Canada’s trade activities now extend far beyond the traditional exchange of goods and services across borders. With the expansion of global production networks, the evolution of information technology, and the rise of emerging economies, the dynamics of international trade have significantly transformed. In Canada, a frequently overlooked aspect of international trade is the flow of cross-border investments and the emergence of Canadian foreign affiliates.

Direct investment abroad entails establishing foreign business operations or acquiring foreign assets, fostering stable and enduring economic ties and enhancing international economic integration. Additionally, there is a complementary relationship between international trade and investment, as an international presence can often pave the way for future trade opportunities.

So, why should exporters consider Canadian direct investment abroad (CDIA)? At the firm level, investing abroad grants access to global markets, enabling companies to expand their international presence and business. CDIA also simplifies many international trade aspects for companies. For instance, in countries where exporters encounter import tariffs or face challenges in conducting international business, investing in foreign affiliates can help firms secure a foothold in the market.

Learn more here: