WHY EXPORTING PROVIDES SUSTAINABILITY
According to estimates provided by Economic Co-operation and Development (OECD), Canada’s economy is projected to grow by 2.3% in 2018 (OECD, 2016). This growth is largely attributed to the strength of the export market, as Canadian business look to expand past our shorelines. As stated by Statistics Canada, 2017 began with three months of trade surplus, largely due to strong motor vehicle and agri-food sector sales (Statistics Canada, 2017). Peter Hall, who is the chief economist with Export Development Canada, believes that overall, the agri-food sector holds much promise and potential for Canada (Business Development Bank of Canada, 2017).
For businesses to succeed and expand, breaking out of the Canadian sphere is absolutely crucial. As reported in an article in Canadian Manufacturing, the Canadian market only accounts for 1.5% of the world’s economy. Not only is trading internationally a defensive strategy, but it is also an offensive one (Osak, 2017). That is, say a business is experiencing challenges in one area, rather than being forced to focus on only that area, a business can mitigate potential losses by redistributing or expanding elsewhere. As more eloquently put:
“Having multiple irons in the fire across several markets can provide revenue stability and smooth out costs in the face of the foreign and domestic regulatory changes that deeply affect Canada’s economy” (Mazgay, W., 2017 in Canadian Manufacturing)
At Canadian Rangeland Bison & Elk, while we still believe strongly in maintaining a strong domestic/local market, we also feel having diversification in our markets is crucial to business success. As such, we work hard on maintaining a strong relationship with our European and American markets. In the business world, there is constant fluctuations in dollar values, changing tariffs, and trade regulations; being able to cope with these factors is a key element of sustainability.
Until next time, stay bison strong.
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