Reference no: EM133093135

You have been asked to advise the president of a medium sized Canadian printing company about future developments in the industry. Your industry, which is mature and maybe sunset, is extremely competitive and is in the midst of consolidation with smaller firms being purchased by larger firms, many of which are based outside of Canada. In addition, Canadian print companies are establishing operations internationally to produce their products at a lower cost than in Canada. The president wants to know what the threat may be from foreign firms setting up in Canada, buying Canadian firms or whether your company should establish a production facility in a lower cost country in order to serve the Canadian market with your product. Please discuss reasons why governments (Canadian or other) would encourage or discourage foreign investment in this particular situation.