Canandian book publishing industry
As the manager of this business, it is my responsibility to create a strategy that will help Spaulding books and other small Canadian book publishing companies increase profitability. Spaulding's profit margins are low, there is little capacity for expansion in the Canadian market and they are undercapitalized which makes this company a very unappealing investment for other company's to acquire. Canada's foreign ownership restrictions won't allow a foreign firm to acquire more than 25% of a Canadian publishing house. Initially these restrictions were put in place to protect small publishing houses from competition with the huge foreign conglomerates, but in fact these restrictions made it virtually impossible for Spaulding to recoup his individual investment. So without foreign competition small publishing houses will never get back the personal investment they put in to start the company. The industry right now would be virtually non-existent without the help of government subsidies, loans and grant programs. The book publishing industry has to reach a point where it does not have to rely so heavily on government aid. Freer trade allows companies greater opportunities to eliminate issues of economies-of-scale by serving
They also want competition overseas from other companies, as well as to maintain employment for Canadians who work in these industries (lec. However, the long-term impact would be severe and one that the Canadian book publishing industry may never recover from. Removing the restrictions is a bad idea, it's the best short-term solution for small book houses to recoup their investment but it will also destroy everything they have done in the past 30 years to ensure the survival of the Canadian book publishing industry. Without our own culture and history, we will become further Americanized and their will be nothing distinct, or significant about the Canadian way of life. ahlamI think the government of Canada should protect this industry because if it doesn't who will foster and encourage the publication of new Canadian writers and who will ensure continued protection for older Canadian works of literature. If Spaulding received tax credits for investors buying share in his company, then he might be able to make a changes to his company that will allow advances in technology so that his company has some chance of competing in the industry. Once Spaulding, and other small publishing houses make the technological changes that are crucial to achieving economies of scale, then they won't need as much if any more subsidies from the government. I think it's crucial for Canadians to support other Canadian works an industries because if we don't what will we teach the younger generations? We can't let it come to a point where Americans are our history. The only way for Canada's book publishing industry to reach economies of scale is for companies to have access to unlimited resources. Every government in every country has preference for their own domestic industries and they want to foster those industries so that they may compete with other countries. This strategy will help get the book publishing industry out of its current bind. This company has a lack of domestic capacity, low gains from economies of scale, and trade restrictions that make FDI an attractive alternative to expand sales.
Common topics in this essay:
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international trade,
tax incentives,
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Acceptance Essays
