Canadian family of four will see its annual income rise by at least $400 a year thanks to the new global trading pact which comes into effect next year. The GATT Agreement should see an extra $3 billion a year pumped into the economy. For the average Canadian, that means a 0.4 per cent rise in income every year in perpetuity once all the provisions of the deal are in place. The gains will show up mainly in cheaper imported goods, better prices for Canadian goods on world markets and cuts in agricultural subsidies. These projected gains are in addition to the 2.5 per cent a year boost that free trade with the U.S. has already given Canada, according to the Finance Department.

EXPORT CHALLENGES

            In a recent survey by the Canadian Chamber of Commerce, the major reason Canadian firms give for having trouble cracking export markets is lack of contacts. Nearly half the respondents cited this reason. But results vary with size. More than 60 per cent of firms with fewer than 20 employees cited foreign contacts compared with only 33 per cent of firms with 500 workers or more. But 54 per cent of the big companies mentioned adverse trade rules compared with 17 per cent of small firms. Other reasons given were: Lack of market knowledge 36%, Financing 33%, Transportation costs 32% and Customs problems 15 per cent.

FREE TRADE

            According to a U.S. Commerce report which released figures for the pact's first six months, the NAFTA is proving to be an economic boon to the United States, Mexico and Canada. U.S. exports to Mexico are at record levels, rising 17 per cent for the first six months compared to the same period a year ago. About $24.5 billion (U.S.) in U.S. goods were shipped to Mexico. Exports to Canada hit $55.6 billion by June, up 10 per cent. Even as U.S. exports increased, Americans were buying more Canadian and Mexican goods. Imports from Mexico were up 21 per cent to $23.4 billion while exports from Canada were up 10 per cent to $61.4 billion. 

TECHNOLOGY

            Nearly 300 small to midsize companies  were recently asked to rate the effectiveness of various technologies in improving customer service through expediting orders, tracking sales and logging customer comments. The survey was based on their satisfaction and usage levels. The highest rating, with 87%, went to the fax\modem for order taking. Bar-coding to track orders and deliveries received an 80% rating followed by 72% for an on-line computer system for order taking.

AUGUST 1994 Economic Digest - Importing and Exporting

AUGUST 1994 Edition

ABOUT OURSELVES

            With this issue, we start the third year of our Economic Digest. It began with a modest distribution of 75 and now reaches over 750  monthly. It goes to most Canadian provinces and every State in the Union. One copy goes to Beijing. Information from it is translated and published in the Trading Post, a Vancouver Chinese Newspaper with a 15,000 circulation. A shorter version is available downtown courtesy of B.C. Trade.

            The Digest earns no revenue, in fact it costs us a considerable amount over the course of a year. But we hope that we continue to generate goodwill through this venture as we strive to show that we are interested in all aspects of the economy, not just the area in which A & A Contract Customs Brokers is specialist. It is our philosophy that if the economy is doing well, then we all benefit, whatever our business.

            We always have far more information left each month than we are able to fit in the Digest. In the coming year we hope to expand the sharing of this information utilizing the new technology. Using Faxback, we would like to make single-page Digests available monthly on specific sectors such as Retail, Manufacturing, EDI and USA\NAFTA. If readers have any suggestions about areas you would like to see us cover, please call us at 538-1042, or Toll Free 1-800-663-4270.

INTERPROVINCIAL TRADE

            The recent deal to reduce trade barriers between provinces is less ambitious than hoped, but makes progress in key areas such as procurement and investment. Governments will no longer be able to favour provincial suppliers in tendering for goods worth more than $25,000 and for services or construction projects over $100,000. The provisions will be extended to municipalities, municipal organizations, school boards and publicly funded academic, health and social institutions by June 1996. Governments spend about $49 billion a year on goods and services.

            Provinces will be prevented from using incentives such as tax breaks, grants or debt guarantees to get businesses from another province to relocate. Also, qualified workers will find it easier to work in another province and provinces will recognize licensing and other work standards in other provinces. Consumer health and safety standards cannot be used to discriminate against out-of-province suppliers. A work plan is to be completed by 1996 which will see common provincial standards for the trucking industry such as truck weights and dimensions, safety rules and bills of cargo.

            However, the agreement leaves in place barriers to agriculture, energy and alcohol. Consumers will still pay too much for electricity, milk and eggs and have less choice in wine and beer. Disputes will be handled by a panel of experts. Decisions are not binding but will be made public and the injured province will have the right to retaliate with measures of "equivalent effect."

HEALTH CARE

            Industry Canada has developed the Canadian Health Care Services Suppliers (CHCSS) computerized data base in collaboration with Health Canada. The CHCSS is being launched to enhance the Department's knowledge of Canadian private sector supply capability and to facilitate the matching of export opportunities with Canadian supply capability. The information in the database will also be used to encourage the formation of industry alliances and other partnerships for the pursuit of export opportunities.

            Interested applicants complete a questionnaire and profile sheet and return them, with company brochures, to Industry Canada. Search capabilities are extensive and users will be able to search on the basis of any fields (questions) contained in the questionnaire. To obtain a questionnaire or more information, call Luc C. Pamerleau at Industry Canada, Tel: 613-954-2951.

COMMUNICATIONS

            Ford Motor Co. will spend $100 million (US) on a system to link its dealers by satellite for employee training, customer service and relay of business information. The system will allow instructors at Ford headquarters to lead live video training sessions in its North American dealerships. It eventually may give dealers instant access to comprehensive information on individual customers who bring in their cars for repairs. Ford will pay for installation of dishes at dealerships and equipment to send and receive data and the dealers will provide televisions and a personal computer to tie to the system.

VACATIONS

            According to the Conference Board of Canada, fewer Canadians plan vacation trips this year than in any of the previous seven years. Only 59 per cent of those surveyed said they would take a trip this summer, down from 68 per cent last year and 70 per cent in 1990. Despite an improving economy, Canadians are still holding back on travel spending. Instead, they are putting their money into cars, appliances and furniture.  

THE FUTURE

            A study of 2,500 U.S. facilities managers showed what they expect workers will find in offices in ten years:

* Almost three-quarters will have on-site fitness centres.

* About 40 per cent will have day-care.

* 95 per cent will have increased security.

* More than 76 per cent will have voice mail.

* 16 per cent will have individual temperature controls in workspaces.     

PERMITS

            The United States has recorded imports of 366,700 tonnes more wheat and barley than Canada has officially exported during the first eight months of the crop year. It represents about 16 per cent of legal exports of more than  2.2 million tonnes. Record sales into the U.S. market this year have touched off a trade feud between the two countries, with promises of import restrictions unless Canada voluntarily cuts back. Farmers are required to obtain export permits for any wheat or barley heading south. The RCMP are looking into a variety of methods that may have been used to get grain over the border including not stopping at Customs and altering export permits.

ABSENTEEISM

            Sickness-benefit programs in Sweden used to pay workers 100 per cent of their salary for their first 180 days of sickness, resulting in the highest absentee rate in the Western world. (The average Swede missed 26 days of work per year and the problem was particularly acute on Mondays.) The government addressed the problem by eliminating pay for the first day of sick leave. Before this change, car-maker Volvo had to schedule 20 per cent more workers than it needed to ensure a full production crew. After the change, Volvo and other firms found absenteeism down by 25 per cent.

CAR BUYERS

            On some of Detroit's high profile new car launches, Canadians are getting much better prices--on a dollar exchange basis--than American buyers. Canadian auto companies say this is because competition for sales north of the border is much tougher these days. Canadians have less disposable income to spend on new vehicles, taxes are higher, and the economic recovery is slower. For example, a Ford Contour will sell south of the border for $14,655 (U.S.). Ford Canada's domestic price is $16,895 (Can). At the current rate of exchange, the U.S. price converted to Canadian dollars would be more than $20,000.             Not surprisingly, some Americans are trying to take advantage of their buying power in Canada but domestic new car dealers are prohibited from selling to U.S. customers under franchise agreements. The auto makers say there are other good reasons for restricting such sales. One is that vehicles made for the U.S. and Canadian markets are slightly different. Canadian cars, for example, must have daytime running lights and metric speedometers and other gauges.  

WOMEN

            According to a survey of 5,000 managers by the British Institute of Management, many managers believe "female" skills such as teamworking, consensus management and negotiating will become more valuable for businesses to succeed in the next century. Male bosses will have to learn these skills or become obsolete. But surveys show British women are still far behind in terms of pay and prospects for promotion. Only 9 per cent of managers and three per cent of senior managers in British companies are women.

U.S. GOVERNMENT PROCUREMENT

            A new information kit is now available to Canadian businesses and professional services wishing to sell to the $180 billion U.S. federal government procurement market. "Selling to the U.S. Federal Government: Non-defense Products and Services" consists of 23 fact sheets providing a comprehensive introduction on how to do business with the U.S. federal government. Produced by Foreign Affairs and International Trade in conjunction with the Canadian Embassy in Washington D.C., it reflects new opportunities available to Canadian suppliers under the NAFTA. The kit is available free from International Trade's InfoCentre in Ottawa, Fax 613-996-9709. Quote publication code #159UA.

RETAIL

            Another retail giant is planning to move north. Sportmart Inc, is a fast-growing chain of sports goods superstores based in Illinois and expects to open in Toronto early in 1995. This retailer was founded in 1971 and has 45 superstores and 3,800 employees. Typically, each Sportsmart has a broad and deep selection of name-brand products, with 65,000 items for sale. For example, 600 types of running shoes, 100 kinds of tennis rackets and 70 varieties of sleeping bags. An average store is around 4,000 square metres and sells no seconds or irregular merchandise. The company is also scouting for real estate in Ottawa and Vancouver although it may run into problems in B.C. where Sport Mart Discount Superstores Inc is an established Kamloops-based chain with 12 outlets in B.C. and Alberta.

JOBS

            Traditionally, B.C. employment growth is led by the service sector with the goods-producing sector usually trailing. But job statistics for June show that, year-to year, the goods sector moved to the forefront in job creation. Over the year, the goods sector added 54,000 jobs while the service sector produced 26,000. The change is attributed to growth in wood related manufacturing and construction, both of which belong to the goods sector. The number of jobs actually fell in some segments of the service sector. For example, retail sales lost 23,000 jobs, public administration 6,000 and transportation 7,000. Between June 1993 and June 1994, B.C. created 80,000 new jobs, about 40 per cent of the Canadian total. 

DEBT

            Equity magazine calculates that if every province and territory put in $442-million per month to retire the existing federal and provincial debts, at the end of 100 years the debt will not be reduced by even one cent.

ADVERTISING

            Advertising to an international market can be tricky and translations often have hilarious results. When KFC exported its "Finger Lickin Good" slogan to China, it emerged as "Eat your Fingers Off". Similarly, Pepsi didn't have much luck trying to get them to guzzle their cola. "Come Alive With The Pepsi Generation" ended up as "Pepsi Will Bring Your Ancestors Back From The Dead". Coors Beer lost its fizz in Spain when their hip phrase "Turn It Loose" came out as "Drink Coors and get Diarrhoea". When Otis Engineering took part in a Moscow exhibition, "completion equipment" was translated as "equipment for orgasms". And "Body by Fisher" boasted by General Motors in Belgium came out as "Corpse by Fisher". In Spain, when GM introduced the Nova they quickly discovered the word no and va mean "doesn't go".

PAPERWORK

            Citing budget constraints, the office of the Montana governor has refused to issue paperwork proclaiming such events as National Accordion Awareness Week. So far there has been no public outcry.