1. FDI - https://globaladvantageconsulting.com/canada-must-rethink-its-intangible-economy-strategy/ 2. Capacity constraints - https://www.theglobeandmail.com/business/economy/article-companies-see-capacity-constraints-labour-crunch-as-business-outlook/ 3. Metals - https://www.newswire.ca/news-releases/rising-demand-for-green-metals-renews-growth-optimism-for-canadian-mining-companies-884108047.html 4. Mining - https://www.consulting.ca/news/2371/canadian-miners-optimistic-as-commodity-prices-rebound 5. Manufacturing - https://www.bnnbloomberg.ca/manufacturing-is-leading-canada-out-of-recession-report-1.1630528 6. Supply chain resiliency - https://www.bdo.ca/en-ca/insights/advisory/procurement/procurement-and-supply-chain-strategies-during-covid-19/ 7. Supply chain - https://www.consulting.ca/news/2398/canadian-organizations-continue-to-grapple-with-supply-chain-challenges 8. Brain drain - https://financialpost.com/fp-work/canada-is-losing-its-competitive-edge-for-attracting-talent 9. Competitiveness - https://www.youtube.com/watch?v=ow_eiWwVVVo 10. Digital - https://brookfieldinstitute.ca/four-reasons-we-need-to-upgrade-canadian-smes-tech-adoption-and-skills/

1. FDI (FOREIGN DIRECT
INVESTMENT) –
CANADA
Paul Young CPA CGA
July 31, 2021

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa

3. AGENDA
• Stock Market vs FDI
• FDI by year
• Durable Goods and Capital Expenditure
• Budget 2021
• Grants and Subsidies
• Job Clusters

4. FDI VS STOCK MARKET

5. FDI BY YEAR
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/210427/dq210427a-eng.htm

6. FDI BY YEAR
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/210427/dq210427a-eng.htm

7. FDI BY YEAR
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/210427/dq210427a-eng.htm
The stock of foreign
direct investment in
Canada increased by
$28.0 billion in 2020.
While the management of
companies and
enterprises remained the
leading industry, the
largest growth in 2020
was in the professional,
scientific and technical
services industry (+$12.8
billion), followed by
wholesale trade (+$6.6
billion). Conversely, the
largest decrease was
observed in the mining
and oil and gas extraction
industry (-$11.4 billion),
reflecting a divestment in
this sector over the year.

8. FDI BY YEAR (INTO CANADA
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/210427/dq210427a-eng.htm

9. FDI BY YEAR (INTO CANADA
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/210427/dq210427a-eng.htm

10. BLOG – DURABLE GOODS
Capital expenditures on non-residential construction and machinery and equipment are expected to
increase 7.0% to $266.2 billion in 2021, following a 9.2% decline in 2020 largely attributable to the economic
shock from the COVID-19 pandemic. While capital spending on non-residential structures is expected to
reach $175.2 billion, up 7.5% from 2020 and surpassing the level achieved in 2019, the $91 billion
anticipated for machinery and equipment (+6.2%) falls short of fully offsetting the 13.4% decline reported
in 2020.
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/210226/dq210226b-eng.htm
Here is my latest look at durable goods and capital spending - https://www.slideshare.net/paulyoungcga/durable-goods-
and-capital-spending-usa-and-the-world-march-2021

11. FDI / CAPITAL INVESTMENT
Source – Fraser Institute
industry-level-private
-sector-capital-expenditures-in-canada-1990-2019.pdf

12. BUDGET 2021
Your policies are a disaster for the economy!
1. Little of the budget supports the goods-producing sector including
critical areas of supply chain management
2. Canada natural resources sector should be cornerstone of any
recovery
3. Canada manufacturers continue to move to more automation
This economist gave your plan a “D”
https://www.youtube.com/watch?v=WxpVughNIGg
My work
https://www.slideshare.net/paulyoungcga/path-forward-for-
canada-budget-2021

13. JOB CLUSTERS
https://financialpost.com/technology/liberals-supercluster-program-falling-short-of-promised-jobs-economic-growth or
PBO -https://betakit.com/supercluster-funding-74-million-behind-schedule-according-to-new-pbo-report/
I have argued for many years that all post-secondary schools should be innovation hubs as part of aligning private sector
with education as part of taking ideas from incubation to market
a) Has Canada lost its way with innovation - https://www.slideshare.net/paulyoungcga/2019-election-innovation-and-rd-
canada-2014-to-2017
b) I have looked at key clusters with fisheries and oceans. The money could have flowed through existing grant programs.
There was no need to create a new entity - https://www.slideshare.net/paulyoungcga/aquaculture-fish-farming-and-
harvesting-analysis (see slide 17)
c) I look at innovation over 4 years ago as part of looking at ways to best support taking ideas from incubation to market -
https://www.slideshare.net/paulyoungcga/innovation-and-research-and-development-tax-credits-canada
d) Too many people do not understand subsidies. Direct subsides are a problem, especially if the program picks and
chooses winners and losers. The best way to handle support is via the tax code -
https://www.slideshare.net/paulyoungcga/subsidies-vs-taxation-analysis-and-commentary
e) More focus needs by all level of government on policies and programs that support economic growth as well as protect
the environment - https://www.slideshare.net/paulyoungcga/getting-goods-to-market-what-needs-to-happen-by-all-
levels-of-government

14. GRANTS AND LOANS
Last week, in the midst of a global pandemic and deep recession, the Trudeau government unveiled its new plan to
dramatically reduce greenhouse gas emissions. Despite adamantly stating it had no plans to increase the carbon tax beyond
the planned $50 per ton, the government has now committed to a $170 per ton carbon tax by 2030. The previous $50 per ton
exposed many industries to competitiveness risks due to rising costs—the new carbon tax will exacerbate those risks.
Specifically, the federal carbon tax is set to increase by $10 a ton a year until it reaches $50 per ton in 2022. Under the new
plan, the carbon tax will increase by $15 per ton starting in 2023 until it reaches $170 per ton.
The competitiveness risk comes from the increasing costs Canadian firms will face from the carbon tax. Firms pay not only
on their own emissions but also on emissions of their suppliers through higher prices. Put simply, the carbon tax makes it
more expensive to produce goods.
https://www.fraserinstitute.org/blogs/higher-federal-carbon-tax-will-imperil-canadian-competitiveness
More focus should be on policies related to zero waste - https://www2.slideshare.net/paulyoungcga/how-to-maximized-the-circular-
economy
More focus should be on innovation centers through making all colleges, trade schools, and universities as hubs for innovation -
https://www2.slideshare.net/paulyoungcga/2019-election-innovation-and-rd-canada-2014-to-2017
WTO needs to reform as part of eliminating direct grants and subsidies to the private sector -
https://www.instituteforgovernment.org.uk/explainers/world-trade-organization-subsidies
More focus on getting goods to market - https://www2.slideshare.net/paulyoungcga/getting-goods-to-market-what-needs-to-happen-by-
all-levels-of-government

15. SUMMARY
• Canada needs to get more competitive in terms of its policies. All levels of government need to work together
as part of tax and regulatory reforms - https://www.slideshare.net/paulyoungcga/how-to-improve-canada-
global-competitiveness
• Automation will continue be part of the economic recovery - https://www.slideshare.net/paulyoungcga/whats-
next-for-automation-243483514
• More needs to be done to support the circular economy - https://www.slideshare.net/paulyoungcga/how-best-
to-managed-the-circular-economy
• More needs to be done to support getting goods to market - https://www.slideshare.net/paulyoungcga/how-
to-reshore-supply-chain-management-april-2021

16. TRAINING AND DEVELOPMENT
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel
free to review my material
on
https://www.udemy.com/
(search Paul Young CPA
CGA)
• These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies