Barbados structures result in increased global competitiveness, innovation and exports from Canada while reducing investment risk
TORONTO, June 16, 2014 /CNW/ - A recent study by Dr. Walid Hejazi, Professor of International Business, Rotman School of Management, demonstrates significant benefits to Canada's economy that results from the investment of Canadian businesses through Barbados offshore structures.
"There is strong evidence showing that when Canadian companies use Barbados as a conduit into the global economy, these companies are more competitive and earn higher profits internationally. Additionally, the increase in Canadian business activity abroad has been shown to enhance exports from Canada", said Dr. Walid Hejazi, Professor, Rotman School of Management. "Given that Canada lags international trends in global trade, it is critical that a greater percentage of Canadian business executives learn how to use offshore financial jurisdictions like Barbados to develop foreign operations and target international markets".
Dr. Hejazi's work demonstrates that the increase in exports that results from an increase in outward investment is larger when the Canadian company uses Barbados as a conduit when compared to direct investment in a foreign market. The beneficial effects of using Barbados are stronger when Canadian investments flow into emerging, high growth international markets – markets that are otherwise considered to be higher risk.
"Barbados is the most prominent offshore financial centre for Canadian companies and takes that position of leadership seriously – working to continuously enhance its relationship with Canada and to refine its international business offerings", said Senator the Hon. Darcy Boyce, Minister in the Office of the Prime Minister. "Barbados believes that all governments need to embrace relationships, structures and legislation that facilitate the development of highly productive economies – ones that are fully integrated into our shared global economy."
When used by Canadian companies, Barbados offshore structures provide many benefits to Canada including; the Canadian economy is more diversified and stable, Canadian companies are more profitable and productive, Canadian businesses access foreign markets more safely, employment in Canada increases, Canadian employees are paid higher salaries and Canada increases its net tax revenues.
About the Rotman School of Management
The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world's most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. For more information, visit www.rotman.utoronto.ca.
About Invest Barbados
Invest Barbados (IB) is an economic development agency of the Government of Barbados. IB is responsible for attracting, winning and sustaining investment for Barbados. The agency is also responsible for promoting, managing and developing the Barbados business brand.
Image with caption: "Rotman School of Management (CNW Group/Invest Barbados)". Image available at: http://photos.newswire.ca/images/download/20140616_C1208_PHOTO_EN_3658.jpg
Image with caption: "Invest Barbados (CNW Group/Invest Barbados)". Image available at: http://photos.newswire.ca/images/download/20140616_C1208_PHOTO_EN_3657.jpg
SOURCE: Invest Barbados
For further information: Media contacts: Ken McGuffin, Manager, Media Relations, Rotman School of Management, University of Toronto, Voice 416.946.3818, E-mail [email protected] or, for Invest Barbados: Rob Ireland, Mansfield Communications, 416-301-9585 (cell), [email protected]