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PART 1: COUNTRY SELECTION AND EVALUATION 1.A. Country Selection [maksim]

1.B. Country Evaluation

1.B.1) Geographic [jill]

1.B.2) Demographic [ivy]

1.B.3) Cultural [sebastian]

1.B.4) Economic [mingyu]

1.B.5) Political [adam]

1.A. Country Selection

Van Horn, Metz, and Company, Incorporated (VHM) selected the country of Canada as the market to enter for the sale of the rigid Polyurethane (PUR) and Polyisocyanurate (PIR) foam product. The selection of Canada allows for VHM to expand the reach of their brand and explore potential opportunities for future expansion. VHM currently has one major warehouse and distribution center in the city of Toronto, Ontario and a sales representative, Jim Clark, who is VHM’s sole representative in the country to date.

· Easy Distribution between other US-based warehouses

· Good relations, open border, easy trade

· Rising Population and private sector

· Everything else written below….

1.B. Country Evaluation

1.B.1) Geographic Situation

1.B.2) Demographic

http://worldpopulationreview.com/countries/canada-population/

Canada ranks as the 38th most populated country in the world with an estimated current population of 37.15 million people. Between the 2011 and 2016 census, Canada’s population increased by 4.9% and has an estimated 2019 growth rate of 0.88%  (worldpopulationreview [cite properly later]). Canada’s working population

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html (properly cite later)

1.B.3) Cultural

Canadian culture is heavily influenced by American, British, and French traditions that can be attributed the country’s history and ties to the United States, the UK, and France.

1.B.4) Economic

1.B.5) Political

Elected in 2015 Prime Minister Justin Trudeau’s popularity has begun to slip somewhat. This can be attributed to the standard level of disenfranchisement that most democratically elected officials experience after a few years in office. Trudeau is still very popular and likely has many more years as Prime Minister. Since then the Government has put in place several measures aimed at supporting the middle class, including a cut of the federal government’s reduction to the second lowest personal income tax rate from 22 to 20.5% (though some opponents claim that Trudeau government’s major changes to the personal income tax system resulted in an increase of the fiscal burden for the majority of middle income Canadians). Payroll taxes will be increased to fund an expansion of the Canada Pension Plan (CPP), with the first increase taking place in January 2019. In 2017 Trudeau announced the creation of the Canada Infrastructure Bank - a new Crown corporation that operates at arm's length from the government - which should invest CAD 35 billion from the federal government into infrastructure projects. The canadian government has been working diligently over the past several years to help the country’s middle class flourish. It has lowered the personal income tax of middle class canadians by 1.5%. However this tax cut is being funded by an increased payroll tax.

The country is also heavily investing in infrastructure, with a new quasi-government initiative set to take 35 Billion dollars in funding for infrastructure projects. Such projects will, of course, require large amounts of constrauction. This could deffinatlly be an area that could be usedto help encourage insulation manufactures to invest in VHM’s new Aero gel insullation. While the Comprehensive Economic and Trade Agreement (CETA), signed with the EU in October 2016 and subject to ratification by national parliaments in Europe, should boost bilateral trade by 20%; the election of Donald Trump in the U.S. represents a risk as he intends to renegotiate the North American Free Trade Agreement (NAFTA). That is why in its fiscal budget for 2018 the Liberal government also built a USD 3 billion risk adjustment fund to account for economic uncertainties. Canada has agreed to sign the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the successor to the Trans-Pacific Partnership (TPP), which could not take effect when the United States withdrew in January 2017. As a participant in the CPTPP Canada will benefit from reduced tariffs and freer access to ten markets in Asia and Latin America.

According to Canada’s national statistics office, the country's unemployment rate reached its lowest point in over 40 years in December 2017, dropping to 5.7%, as employment rose 2.3% for its fastest growth rate in 15 years.

https://en.portal.santandertrade.com/analyse-markets/canada/economic-political-outline

A federation of former British colonies, Canada follows the British pattern of parliamentary democracy. Ties with the US are now vital, especially in terms of trade, but Canada often goes its own way.

Both English and French enjoy official status, and mainly French-speaking Quebec - where pressure for full sovereignty has abated in recent years - has wide-ranging cultural autonomy. Indigenous peoples make up around 4% of the population.

Canada is one of world's top trading nations - and one of its richest. Alongside a dominant service sector, Canada also has vast oil reserves and is a major exporter of energy, food and minerals.

https://www.bbc.com/news/world-us-canada-16841111