Study: Global production arrangements in Canada, 2009 and 2012
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The increased pace of globalization has brought about many structural changes in both the Canadian and world economies. One important change has been the increased prevalence of global value chains, which see the production processes of a given enterprise spread across many countries. In this study, results of the 2009 and 2012 Survey of Innovation and Business Strategy were used to analyze the prevalence of various global production arrangements in Canada.
Merchanting sales, which occur when a company purchases and subsequently sells a good abroad without it ever entering the company's resident economy, represented 2.0% of total economy wide sales in 2012 and 1.9% of those in 2009. Factoryless goods production, which occurs when a company outsources its entire production process abroad, but maintains ownership of the product's intellectual property, accounted for 1.5% of profits and 0.4% of assets in the total economy in 2012.
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The article "Global Production Arrangements in Canada – Initial Evidence from the Survey of Innovation and Business Strategy" is now available as part of the Income and Expenditure Accounts Technical Series (Catalogue number13-604-M) from the Browse by key resource module of our website under Publications.
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