answer the questions please chapter 9 page number 328 to 371
Suresh-
Videorespondquestion.docx1.) 1.The govt providing aid to the young domestic industries to help them mature gain market leadership to compete with much larger foreign competitors. Creates jobs and promotes the exchange of technology and skills, which helps the Candian aerospace industry in long-term growth. It maintains a favorable balance in trade and protects its industry from unfair competition in the global market. They wanted to maintain Canadian jobs and protect their domestic companies. Regulators recognized the wider benefits of wireless and operational processes that will allow the wireless sector to maximize the revenue and contribute to the Canadian economy . Former CRTC chairman Konrad Von Finckenstein said the intention behind foreign ownership rules was to ensure broadcasting remained in-country hand and driven by a desire to protect Canadian culture and ensure don’t get swamped by Hollywood,” said Von Finckenstein, who chaired the regulator from 2007 to 2012. “Canada has restrictive foreign ownership rules in telecoms and broadcasting which are intended to support Canadian cultural objectives but which also reduce competitive pressures,” the OECD reported in 2016. Greater competition in telecoms and broadcasting could lower prices and increase access to fast, high-quality networks, raising business efficiency by enhancing the synchronization of goods, services, and payments in the supply chain.” 2.a)Canadian wireless industry has a major impact on the supply and demand side as its contributions to GDP, employment, and government revenues. On the other side, it improves Canadian business productivity through wireless voice services, data services, broadband, and other content and applications. The telecom industry in Canada has strict foreign ownership rules in the world. The federal government introduced the Telecommunications Act in 1993 to protect Canada's culture. In 2008, the Canadian wireless market generated $16.3 billion and 40 percent of all Canadian telecommunication revenues, and the sector showed a 14% compound growth in revenues in the four years from 2004 to 2008. b) The foreign ownership restrictions by the Canadian telecommunications market contrast starkly with the telecommunication market's general openness and the non-discriminatory application of most other provisions. These restrictions only serve to slow down the development of the market, particularly the local market, which is the most capital intensive. Canada is at the forefront of OECD countries where market entry procedures for facility-based operators have been streamlined. These procedures should also apply for entry to provide international telecommunication services. The regulator tends to be thorough in following consultation procedures. These procedures are often too slow in a market area that, characterized by rapid market and technological change, requires speed in decision making. One reason for this may be insufficient resources in the CRTC on the telecommunication side. 3) Benefits- Market liberalization and competition bring more significant benefits. Lowering of national and international long-distance prices. Competition stimulating the rapid development of the broadband investment. Improved quality of service. Along with international enhanced services and technology with more employment opportunities. B) Threats- Less revenue generation for local market and economy. The capture of other industries on the Canadian economy and young/ local markets. Fewer job opportunities for Canadian citizens and major involvement of foreign regulators in decision making. REFERENCES https://www.mondaq.com/canada/Media-Telecoms-IT-Entertainment/100736/The-Canadian-Mobile-Wireless-Industry-is-Changing-More-Operators-and-Rethinking-Foreign-Investment-Restrictions https://financialpost.com/telecom/tight-reins-leaves-our-telecom-sector-open-to-criticism-but-sadly-not-competition https://www.cwta.ca/CWTASite/english/pdf/OVUM_Study.pdf
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