ipl-logo

Explain The Barriers To Entry In The Canadian Economy

1732 Words7 Pages

Business 201: Individual Research Assignment
The Canadian Transportation Industry is an important aspect of the Canadian Economy, representing 4.3% of total Gross Domestic product in 2015(Transportation Canada 2015). The Canadian Transportation Industry consists of the air, marine, rail and road freight sectors, which all work together in conjunction to drive Canada’s domestic and international trading activities (MarketLine Transportation Service, 2017).
1.) What are the barriers to entry in this industry?
The barriers to entry in the transportation industry, varies from sector to sector, with new entrants experiencing medium to high barriers to entry. Among the sectors, the road freight sectors have the lowest entry barriers, especially for small businesses. This is because of the relatively few capital and specialized knowledge required to enter the market. Furthermore, new entrance will also face fewer regulations compared to the others sectors. Regulations in this sector will typically cover driving abilities, insurance and the vehicle safety and driver rest time regulations set and enforced by the federal and provincial government (Sayler, 2017). Generally …show more content…

Depending on the Transportation sectors, the bargaining power of the suppliers and the type of suppliers may vary within the industry. However, within the transportation industry, the big suppliers include oil/electricity companies and transport infrastructure companies (MarketLine Transportation Service, 2017). For example, companies that operate within the road freight sector often face moderate supplier power. To illustrate the road freight sector experiences a lower amount of oligopolistic behavior among their supplier, because of the higher number fuel companies are available for automotive equipment (MarketLine Road freight,

Show More
Related
305 Words | 2 Pages

Bombardier started their business with snow vehicles to help people travel across Canada’s snow covered roads in 1937. In 1971, they entered into railway business by manufacturing rail technologies. They introduced a new rail technology called ECO4 that helps products optimize energy use, decrease energy waste, minimize CO2 emissions, increase economic value, and improve overall efficiency and total train performance in 2008. Bombardier trains add competitive advantages against rival companies in the market, while serving consumers with an energy efficient product. They have a technology called MITRAC which is a magnet motor that is eco-friendly and, cost efficient.

Read More
516 Words | 3 Pages

Trade barriers between Canada and France France imposes tariffs and to protect their own local businesses and safety of its own citizens. France, being a member of the European Union, imposes a ‘’Common External Tariff (CET)’’ on goods that enter the country from countires not in the EU. The rate of common external tariff is around 40%. It also imposed the “Conformity to European standards (CE)”, which specifies what kind of products that must have the CE sign of approval attached to the product. Moreover, France have high standards of quality inspections.

Read More
787 Words | 4 Pages

Introduction The softwood lumber dispute is one of the longest and controversial trade disputes between the United States and Canada. The dispute actually represents a number of disagreements due to the difference in lumber “production” process in Canada and the US, which affects the trade between the two nations. The disagreement began in the early 1980s, when the US lumber producers complained to the US Department of Commerce about the unfair practices of Canadian lumber industry and it is still a talking point in today’s negotiations and a solution for this problem doesn’t seem to be imminent and practical. At the heart of this long-lasting softwood lumber debate, is the United States' claim that the Canadian government is unjustly subsidizing

Read More
163 Words | 1 Pages

In almost every nation, the development of a railway created a connection throughout the country that was previously unmatched by any other form of transportation. In Canada, this evolution of the railroad was constructed on the backs of tens of thousands of Chinese immigrants. Specifically during the building of the Trans-Canada railway, over 15,000 chinese workers worked tirelessly to lay over 500 kilometers of track from 1881-1885. The dangerous nature of this work incurred the deaths of over 4000 of those workers; those who survived were left with only a meager amount of money as they received half of what their Canadian counterparts were paid. Although this railway came at a high toll, it transformed the face of Canadian transportation

Read More
1167 Words | 5 Pages

The history of Canadian public administration over the years also plays a crucial role in the system. The Canadian public administration system was initially based on the British government system but has since then transformed into a system that is unique to the country (Drysdale, p.37). That interplay evolution made an independent system for Canada, and is a “result of Canada’s political culture, and the need for public administration to adapt over time, while upholding the principles of democracy” (Drysdale, 37). Therefore, the very reason the new Canadian public administration system came to be is because of the interplay of democracy and political culture, which is arguably the greatest influence it has had. The current system in place

Read More
1025 Words | 5 Pages

Studies have shown that through trade liberalization, producers in countries will specialize, employing more people, creating the economic growth to provide more services and investments into their communities. In this case virtually all export-oriented industries in Canada will benefit from the increase in aggregate demand (access to a market of 800 million). Canada’s fishing industry has contributed more than $2.3 billion to Canada’s GDP in 2014 and employs thousands of people in 1,500 rural communities.

Read More
215 Words | 1 Pages

After six months of operations, and being one of the most successful world expositions of the twentieth century, Expo 67 closed October 29th, 1967. Expo 67 was held close to many Canadian hearts, it showed once again that Canada had finally come of age. It brought Canadians together and for the first time, Canadians showed mutual pride and a great deal of appreciation for all of its people, talents and accomplishments. It changed the worldview of Canada and more importantly it changed the view of how Canadians thought about Canada.

Read More
1047 Words | 5 Pages

On Saturday, June 21, 1919 Winnipeg went on strike. Thousands of workers in the city refused to work violence broke out in tension rose. Winnipeg was growing economic centre, large number of immigrant workers had settled in the city more so in “the North End” the citizens of Winnipeg were not happy about the immigrant workers settling in the city. The end of the war caused problems for workers, workers unrest came to head in Winnipeg in 1919. The citizens of Winnipeg that were newly settled in wanted to improve working and living conditions, these ideas show some suspicion in the wealthier citizens, most of the wealthier citizens were British-Canadians.

Read More
726 Words | 3 Pages

The threat of new entry can change in the trucking industry depending on the scale you want to implement on. Cross-country trucking, for example, would have a much higher entry cost than trucking within a couple of states, as for the former you would need many more trucks, drivers, and fuel, all of which cost money. While even a small number of trucks and drivers costs a large amount of money, this number is more palatable for many individuals, which leads them to start their own small scale trucking company. It is much easier to enter into the LTL trucking industry than it is to enter the TL trucking industry. For many companies that do both, their profit margins on LTL or VLTL tend to be higher than their profit margins for TL.

Read More
2976 Words | 12 Pages

During the 1870s, Canada and Europe suffered a great depression. So in 1878, John A. Macdonald launched his National Policy which introduced tariffs to keep Canadian markets safe from international competition, therefore creating jobs and motivating Canadian industry. He then re-launched the railway project because he felt that the transcontinental railway will help the country in terms of growth. During that time, United States already has a transcontinental railroad pressure from the south. Macdonald’s government granted massive grants to the Canadian Pacific Railway.

Read More
542 Words | 3 Pages

The year 2018 is perhaps one of the most opportune times for U.S. and foreign employers to expand their businesses into Canada. Last year, the Canadian economy saw a 3.1 percent increase in growth, and even as its rapid pace has slowed somewhat in 2018, forecasts are still predicting a solid 2.2 percent. Despite such a solid base for U.S. and foreign business prospects to gain a foothold, many businesses hesitate to expand into Canada. The apprehension is understandable, given that registering a business in Canada as a foreign employer can be complicated.

Read More
864 Words | 4 Pages

3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?

Read More
720 Words | 3 Pages

Pharmaceutical products require various types of organic chemical. There are a number of chemical suppliers present in the market. Instead of buying chemicals at the high cost, pharma companies can switch from one company to other. For specific APIs where the sourcing of raw materials is difficult, suppliers have a higher bargaining power but since most raw materials are easily available and suppliers are numerous, where one can easily replace the other, their bargaining power is low. " Bargaining power of buyer:

Read More
1316 Words | 6 Pages

If we have a large number of suppliers and a small numbers of customers the supplier buyer power is strong. In addition, barging power stay strong when the customer substitute outlay, supplier have the ability to transfer the product or to create a new products that satisfies the customer needs and wants, the customer is smart in taking a choice of what he want he have the knowledge about the product. Also the opposite is true, when there is no attractiveness to the products or market at all, cost substitution, and additional purchase price. These factors denominate the weak shape of Porters five forces of supplier power. Lebanon has a limit number of suppliers like Fattal group founded in 1897 that provides distribution of goods to small suppliers.

Read More
190 Words | 1 Pages

In my opinion, motor carriers are able to generate more revenue compared to railroads as they have a competitive advantage in terms of their services at where they are able to do things that railroads couldn’t. Railroads are an efficient transport system that could transport large tonnage over long distance associated with less expensive per freight ton at where the variable operating cost are lower. However, motor carriers have relatively small fixed investments in terminal facilities and operate on publicly maintained highways at where the expenses are directly related to the number of over-the-road units and miles operated with higher variable cost. In comparison to railroads, motor carriers are best suited to handle small shipments moving

Read More

More about Explain The Barriers To Entry In The Canadian Economy

Related Topics

Open Document