Prepared for: the Department of Foreign Affairs and International Trade (DFAIT)
POR Number: 059-09
Contract Number: 08170-090271-001/CY
Award Date: 03/12/2010
Fieldwork Completion Date: 28/01/2010
Project Authority: Kevin Chappell
Almost one-quarter (24%) of surveyed firms are involved in international business, with a further 4% planning to be in the next few years. Current involvement in international business has decreased significantly since 2009, but is generally consistent with what it was in 2007 (24% in 2010 vs. 36% in 2009 and 27% in 2007). Among executives of companies currently involved in international business (n=109), a small majority (52%) perceive the United States to be the best trade opportunity for their firm, followed at a distance by Asia (28%) and Europe (25%). Fewer than one in ten identified other regions, including South America, the Middle East and North Africa, Australia, India, Mexico, and Africa. There has been a general decline in the likelihood of identifying most regions, with the largest year-to-year decline recorded for the U.S. (from 72% in 2009 to 52% in 2010).
Executives of firms involved in international business identified numerous types of support that the Government of Canada could provide to help their business take advantage of international trade and investment opportunities. That said, none of the suggestions was identified with much frequency. Leading the way was increasing financial support for international business (14%), stabilizing the economy/currency exchange (8%), helping to promote products or services (6%), and lowering the value of the Canadian dollar (6%).
When it came to potential barriers to international business, the following were most likely to be identified: access to capital (42%), taxes (41%), complex international rules and regulations (36%), and lack of reliable market intelligence (32%). These were followed by skills shortages (29%), inter-provincial commercial barriers (29%), and foreign ownership restrictions (12%). With a few exceptions, the likelihood of assigning significance to these potential barriers has decreased considerably since 2007 and 2009. The one noteworthy exception is inter-provincial barriers – this wave, 29% consider this a significant barrier compared to 16% in 2009 and 23% in 2007.
In total, 51% of executives of firms involved in international business said they were aware of organizations offering trade services, although relatively few of these were aware of any organizations by name. When these executives (n=70) were asked to identify the organizations of which they were aware, the only one identified frequently was Export Development Canada (73%). All other organizations were identified by no more than a few executives. The main ones included Business Development Canada (n=7), Canadian Manufacturers and Exporters Association (n=6), Saskatchewan Trade and Export Partnership (n=4), Canadian Trade Commissioner Service (n=3), Ministry of Economic Development and Trade [Ontario] (n=3), Ministère du Développement économique, de l’innovation et de l’Exportation [Quebec] (n=3), and the Department of Foreign Affairs and International Trade (n=3). Executives who did not identify the Canadian Trade Commissioner Service (TCS) on an unaided basis (n=138) were asked if they had ever heard of the service. In terms of aided awareness, almost half (47%) claimed to be aware of the TCS.
The survey results will be used by DFAIT to inform decision makers and policy planners and to provide insight on how to improve service delivery. The cost of this research was $18,050 (GST excluded).