1.

Introduction
Canada is a North American country consisting of ten provinces and three territories. There are several industries in Canada. Under manufacturing industry aerospace and defense is one of them. Canadian aerospace and defense, space and defense firms, have built successful businesses in Canada for domestic and global markets. Canadian priorities encourage investment in knowledge-based businesses across the industrial spectrum, and a strong focus on innovation. Canada supports its aerospace and defense, space and defense industries through attractive investment fundamentals; leading-edge knowledge infrastructure; risk-sharing investments in technology development; commitment to investing in skills and research; and new business opportunities. Aerospace and defense is a vital and growing component of Canada's economy, a leading employer and contributor to research and development as well as the country's top exporter of advanced technology. Canada is one of only a handful of nations with a full range of aerospace and defense design and manufacturing capabilities. Although a number of companies are subsidiaries of foreign corporations, in many cases they have been assigned and capitalized on - mandates to manufacture for the world market. The industry represents the best in aircraft, electronics, avionics, communications, simulators, space technology, repair and overhaul, gas turbine engines and engineering.

2. Country Analysis
2.1 Country Profile:
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. Spanning over 9.9 million square kilometers, Canada is the world's second-largest country by total area, and its common border with the United States is the longest land border in the world. Canada is a federation under a system of parliamentary monarchy. They are ruled by Queen Elizabeth II of Great Britain, who is represented by the Governor General, a symbolic figure with no real authority. Executive authority lies with the prime minister, who is generally the leader of the political party with the greatest number of benches in the House of Commons. The prime minister in turn names his cabinet positions from the House (Enciso 2007, 104). Canada is divided into ten provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Farmer, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. There are also three territories: the Northwest, the Yukon, and Nunavut. Canada covers most of the North American continent with a surface area slightly greater than that of the United States. Canada shares an 8,893 kilometer border with the same, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west. Canada covers 41% of North America and has the second most surface area of any country on Earth .It has a varied topography and is rich in natural resources. Canada has huge reserves of oil and large quantities of fresh water sixty percent of the worlds lakes are in Canada. The southern part of the country boasts a robust agricultural sector. At that time most of the population was French but in the following decades thousands of British colonists immigrated to Canada from the British Islands and the American colonies. In 1873 a parliamentary federal Canada was proclaimed an government was established under the British crown.

independent dominion within the British Empire in December of 1931. The British crown became monarch of Canada. The British parliament granted direct authority to the Canadian parliament to run day-to-day operations, although important legal decisions were still made back in the United Kingdom. Canada finally obtained its constitutional autonomy in 1982.

2.2 Macro-environmental Factors:

A macro environmental analysis can be completed alone or in a brainstorming session, however doing some research before starting. To simplify the Macro Environment Analysis the following 6 broad heading will provide some structure, a good start is to list all of the trends you can think of or can find and indicate whether they will have a positive impact or negative impact on the size of your industry.

2.2.1 Economic Trends:

GDP output in August rose 0.3% following an upwardly revised 0.4% rise in July, originally reported as up 0.3%. All of the strength in the month was in the goods-producing side of the economy where activity rose 0.9% following a revised 0.7% gain in July (was 0.4%). These increases along with a 0.6% rise in June have more than offset the 1.7% drop in goodsproduction that occurred in May where various factors including wildfires in Northern Alberta weighed on the mining sector. Service-producing industries were unchanged in August though this followed an upwardly revised 0.3% gain in July (0.2% previously). The strength in goods-producing industries largely reflected a 3.3% jump in mining output. This in part reflected a 2.6% jump in oil and gas extraction though the mining support component soared 16.5% in the month reflecting increased drilling activity. Manufacturing fell 0.4% in the month despite motor vehicle production rising a robust 3.9%. The offset was mainly in various nondurables. Components declining in the month including: non-metallic mineral products, wood products, chemicals and paper products. The latter three components all showed sizeable gains in July. In terms of the other major goods producing industries, utilities fell 0.8% after a 1.4% jump in July while construction was up a modest 0.1%. Within-service-producing industries, financial services managed to rise 0.6%. However, this was offset by sizeable declines in wholesale trade (1.4%) and the arts and entertainment component (1.4%). The former followed a 1.8% jump in July.

Canadian employment fell by 54,000 in October. The labor force contracted by 13,800 in October and the unemployment rate rose to 7.3% from 7.1% in September. The October report showed a decline in employment in the goods producing industries where the number of employed fell by 51,900. Construction (-20,100) and manufacturing (-48,400) jobs were
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cut in the month. In the services side of the economy, employment dipped by 2,000. All jobs lost were fulltime with 71,700 positions cut. Part-time employment rose by 17,700. On net, full-time employment is still up by 198,200 in 2011. The public sector shed 3,800 positions. Private sector employment reported 32,000 jobs cuts.

Still, the declines over the three month period only reversed 71% of July's 94,500 surge. The number of self-employed individuals was down by 18,100 following the 38,900 increase in September. The year-over-year gain in average hourly wages for permanent workers slipped to 1.3%, a tad slower than September's 1.6% pace and still well below the average 2.3% in the first half of the year.

2.2.2 Political and Legal Factors

The political-legal dimension of the general environment also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time. The legal environment facing organizations is becoming more complex and affecting businesses more directly. It has become increasingly difficult for businesses to take action without encountering a law, regulation, or legal problem. A very brief listing of significant laws that affect business would include legislation in the areas of consumerism, employee relations, the environment, and competitive practices. Many of the laws also have an associated regulatory agency. Powerful U.S. regulatory agencies include the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), and the Securities and Exchange Commission (SEC). Estimates of the cost of compliance vary widely, but could well exceed $100 billion annually. Many of these costs are passed to consumers. However, costs of legal expenses and settlements may not be incurred for years and are not likely to be paid by consumers of the product or owners of the company when the violation occurred. Still, potential legal action often results in higher prices for consumers and a more conservative attitude by business executives.

2.2.3 Technological Factors:

Technology is another aspect of the environment a firm should consider in developing strategic plans. Changing technology may affect the demand for a firm's products and services, its production processes, and raw materials. Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry. Technological innovation continues to move at an increasingly rapid rate. Technology can change the lifestyle and buying patterns of consumers. Recent developments in the field of microcomputers have dramatically expanded the potential customer base and created innumerable opportunities for businesses to engage in business via Internet. Whereas computers were traditionally used only by large organizations to handle data processing needs, personal computers are commonly used by smaller firms and individuals for uses not even imagined fifteen years ago. Similarly, new developments in technology led to a reduction in prices for computers and expanded the potential market. Lower prices allow computers to be marketed to the general public rather than to business, scientific, and professional usersthe initial market. Technology may also cause certain products to be removed from the market. Asbestos-related illnesses have severely limited asbestos as a resource used in heat-sensitive products such as hair dryers. Further, a number of chemicals that have been commonly used by farmers to control insects or plants are prohibited from use or require licensure as a consequence of those chemicals appearing in the food chain.

2.3

Goods Are Traded:

Although Canada is heavily involved in international trade, the US is by far its largest and most important trade partner. In 2009, 75.02 percent of Canadian exports were directed to the US, while 51.1 percent of imports came from the US. Bilateral trade between Canada and the US increased by 52 percent between 1989 (when the US-Canada Free Trade Agreement (FTA) came into effect) and 1994 (when the North American Free Trade Agreement (NAFTA) was implemented). Although NAFTA dramatically improved US-Canada trade relations, disputes still remain that pertain to intellectual property rights, softwood lumber, beef, tomatoes and other agricultural products.

Canadas Imported and Exported goods Indicators and statistics at a Glance (2010):
Total value of Exports: US$406.8 billion Primary exports - commodities: motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum Primary exports partners: US (75.02 Total values of exports: US$406.8 billion Primary exports - commodities: motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum Primary exports partners: US (75.02 percent), UK (3.37 percent), China (3.09 percent) Total value of Imports: US$406.4 billion Primary imports - commodities: machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods, Agricultural and fishing products Fruits and vegetables, Other agricultural and fishing products, Energy products, Crude petroleum, Forestry products, Industrial goods and materials, Metals and metal ores, Chemicals and plastics, Machinery and equipment, Primary imports partners: US (51.1 percent), China (10.88 percent), Mexico (4.56 percent)

Statistical datas are given in Appendix through Appendix Figure 1: Revenues from sales of environmental goods and services, by industry Figure 2: Imports of goods on a balance-of-payments basis, by product Figure 3: Exports of goods on a balance-of-payments basis, by product Figure 4: Imports, exports and trade balance of goods on a balance-of-payments basis, by Country or country group.

2.4

Country SOWT analysis according to economic condition:

SWOT analysis is a method for analyzing a business, its resources, and its environment. SWOT is commonly used as part of strategic planning and looks at:
1. 2. 3. 4.

Internal strengths Internal weaknesses Opportunities in the external environment Threats in the external environment
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SWOT can help management in a business discover:

1. 2. 3. 4.

What the business does better than the competition What competitors do better than the business Whether the business is making the most of the opportunities available How a business should respond to changes in its external environment
STRENGTHS WEAKNESSES

- formidable natural boundaries/barriers - strong alliances - planned security enhancements - stable parliamentary democracy - sound financial system - low corruption - strong GDP - life expectancy 80 years - 99% literacy rate - rich in natural resources - no internal or external armed conflicts - low crime rate THREATS - terrorism - WMD - natural disasters - transnational organized crime - pandemics - critical infrastructure vulnerabilities - linked to US in eyes of terrorists - linked to economic fallout of WMD attack on the US - climate change in some regions

- lingering threat of Quebec secession - small population & budget - vulnerable to US pollution spillovers - world-wide financial crisis supplementary - difficult control of territory - need for immigrants - aging population - little leadership in the world-wide scene

OPPORTUNITIES - free ride off US security enhancements - increasing global leadership - bridge transatlantic gap; energize NATO - strong economic future (oil, fresh water) - flexibility in national approach

Figure 1: Canada SWOT analysis

3. Industry Analysis:
On the base of goods and services Canada include four types of industries:

Manufacturing Industries Resource Industries Service Industries and Consumer Products

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Technologies

Above the sectors mentioned, there several categories in manufacturing industry. The categories are listed below Manufacturing Industries:

Aerospace and defense Apparel Assistive devices Automotive Boats, recreational Chemicals Commercial printing Footwear Forest industries Fuel cells (see Hydrogen and fuel cells) Furniture Giftware and crafts

Household appliances, major Hydrogen and fuel cells Information and communications technologies Medical devices Oil and gas Pharmaceuticals Primary metals Rubber Shipbuilding and industrial marine Sporting goods Textiles

3.1 Canadian Aerospace and Defense industry profile:

Canadian aerospace and defense companies offer aerospace and defense products and services to Canada and the world. Home to leading aviation and space companies, Canada is a world leader in producing regional aircraft, avionics, business jets, commercial helicopters, aircraft engines, flight simulation, landing gear, and space systems and offers extensive Aircraft Maintenance Repair and Overhaul expertise. In addition, leading aerospace and defense companies from around the world choose to perform their manufacturing and research and development activities in Canada. Aerospace Industries Products and services: i.
ii.

Aircraft Avionics & Electronics - From airborne radar to redoes. Aircraft Engines & Components - From auxiliary power units to turbo shaft engines. Aircraft Structures, Components & Materials - From actuators to window glazing and lenses.
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iii.

iv.

Aircraft Systems & Components - From aerial application systems and components to wing strike protection systems. Aircraft, Fixed & Rotary Wing - From amphibious aircraft to unmanned vehicles. Airport Equipment - From airport information systems to passenger handling systems and equipment. Composites & Plastics - From composite bonding to plastic components. Computer Systems & Equipment - From computer equipment to real-time 3D graphical displays. Consulting Services - From airport planning consultants to tax services. Defense Security Systems & Electronics - From C3I to weapons systems Aerospace and defense Services - From aerial application and fire fighting to wind tunnel testing. Air Traffic Control & Management Systems & Equipment - From air navigation systems and equipment to radar systems.

v. vi.

vii. viii.

ix. x.

xi. xii.

Aerospace and defense Industry's Structure

In general, the Canadian Aerospace and defense industry includes:
i. ii. iii. iv. v. vi. vii. viii.

aircraft and engine manufacturing components and parts manufacturing aircraft maintenance airframe repair and overhaul avionics electronics and information systems precise machining and metal fabrication composites and exotic metals component production specialty coatings

ix. x. xi. xii. xiii.

space satellites simulation training testing consulting services

Aerospace and defense also includes airlines, military, civil aviation and other buyers and users of aerospace and defense goods and services.

3.2

Aerospace and Defense Industry Statistics:

Canada is an aerospace and defense world leader. The Canadian aerospace and defense industry comprises more than 400 firms located in every region of the country. Collectively, these aerospace and defense companies employ more than 80,000 Canadians. Since 1990, Canadian aerospace and defense industry sales have more than doubled, reaching $23.6 billion in 2008. In addition, the Canadian aerospace and defense industry is the countrys leading advanced technology exporter Canada exports more than 80 per cent of its aerospace and defense output. Aerospace and defense companies in Canada are global market leaders in regional commercial helicopters, aircraft, avionics, business jets, aircraft engines, flight simulation, landing gear, and space systems.

Figure: Aerospace Industrial statistics

Services offered by Aerospace industry of Canada:

Airframe structural assemblies Wing structure assemblies Power conversion and distribution systems Integrated electronic controls Environmental conditioning systems
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Air traffic control and management systems Aviation communications systems

Canadian aerospace and defense firms offer innovative solutions backed by sustained investment in research and development, and a highly skilled workforce. As a result, Canadas aerospace and defense industry is robust and dynamic, with a long history of innovation and success throughout the world.

3.3

Canadas competitiveness:

The evaluation of the aerospace and defense industry in other leading nations is critical in understanding the current position of the Canadian aerospace and defense industry globally. Some of the key developed markets in the global aerospace and defense industry are: i. ii. iii. iv. v. France; Germany; US; UK; and Japan.

There is an additional group of nations that are becoming increasingly relevant. It is anticipated that many of these developing nations will be heavily supported by their governments in the hopes of creating a strong domestic aerospace and defense industry. These countries are: i. ii. iii. iv. Brazil; China; India; and Russia.

The countries listed above are chosen based on three criteria: 1. Representative mix of the different types of aerospace and defense markets; 2. Global importance of the countrys aerospace and defense industry; and 3. Availability and consistency of relevant industry data.
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Canadas aerospace and defense industry plays a critical role in the domestic Canadian economy. Canadas aerospace and defense industry ranks among the top 10 globally by almost every measure. For example, Table 17 lists the top 5 countries in terms of revenues generated from aerospace and defense manufacturing and Table 18 lists the top 5 countries in terms of aerospace and defense employment. Once normalized by GDP, Canada ranks second among the top five countries in terms of aerospace and defense revenue. A similar story is seen in employment once one normalizes by each countrys population with Canada also ranking second among the top five countries in terms of aerospace and defense manufacturing employment. This analysis shows that Canada relies more heavily on the aerospace and defense industry for revenue and employment than most other countries.

3.4

Comparing among manufacturing industries

There are several industries under manufacturing sector. Aerospace is one of the largest industries. Comparing to other industry aerospace standing is remarkable, which we can see in below statistics.

Manufacturing Sector Agriculture, Forestry, Fishing and Hunting Mining and Oil and Gas Extraction Utilities Construction Aerospace

GDP (millions of chained 2002 dollars) 2001 2010 24,674 51,236 27,384 45,542 50,084 26,357 53,930 29,845 63,856 22,740

Compound annual growth rate 2001-2010 0.7% 0.5% 0.9% 2.9% -1.2%

% Change 2009-2010 0.3% 4.8% -0.2% 6.6% 5.7%

Figure: Comparing Manufacturing Industries

3.5 Comparison among aerospace Businesses:

Research and development spending by the aerospace and defense sector also plays a critical role in the Canadian economy; three aerospace and defense companies Pratt & Whitney Canada, Bombardier, and
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CAE (Canadian Aviation Electronics Ltd.)

hhj

Figure: Aerospace business comparison

The aerospace and defense industry generates a significant fraction of Canadas total exports at just under 4% in 2008.

Finally, the importance of Canadas aerospace and defense industry is reflected in Canadas reputation as a leader in other countries.

3.6

Regional Economic Integration:

Regional Economic Integration: agreements between groups of countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other. By entering into regional agreements groups of countries aim to reduce trade barriers more rapidly than can be achieved under the auspices of the WTO. The specter of the EU and NAFTA turning into economic fortress that shut out foreign producers with high tariff barriers is particularly worrisome to those who believe in the value of unrestricted free trade

World Trade Organization

Agreement Partners and Link to Detail World Trade Organization (WTO) "In Force" Date / Status 01-Jan-1995

Free Trade Agreements

Agreement Partners and Link to Detail North American Free Trade Agreement (NAFTA) Canada - U.S. Free Trade Agreement (CUSFTA) *now
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"In Force" Date / Status 01-Jan-1994 01-Jan-1989

NAFTA Canada-Panama Free Trade Agreement (FTA) Canada - Jordan Free Trade Agreement (FTA) Canada - Colombia Free Trade Agreement Canada - Peru Free Trade Agreement Canada - European Free Trade Association (EFTA) Canada - Costa Rica Free Trade Agreement (CCRFTA) Canada - Chile Free Trade Agreement (CCFTA) Canada - Israel Free Trade Agreement (CIFTA)

(superseded by NAFTA, which includes Mexico) Signed 14-May-2010 Signed 28-June-2009 Signed 21-Nov-2008 01-Aug-2009 1-Jul-2009 01-Nov-2002 05-Jul-1997 01-Jan-1997

Foreign Investment Promotion and Protection (FIPAs)

Agreement Partners and Link to Detail "In Force" Date / Status 20-Jun-2007 30-Jan-2001 29-Sep-1999 19-Jun-1999 02-Jun-1999 Signed 31-May-1999 29-Mar-1999 24-Sep-1998 13-Feb-1998 28-Jan-1998 03-Nov-1997 06-Jun-1997 11-Feb-1997

Canada - Peru Foreign Investment Promotion and Protection (FIPA) Canada - Croatia Foreign Investment Promotion and Protection (FIPA) Canada - Costa Rica Foreign Investment Promotion and Protection (FIPA) Canada - Lebanon Foreign Investment Promotion and Protection (FIPA) Canada - Uruguay Foreign Investment Promotion and Protection (FIPA) Canada - El Salvador Foreign Investment Promotion and Protection (FIPA) Canada - Armenia Foreign Investment Promotion and Protection (FIPA) Canada - Thailand Foreign Investment Promotion and Protection (FIPA) Canada - Panama Foreign Investment Promotion and Protection (FIPA) Canada - Venezuela Foreign Investment Promotion and Protection (FIPA) Canada - Egypt Foreign Investment Promotion and Protection (FIPA) Canada - Ecuador Foreign Investment Promotion and Protection (FIPA) Canada - Romania Foreign Investment Promotion and Protection (FIPA)
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Canada - Barbados Foreign Investment Promotion and Protection (FIPA) Canada - Philippines Foreign Investment Promotion and Protection (FIPA) Canada - Trinidad and Tobago Foreign Investment Promotion and Protection (FIPA)

17-Jan-1997 13-Nov-1996 08-Jul-1996

3.7

Trade Regulations of Aerospace Industries:

3.7.1 Trade Policy and Economy

Canada's liberal trade regime has facilitated the economy's successful adjustment to a number of external shocks, and helps explain Canada's good economic performance during the last several years. However, productivity growth remains relatively slow, compared to other developed economies. Certain trade barriers still persist in some agricultural activities. In the second quarter of 2007 gross domestic product grew 3.4%, down from 3.9% in the first quarter but more than double the average pace of growth in the last three quarters of 2006. Domestic demand growth remained solid in the second quarter, with 4.3% growth compared to 2.8% in the previous quarter. Consumer spending, residential investment and business fixed investment all showed healthy gains. In August, the unemployment rate was 6% - the lowest level in the past three decades.

3.7.2 Import Controls and Licensing

Most Aerospace goods can enter the Canada market without import restrictions. However, certain commodities are prohibited from importation under the provisions of the Canadian Customs Tariff regulations, while others are regulated under the Export and Import Permits Act. The Export and Import Controls Bureau (TPI) is responsible for administering the Export and Import Permits Act. The import Controls List comprises textiles and clothing, agricultural products, steel products and weapons; whereas the Export Controls List contains agricultural products, refined sugar, peanut butter, textiles and clothing, weapons and nuclear energy materials and technology, dangerous goods etc.
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3.7.3 Product Standards and Requirements

The National Standards System is the system for developing, promoting, and implementing standards in Canada and the Aerospace industries maintaining standard in all types of products to provide best to their customers. If certification of an Aerospace and Defense product is required, it should be obtained before the goods are imported into Canada. Additional and requirements may be imposed at the provincial level. The contact point in Canada concerning product standards and requirements is the Standards Council of Canada.

3.7.4 Marking and Labeling

Country of Origin marking is required on many categories of imported merchandise. Goods with no proper country of origin indication cannot be released from Customs until they are suitably marked. Aerospace requires bilingual labeling in English and French for most products, showing product identity declaration in common generic name, and net quantity declaration expressed in metric units of weight volume or numerical count, as applicable. Dealer's name and place of business must also appear on the labels.

3.7.5 Customs Tariff and Tax

Canada adopts the Harmonized System (HS) of the Tariff Schedules. All commercial imports are subject to customs duty and the goods and services tax (GST) unless exempted. Duties are assessed on the transaction value (the price actually paid or payable for the goods), including commission, brokerage, packing, royalties and transportation to the Canada point. Hong Kong and China origin goods are eligible for the preferential tariffs under the Canadian General Preferential Tariff Scheme. A provincial sales tax is assessed on all imports to British Columbia (7.5% of the duty paid value), Manitoba (7%), Prince Edward Island (10%), Quebec (7.5%) and Saskatchewan (6%). In addition, a broad-based value added sale tax, known as the goods and services tax is levied at 7%. In the three Atlantic Provinces (Newfoundland, New Brunswick and Nova Scotia), these taxes were combined to form a harmonized sales tax at a standard rate of 15% for all goods and services. Excise taxes are also charged on automobiles, automobile air-conditioners, and some petroleum products. Under the Special Import Measures Act, the Government imposes countervailing duties on imported goods that cause injury to Canadian industry through subsidies in the country of
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origin and anti-dumping duties on goods at prices that are less than their selling price in the country of origin. Recently Canada also the Aerospace industry imposes anti-dumping duties on several imports from the Chinese mainland including, carbon steel fasteners, laminated flooring, wood slats, hot rolled carbon steel and high-strength low alloy steel plate, hot rolled carbon and alloy steel sheet and strip etc. The Canada Revenue Agency can assist traders to determine the proper tariff classification, value for duty, origin, and the duty and tax rates that apply, and will provide written rulings on request.

3.7.6 Documentary Requirements

A complete documentary package should be presented to the Customs when the imported goods arrive at the country's border. The package includes: 1. Cargo Control Document prepared by the carrier based on the shipper's information; 2. 3. Commercial Invoice indicating the buyer, seller, country of origin, price and detailed description of the goods with quantity and unit price; Import permits, health certificates and examinations as required by other Federal government departments: e.g. the Canadian Food Inspection Agency examines and gives permits for some meat products, and all restricted or controlled drugs require an import permit from Health Canada; the Department of Foreign Affairs and International Trade requires import permits for textiles and clothing; 4. Certificates of Origin for claiming lower customs duty rates for goods from USA and Mexico (under North American Free Trade Agreement), Israel (under Canada-Israel Free Trade Agreement) or Chile (under Canada-Chile Free Trade Agreement) or Form A Certificate of Origin applies to goods covered by the Generalized System of Preferences; 5. Bill of Lading to satisfy the direct shipment condition of preferential tariff treatment goods must be shipped on a through bill of lading from the country of origin to a consignee in Canada; 6. Other documents include Insurance Certificate, Packing List, Pre-shipment Inspection and pro-forma Invoice as requested.

3.7.7

Consumer Protection

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The Federal Hazardous Products Act prohibits certain items as being too dangerous to permit their usage. These goods cannot be imported, sold, or advertised in Canada. The manner of selling, advertising, labeling and packaging of a wide range of products likely to be in danger to the health or safety of the public, including any products or substance that is poisonous, toxic, flammable, explosive or corrosive is also regulated. These items can be imported, sold or advertised only as stated under regulations.

3.8

International HRM Policies

With the advent of globalization, organizations - big or small have ceased to be local, they have become global. This has increased the workforce diversity and cultural sensitivities have emerged like never before. All this led to the development of Global Human Resource Management. Even those organizations who consider themselves immune to transactions across geographical boundaries are connected to the wider network globally. They are in one way or the other dependent upon organizations that may even not have heard about. There is interdependence between organizations in various areas and functions. The preliminary function of global Human Resource Management is that the organization carries a local appeal in the host country despite maintaining an international feel. To exemplify, any multinational / international company would not like to be called as local, however the same wants a domestic touch in the host country and there lies the challenge. Enumerate the objectives of global HRM as follows: 1. Create a local appeal without compromising upon the global identity. 2. Generating awareness of cross cultural sensitivities among managers globally and hiring of staff across geographic boundaries. 3. Training upon cultures and sensitivities of the host country. The strategic role of Human resources Management in such a scenario is to ensure that HRM policies are in tandem with and in support of the firms strategy, structure and controls.

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Specifically, when we talk of structures and controls the following become worth mentioning in the context of Global HRM. 1. Decision Making: There is a certain degree of centralization of operating decision making. Compare this to the International strategy, the core competencies are centralized and the rest are decentralized. 2. Co-ordination: A high degree of coordination is required in wake of the cross cultural sensitivities. There is in addition also a high need for cultural control. 3. Integrating Mechanisms: Many integrating mechanisms operate simultaneously.

Global HRM Policy: Here also the role is no different hiring individuals with requisite skills to do a particular job. The challenge here is developing tools to promote a corporate culture that is almost the same everywhere except that the local sensitivities are taken care of. Also, the deciding upon the top management or key positions gets very tricky. Whether to choose a local from the host country for a key position or deploy one from the headquarters assumes importance; and finally whether or not to have a uniform hiring policy globally remains a big challenge. Nevertheless an organization can choose to hire according to any of the staffing policies mentioned below: 1. Ethnocentric: Here the Key management positions are filled by the parent country individuals. 2. Polycentric: In polycentric staffing policy the host country nationals manage subsidiaries whereas the headquarter positions are held by the parent company nationals. 3. Geocentric: In this staffing policy the best and the most competent individuals hold key positions irrespective of the nationalities. Geocentric staffing policy it seems is the best when it comes to Global HRM. The human resources are deployed productively and it also helps build a strong cultural and informal management network. The flip side is that human resources become a bit expensive when hired on a geocentric basis. Besides the national immigration policies may limit implementation.
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Global HRM therefore is a very challenging front in HRM. If one is able to strike the right chord in designing structures and controls, the job is half done. Subsidiaries are held together by global HRM, different subsidiaries can function operate coherently only when it is enabled by efficient structures and controls.

4. Conclusion
This report provides an overview of the current environment of the global aerospace and defense industry, as well as provides a profile of the Canadian aerospace and defense industry and the future trends predicted by Canadian aerospace and defense companies. The
aerospace and defense industry is very capital intensive, and requires substantial research and development (R&D) activities. In 2009 aerospace and defense companies invested an estimated total of C$1.9 billion. The R&D component is the largest type of investment, constituting 72.7% of total investment, with the remaining 27.3% being spent on property, plant, and equipment (PPE). The Government of Canada has various programs designed to fund aerospace and defense R&D activities, providing funding for an estimated 33.8% of the total aerospace and defense R&D spend in Canada in 2009. The majority of survey respondents indicate that this level of governmental funding is not sufficient when compared to the funding provided to aerospace and defense companies from foreign governments. This finding is especially pronounced among survey respondents based in Quebec and B.C., and less so from survey respondents based in Ontario and Manitoba. The role of government in the aerospace and defense industry is widely recognized as being of strategic importance. A 2009 study by aerospace and defense consultant, Aero Strategy LLC, suggests that another developing trend globally, and one with implications for Canada, is the growing collaboration between aerospace and defense companies and foreign governments to create high value aerospace and defense clusters within their respective countries.142 This means that global competition faced by the Canadian aerospace and defense industry will continue to increase due to foreign competitors collaboration with their own domestic governments.

In addition, survey respondents also indicate that they expect factors such as the general economic recovery, the health of airlines, the price of fuel and technological innovations, and
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the level of military activity worldwide, to drive demand for Canadian aerospace and defense products and services over the next three years. Similarly, survey respondents note that factors such as access to low cost global supply chains, access to qualified labor and capital, increased foreign competition and government funding will drive the supply of Canadian aerospace and defense products and services over the next three years.

5. Recommendation
The study discussed about the Canada and its Aerospace Industry based on the information from different sources. From the information and statistics we have found that Canada has a large impact on world export import industry. The recommendation for the Manufacturing Industries of Canada, in concert with other departments of the Canadian Government, formulate and implement a firm and clear regulatory and policy framework to ensure the continuity and sustainability of this national resource, and to increase its impact on Canada's economic, social and strategic well-being. The products which are harmful in Aerospace industry, those goods cannot be imported, sold, or advertising in for in Canada, including any products or substance that is poisonous, toxic, flammable, explosive or corrosive is also regulated by the Govt. These items can be imported, sold or advertised only as stated under regulations. The Canadian Industry should increase its efforts to promote the importance of Canadas Aerospace policy and programs to Canadians, and suggests how this might be done. The Aerospace Industry polices Canadian Govt. should take to promote In the freedom of fair and open trade between sovereign nations, In the freedom and open exchange of thoughts and cultural ideas They should increase their efficiency level. The movement of the factors of Industry should be flexible. They should increase their productivity level both for civil and military sector.
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 They should increase their supplier channel in other nations so that their products can be available. In the freedom of development of scientific knowledge, technical know-how and intellectual property. In the freedom of development and exchange of information on issues of global concern, and In the freedom to democratically elect governments to uphold our Canadian values

6. Bibliography/ References
We collected our dates from different types of book on journals, news papers, website of Aerospace and defense and also from magazines. The websites we searched data from are: www.wikipedia.org www.yahoosearch.com www.googlesearch.com http://en.wikipedia.org/wiki/Canada http://www.ic.gc.ca/eic/site/ad-ad.nsf/eng/home http://www.manta.com/world/North+America/Canada/aerospace and defense--G0/ http://www.thecanadianencyclopedia.com/index.cfm? PgNm=TCE&Params=a1ARTA0000051 http://www.aiac.ca/resources-and-publications/ http://www.aiac.ca/about/ http://www.aiac.ca/resources-and-publications/fmp/ http://www.referenceforbusiness.com/management/Log-Mar/MacroenvironmentalForces.html#ixzz1eeI2FuWZ

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