COUNTRY ANALYSIS

Country Analysis

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Summary

The report analyses Canada and its political, economic, and social factors that contributes towards the operations of one of the famous Australian mining company in the world i.e. BHP Billiton. The report suggests that Canada has retained its position as one of the most cost-effective places to do business among the advanced economies. Its geographical proximity and trade and investment relations with the US make it an attractive destination for investment. Traditionally, its machinery and equipments industry has served the manufacturing sector. Canada has an advantage in terms of meeting requirements for technologically advanced goods in the aerospace industry. However, with respect to R&D, the Canadian government's policies are less favorable than those of other nations. Canada's progress in technological development has not reflected its potential. Total expenditure on R&D as a percentage of GDP stands at around 2%. It is a recognized fact that Canada faces an "innovation gap," as the country does not fare well in terms of R&D spending as a percentage of GDP. In 2010, it received only 5,513 patents from the US Patent and Trademark Office, compared to the 121,179 patents received by the US.

Table of Contents

Summary2

Overview of Company4

Overview of Country4

Political Analysis6

Economic Analysis6

Social Analysis7

References8

Country Analysis

Overview of Company

BHP Billiton Group (BHP Billiton) is a diversified natural resources group engaged in mineral exploration and production. The group's primary focus areas include oil and gas, aluminum, copper, nickel, iron ore, manganese, metallurgical coal, and energy coal, with additional exposures to uranium, gold, zinc, lead, silver, and diamonds. BHP Billiton comprises BHP Billiton Limited and BHP Billiton Plc. The group has a global presence with more than 100 operations in 25 countries. It is headquartered in Melbourne, Australia and employs about 40,800 people (Summary Review 2011. BHP Billiton).

The group recorded revenues of $71,739 million in the financial year ended June 2011 (FY2011), an increase of 35.9% over FY2010. The operating profit of the group was $31,816 million in FY2011, an increase of 58.8% over FY2010. The net profit was $23,648 million in FY2011, an increase of 85.9% over FY2010 (Summary Review 2011. BHP Billiton).

Overview of Country

Canada is a developed country and an active member of the G8 group. The country is moving away from its colonial past, but the British monarch remains the titular head. It has historically been a strong supporter of the US in international politics; indeed, Canada has moved closer to the US economically as well as culturally because of its geographical location and the mutually beneficial political and economic relationship between the countries. The Canadian political arena is dominated by the Conservative, New Democratic, and Liberal parties (Howlett, & Ramesh. 1992). Although the Conservative government came to power in 2006 as a minority government after 12 years of Liberal rule, it gained a majority in the 2011 elections, removing all threat of political instability. Federal-provincial relations continue to pose a challenge. A lack of uniform policies in provinces has also led to growing disparity across provinces (Courtney & Smith, ...