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Canada and the Netherlands have both a mature relationship based on political, investment, trade and cultural relations. Both countries are strong parliamentary democracies and have a great importance in the law. They respect for the individual and the protection of human rights (which both governments now consider the core of human security). The two-way trade between the Netherlands and Canada in 2002 was totaled $3. 2 billion, which $1. 7 billion of the Canadian export sales to the Dutch market.

The Netherlands is one of the few countries in Europe where Canada have a positive trade balance in post-war years. The Netherlands is Canada’s fourth largest investor, behind USA, France and the UK. Canadian exports to the Netherlands mostly primary and semi-fabricated materials. Although the manufactured products (computer and office equipment, electronics, machinery and instrumentation) is at this moment rising. Aluminum, forest products machinery, medical instruments, organic chemicals, mineral fuel, nickel and grain are the most important categories of export.

Imports from the Netherlands to Canada were $1. 5 billion in 2002. Machinery, mineral fuel, electrical machinery, medical instruments, photographic equipment and film, chemicals, plants and drinks are the most important categories of import. The Dutch investments in Canada have been doubled since the 1990s and it stands at $13. 8 billion. There are many Dutch multinational companies active in Canada, for example Philips, Unilever, Shell, ING Group.

For Canadian companies, whose European Union market involves direct investments, the Netherlands is a popular entry point. The Netherlands has a stable economy, strategic location, well-developed infrastructure, transportation facilities, use of international languages and long-standing relationship with Canada. They offer Canadian businesses comparatively straightforward access to one of the largest and richest trading blocs. More than 80 Canadians companies have established operations in the Netherlands and together their investments are a total of $13.

7 billion. When a new business wants to export their goods to a foreign country, they have to do some research first before they export their goods and/or services. It is very important for a business, that they get to know the country well and also whether this country is profitable or not. During this report I did some research about the country: Canada. I think Gemos BV should trade with Canada. Because, during this research, I found out that experts said that 37 countries count Canada as their number one foreign customer.

Not only have their economic grown each year, but also because they produce a lot of products. For the most of the states, Canada is the most important destination when it comes to exports. In 2003, 23 countries sent more than a quarter of their exports to Canada. Europe said that, after the USA, Canada is the most important partner. If Europe continues to move to a powerful and influential unity, the importance to Canada will also increase. This also includes the economic area that has been expanding the last couple years.

Some increases in our exports are in the high value-added sectors of the Canadian economy, just like the information and communication technology, life sciences and the transportation industries. Trading with other countries gives our business an international ‘reach’ into the global economy (including the NAFTA market). But it’s also a benefit that trading with foreign countries, it will improve the managerial, marketing and technological capabilities of our businesses. Trade also creates jobs indirectly.

It allows firms to obtain inputs to production that are cheaper or has a higher quality. For example; imports of high-tech equipment have helped a lot of U. S. businesses to reduce their costs, improve the productivity and decreased the competitiveness in the world markets. An advantage for both countries that trade with each other, consumers will have a better variety and better prices for the goods and services. The savings that the consumers have is moreover enjoyable; they have the availability to pay a low-cost goods or services with an high quality.

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