• Gaining power because of increases in population, exports and innovation
• More than 60% of world population growth is occurring in Asia and China & India together comprise 37% of population growth
• Large increases in middle class in these countries present great opportunities for business

Think like a car manufacturer:

• ¾ of North Americans own vehicles (from globalerm.ncsu.edu)  some more than one.
• Only 2% of people in India and 6% of people in China currently own at least one car.

• Populations in developed countries are aging whereas emerging markets have large working class populations
• Almost ⅔ of CEOs in developed countries are concerned that there are not enough skilled labourers to meet demand and over 90% of companies are changing the way they attract and retain employees (from globalerm.ncsu.edu).
• Governments will need to increase taxes to fund increased services/care for elderly.
• Companies will need to revise business models due to increases in pension costs.
• Workers will need to improve skills/learn new ones in order to stay competitive.

India's Role in the World

• One of the world’s most promising emerging markets
• The top nation for outsourcing
• Bangalore is known as the Silicon Valley of India because there are so many high-tech companies there.

• Immigrants can boost Canada’s potential for innovation.
• Immigrants are often motivated individuals willing to take risks in search of greater opportunities.
• Immigrant rates have been shown to increase trade and foreign direct investment levels with immigrants’ countries of origin.

Prime Minister Justin Trudeau has made clear the importance of innovation to the future of Canada and has increased immigration targets significantly.

• The UN predicts that urban populations will grow by 72% in 2050
• 96% of this urbanization is occurring in the developing world, mainly in African and Asian countries.
• There will be a greater demand for resources to build infrastructure, to educate populations, to provide security, and to promote employment.
• The National Intelligence Council estimates that by 2030, we’ll need 50% more energy, 40% more water, and 35% more food.

Positive Impacts:

• Urbanization poses many challenges but also presents numerous opportunities if managed effectively.
• Harvard University Professor of Economics Edward Glaser says, "Cities are the best path we know out of poverty. They are the best transformers of civilizations. But there are also demons that come with density."
• With innovation, it can provide solutions to today’s most significant global problems: poverty, inequality, climate change, and security.

• Advancements are creating new industries and revolutionizing old ones.
• Nanotechnology, Research and Development, mobile technology, robotics, artificial intelligence
• There are fewer barriers for virtual businesses, creating more competition.
• The ability to leverage and use technology will be a necessity rather than just an advantage.

Changing our Lives

• Technology has already changed your life in many ways. Just ask your parents how different things were when they were kids!

• The companies that innovate are ultimately the ones that will succeed in a rapidly changing world.
• Governments realize that entrepreneurship is the driver of economic success and prosperity and Canada is no exception: innovation is a key component of Canada’s Economic Action Plan.
• Reverse Innovation is when companies adopt ideas and market products in developing countries before marketing them in developed countries.

Prepaid Mobile Phones:

• These are pretty common in most countries today, but the idea really started when a company in South Africa developed the first prepary mobile network in the 1990s.
• Most European countries subsequently adopted the idea, and international standards allow the use of a prepay phone all over the world.

• Crowdsourcing allows a function once performed by employees to be outsourced to a network of people in the general public (Wired Magazine).
• People from all cultural, economic and educational backgrounds have collaborated on many ground-breaking technologies.
• Digital platforms are used by large companies to help create new products (Nike, Starbucks, Dell, and Best Buy to name a few).
• People trust the opinions of their peers more than traditional forms of advertising, and social media is growing at its fastest rate in developing countries.

Crowdfunding Change

• Crowdsourcing through mobile technology has the power to have a major impact on the developing world. In some areas, more people have access to mobile technology than electricity.
• For example, NextDrop, a project started by students at U.C. Berkeley, has transformed the way people access water in remote or poor regions. A text message is sent to alert residents when they should make the trek to the local water source.

• The environment is a global issue that is uniting our world and providing unique opportunities to businesses.
• There is a growing commitment to climate change legislation among governments and companies.
• Demand for organic food and products is growing, particularly in European countries.

Clean Technology

• Research by the UN Environment Program suggests that the global market for green trade could exceed $2 trillion U.S. by 2020.
• The Conference Board of Canada’s Global Commerce Centre says that Canada has a competitive edge in wind and solar power, energy efficient turbines, and waste management.

• Global interconnectedness means that financial markets are interconnected as well.
• The U.S. Financial Crisis was prompted by falling house prices and consumers defaulting on their mortgages when they were unable to keep up with payments.
• Banks foreclosed on homes, stopped lending and went out of business.
• Consumers stopped spending and companies lay off workers as they started losing money.
• Companies built factories in other countries where they could take advantage of cheaper, non-union labour.
• Research has shown that this crisis caused the greatest collapse in international trade since the Great Depression.
• Regions relying heavily on oil, or exports of goods and raw materials (e.g. Russia and the Middle East) saw large drops in GDP.

Watch this video from Duke University which discusses the global impact of the U.S. financial crisis:

The Impact on Canada

• Canada was not affected as drastically as other countries, thanks in large part to our sound banking system and quick political response.
• Although negative U.S. and global forces pushed us into a recessionary period, GDP and employment both began to recover in the third quarter of 2009.

• The 2008 economic crisis lead to a wave of protectionism that has counteracted the increased liberalization of trade.
• Donald Trump has vowed to "Make America Great Again"”" by reducing imports and focusing on rebuilding U.S. industries.
• This has lead to many Canadian businesses being shut out and could impact the future of our trade with the U.S..
• The U.K. leaving the EU has been called the “biggest act of protectionism in history.”

Could Trump’s Actions HELP Canada? (from Jim Warren, The Toronto Sun, January 2017)

• U.S. anti-immigration policies are pushing more motivated, high-quality immigrants to Canada. Trudeau has recommended increasing annual immigration from 300,000 to 450,000.
• A higher short-term U.S. dollar could make Canadian exports more affordable, even if Trump wants the final products assembled in the U.S.
• By withdrawing from TPP, the U.S. has made Canada the major entry point to the North American market for many products and services.
• While the U.S. is prioritizing bringing back jobs, Canada is focusing on creating higher value and higher income jobs.
• Canada’s political system is solid and predictable, in contrast to the currently erratic state of the U.S.

• The 9/11 Terrorist attacks caused travel across international borders to become slower and more complicated.
• Foreign goods became more expensive because of increased security and shipping costs.
• Increased global travel has caused the spread of disease epidemics (H1N1 flu and ebola), prompting the need for increased safety measures.

Product Standardization

• Increased trade brought an increasing number of tainted, contaminated and unsafe products.
• Many came from China, where the economy was developing quickly but the government had not yet developed a uniform set of standards.
• Compliance with international standards provides confidence to buyers and sellers along the supply chain that inputs are compatible and safe. (International Organization for Standardization).