Monday, 11 February 2013
Canadian Investors Have a New Perception of Emerging Markets
Canada will need to boost trade with emerging markets, in order to limit its dependence on the United States. This is an essential step, if the country expects to grow in the years to come. Canada’s historical reliance on the U.S may perhaps have been sufficient for previous centuries but hasn't prepared Canada for what’s to follow in coming centuries. At the moment, nearly three-quarters of Canada’s exports, go to the U.S. That is too concentrated, especially considering the United States' circumstances and mounting debt issues. Canada now has a window of opportunity, considering the performance of a strong dollar and monetary system, while other nations are affected by many economic obstacles. Because such great opportunities to invest have a have a habit of closing quickly, it is imperative that this nation develops strong independence, and becomes a friendly trading partner with current emerging markets, such as Brazil, China or India.
Bank of Nova Scotia’s Rick Waugh argues that too many Canadian companies are stuck in an old way of thinking. A portion of Canada’s trades remain within the United States but Canada must change its philosophy and be more open to trading with other opportunistic markets. Mr. Waugh’s organization, Scotiabank, is considered Canada’s biggest international investor with operations in more than 50 countries. Last year alone, Scotiabank purchased 51 percent stake in Colombia’s Banco Colpatria for $1-billon dollars. Other companies should take guidance from Waugh’s strategy and introduce openness towards investments in emerging markets and budding economies.
Ultimately, Canada has to build its independence in the global trading market by introducing new markets and becoming a friendly and well-known trading partner. If Canada fails to increase trade partners with emerging markets they will never establish a strong economic foundation which would benefit them for years and years to come. Canada must demonstrate their economy’s autonomy when discussing global trade, as relying on one source proves unstable correlating conditions.