In today's interconnected global economy, Canadian businesses must consider expanding beyond domestic borders to remain competitive and foster growth. The World Trade Organization projects a 3.3% increase in global merchandise trade volume for 2025, highlighting ample opportunities for international expansion.
Mark Agnew, Senior Vice-President of Policy and Government Relations at the Canadian Chamber of Commerce, has emphasized the importance of such expansion. In his opening remarks to the House of Commons Standing Committee on International Trade on April 27, 2022, Agnew stated:
"We have a number of initiatives ongoing in the region that hold potential for opening new market access opportunities." source
Operating as multinationals enables Canadian companies to access diverse customer bases, achieve cost efficiencies, and mitigate risks associated with local economic fluctuations. A notable example is Shopify, whose global expansion has resulted in over half of its revenue originating from international markets.
Moreover, a 2023 report by Export Development Canada (EDC) indicates that businesses engaged in international markets experience accelerated growth, heightened innovation, and increased productivity. Despite these benefits, only 12% of Canadian small and medium-sized enterprises currently export goods or services.
Mary Ng, Canada's Minister of International Trade, Export Promotion, Small Business and Economic Development, advocates for diversification beyond traditional markets. In an interview, she highlighted the importance of exploring opportunities in regions such as Asia, Europe, and Africa:
"We are at the table with the countries in Southeast Asia... I took a very large delegation of Canadian businesses to the Philippines in December, to Indonesia, to markets like Vietnam, Malaysia, Japan, Korea." source
In a landscape of shifting economic power and evolving trade policies, Canadian businesses that adopt multinational strategies are better positioned to lead and innovate on the global stage.
