http://www.theglobeandmail.com/report-on-business/keep-ownership-in-canada-crtc/article1532879/
Summary
Canada should cap their foreign ownership on broadcasting and telecoms to 49 percent. At the moment, foreign ownership restrictions limit direct and indirect investments to 46.7 percent. The current broadcasting and telecommunication act is fairly complicated and has resulted in inefficient companies trying to comply to rules. The government stated that their budget would slowly begin to liberalize restrictions on foreign ownership in the telecommunication sector. Within the telecommunication sector, many companies have assets in broadcasting which have regulations and concerns about cultural heritage.
Connection
Canadian businesses with foreign ownership has increased Canada's economic activities through investments. Although that may sound good, those foreign countries export goods back to their country for manufacturing. Restrictions on foreign ownership would increase the competition between current companies and may result in quality products. Foreign ownership benefits Canada in many ways though. It provides many jobs since Canada has much foreign investment. Also foreign investment depends on the economy. When the Canadian economy is doing poorly, companies tend to invest elsewhere.
Reflection
I think it would be a good move for Canada to increase foreign ownership. It would encourage more investments from other countries and benefit Canada's economy. Although foreign investment would compete with different industries for the consumer dollar, the quality of goods will improve. With this happening, Canada would still have control over their telecommunications because foreign investments hasnt dominated the market yet at 49%. Telecommunication plays a big role in Canada and will provide jobs to many people.
Monday, June 14, 2010
Tuesday, April 27, 2010
Chapter 8
http://www.theprovince.com/Spring+clean+your+accounts/2951314/story.html
Summary
Having more than one bank account makes it easier for you to choose the better investment- interest rates. A reason why someone would want multiple bank accounts would be to keep money separate. One account may be used for investments, another for savings, and another for monthly spending. Although most major banks would match each other's rates, it is easier to bargain for lower interest loan rates. There is a drawback that goes along with having more than one bank account. The accounts usually come with administration fees or service charges regardless of whether you use them or not. Also with so many accounts, it gets hard to track them down, maintain them, and the deal with the paperwork.
Connection
Many people have multiple bank accounts, and some with very little use. With people making investments daily interest rates are really significant. With multiple bank accounts, there will be slightly different interest rates for each one. Since interest rates are determined in the market through the demand and supply of money, the Bank of Canada influences it the most with their supply of money. Also with interest rates changing about, it will also affect the amount of inflation that goes on in the economy. With that in mind, an increase in the demand of money could lead to higher interest rates.
Reflection
Many people including myself have multiple bank accounts, and some which i seldomly use. They should probably combine them into one or two accounts so that it is easier to track and manage. Since it is with a major bank, they will usually match each other's interest rates if you ask. The same goes for loan interest rates. Although it is going to be a major change to adapt for some people, it may make life easier for others without having to worry about payments, etc.
Summary
Having more than one bank account makes it easier for you to choose the better investment- interest rates. A reason why someone would want multiple bank accounts would be to keep money separate. One account may be used for investments, another for savings, and another for monthly spending. Although most major banks would match each other's rates, it is easier to bargain for lower interest loan rates. There is a drawback that goes along with having more than one bank account. The accounts usually come with administration fees or service charges regardless of whether you use them or not. Also with so many accounts, it gets hard to track them down, maintain them, and the deal with the paperwork.
Connection
Many people have multiple bank accounts, and some with very little use. With people making investments daily interest rates are really significant. With multiple bank accounts, there will be slightly different interest rates for each one. Since interest rates are determined in the market through the demand and supply of money, the Bank of Canada influences it the most with their supply of money. Also with interest rates changing about, it will also affect the amount of inflation that goes on in the economy. With that in mind, an increase in the demand of money could lead to higher interest rates.
Reflection
Many people including myself have multiple bank accounts, and some which i seldomly use. They should probably combine them into one or two accounts so that it is easier to track and manage. Since it is with a major bank, they will usually match each other's interest rates if you ask. The same goes for loan interest rates. Although it is going to be a major change to adapt for some people, it may make life easier for others without having to worry about payments, etc.
Wednesday, April 7, 2010
Chapter 5
http://www.theglobeandmail.com/globe-investor/markets/markets-blog/the-close-shrugs-over-unemployment/article977618/
Summary
The United States may dismiss employment numbers, with news suggesting that the economy may be stabilizing. The unemployment rate is currently at 8.5% and 5.1 million Americans out of work since the recession. Although the unemployment is still high, the good news is that the stock market index rose above 80 from 39.7. Also the Bank of America Corp. went up 5% as well as Ford Motor Co. which went up 11.7%. In Canada, the Royal bank of Canada rose 1.3% and the Toronto Dominion Bank rose 2.7%. However, gold prices plummeted after the price fell to below $900 (USD) an ounce, losing almost $12.
Connection
The connection with the chapter is unemployment and inflation. Inflation is a good way to measure and indicate the progress of the nation. With the economy slowly stabilizing, unemployment should decrease and more people should be seeking jobs. Also with inflation involved, most of those stocks and financials are bound to rise and fall. With that happening, it will cause unemployment rates to fluctuate as well.
Reflection
I think that with the market getting better since the recession will cause unemployment numbers to decrease. If the economy continues to improve and progress like this, it should not be long before the economy is back to normal. But with inflation in mind, I don't know how long it will take due to the fact that the market can take twists and turns. Its assuring to know that the economy is getting better from the recession. An example would be that the Canadian dollar is at par with the American dollar.
Summary
The United States may dismiss employment numbers, with news suggesting that the economy may be stabilizing. The unemployment rate is currently at 8.5% and 5.1 million Americans out of work since the recession. Although the unemployment is still high, the good news is that the stock market index rose above 80 from 39.7. Also the Bank of America Corp. went up 5% as well as Ford Motor Co. which went up 11.7%. In Canada, the Royal bank of Canada rose 1.3% and the Toronto Dominion Bank rose 2.7%. However, gold prices plummeted after the price fell to below $900 (USD) an ounce, losing almost $12.
Connection
The connection with the chapter is unemployment and inflation. Inflation is a good way to measure and indicate the progress of the nation. With the economy slowly stabilizing, unemployment should decrease and more people should be seeking jobs. Also with inflation involved, most of those stocks and financials are bound to rise and fall. With that happening, it will cause unemployment rates to fluctuate as well.
Reflection
I think that with the market getting better since the recession will cause unemployment numbers to decrease. If the economy continues to improve and progress like this, it should not be long before the economy is back to normal. But with inflation in mind, I don't know how long it will take due to the fact that the market can take twists and turns. Its assuring to know that the economy is getting better from the recession. An example would be that the Canadian dollar is at par with the American dollar.
Friday, February 26, 2010
Chapter 7
http://www.reuters.com/article/idUSTRE5BN2I620091224
Summary:
The articles discusses the effects on credit cards with the new rules implemented in 2010. Lenders will not be able to raise interest rates on existing credit card balances unless the account is at least 60 days past due, and will not be able to charge fees for customers spending more than their limit, unless cardholders agree to the fees. Some companies already estimate their net income would be reduced by $500 million to $750 Million dollars. Credit card lenders enjoyed profits earlier but the party ended as the financial crisis sent default rates to record highs. Also with a steady decline in unemployment doesn't help this situation.
Connection:
The connection with the article and chapter 7 is the creation of money. The credit card is not money, but represents instant access to money through a loan. When someone deposits money into the bank and you swipe your credit card, the money spent is created. You can spend however much but that money is still in the other person's bank. So therefore money is created.
Reflection:
I think that with the new rule on the credit cards, it is great for the cardholder because there needs to be an agreement between the credit card company and the cardholder before additional fees take place. Also with the Vancouver 2010 Olympics just finished, the taxes in order to pay off the debt will be fairly large. With this new rule, people could spend that money that would be spent on credit card fees to pay for the taxes due to the Olympics.
Summary:
The articles discusses the effects on credit cards with the new rules implemented in 2010. Lenders will not be able to raise interest rates on existing credit card balances unless the account is at least 60 days past due, and will not be able to charge fees for customers spending more than their limit, unless cardholders agree to the fees. Some companies already estimate their net income would be reduced by $500 million to $750 Million dollars. Credit card lenders enjoyed profits earlier but the party ended as the financial crisis sent default rates to record highs. Also with a steady decline in unemployment doesn't help this situation.
Connection:
The connection with the article and chapter 7 is the creation of money. The credit card is not money, but represents instant access to money through a loan. When someone deposits money into the bank and you swipe your credit card, the money spent is created. You can spend however much but that money is still in the other person's bank. So therefore money is created.
Reflection:
I think that with the new rule on the credit cards, it is great for the cardholder because there needs to be an agreement between the credit card company and the cardholder before additional fees take place. Also with the Vancouver 2010 Olympics just finished, the taxes in order to pay off the debt will be fairly large. With this new rule, people could spend that money that would be spent on credit card fees to pay for the taxes due to the Olympics.
Thursday, January 21, 2010
Chapter 3-4
http://www.theglobeandmail.com/news/national/british-columbia/bc-to-harmonize-sales-tax-with-gst/article1228772/
Summary
Starting July 1st, 2010, harmonized sales tax will be introduced in B.C. The harmonized sales tax will be PST and GST Combined to a total of 12 percent. Once implemented, the HST will reduce buisness taxes by $1.9 billion and save companies $150 million in administrative costs. Any person spending less than $400,000 will not be affected by the new tax, but for new homes there would be an extra cost in sales tax. The federal government will bay $1.6 billion to B.C for the transition to adapt the new B.C. HST.
Connection
The B.C. HST is an excise tax. The tax affects shelter, clothing, and footwear, but consumer prices fell after harmonization. Basically now people with lower income will be affected more than those with higher income. The chapter discusses the role of the government and by introducing the HST they have tried to generate revenue for themselves. This could be a sign of a constantly growing economy. Taxes should be fair but the new tax and the increase on taxes in homes, some people may not be able to afford a house anymore.
Reflection
With this new tax introduced, the poorer get poorer and the richer get richer. Also house owners will be subjected to pay this tax. With the housing prices in Vancouver averaging at around $700,000 it will cost the buyer to pay more for the house than they would have to before. The only things the government has exempt from the HST are goods, services, and safety related items. Instead of the government creating new taxes and finding new ways to receive money from the people, they should find a way to conserve their money and not spend it on unnecessary things.
Summary
Starting July 1st, 2010, harmonized sales tax will be introduced in B.C. The harmonized sales tax will be PST and GST Combined to a total of 12 percent. Once implemented, the HST will reduce buisness taxes by $1.9 billion and save companies $150 million in administrative costs. Any person spending less than $400,000 will not be affected by the new tax, but for new homes there would be an extra cost in sales tax. The federal government will bay $1.6 billion to B.C for the transition to adapt the new B.C. HST.
Connection
The B.C. HST is an excise tax. The tax affects shelter, clothing, and footwear, but consumer prices fell after harmonization. Basically now people with lower income will be affected more than those with higher income. The chapter discusses the role of the government and by introducing the HST they have tried to generate revenue for themselves. This could be a sign of a constantly growing economy. Taxes should be fair but the new tax and the increase on taxes in homes, some people may not be able to afford a house anymore.
Reflection
With this new tax introduced, the poorer get poorer and the richer get richer. Also house owners will be subjected to pay this tax. With the housing prices in Vancouver averaging at around $700,000 it will cost the buyer to pay more for the house than they would have to before. The only things the government has exempt from the HST are goods, services, and safety related items. Instead of the government creating new taxes and finding new ways to receive money from the people, they should find a way to conserve their money and not spend it on unnecessary things.
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