Introduction

Foreign Investment: "Flows of capital from one nation to another in exchange for significant ownership stakes in domestic companies or other assets. Foreign investment typically works both ways, especially between countries of relatively equal economic stature."-Investopedia.

The move towards globalization has opened trading and foreign investment doors for many countries. Increasing foreign investment causes an outward shift of the demand curve as there are more people to buy goods at every price. Altogether, getting foreign companies to invest in Canada is great for business. The biggest Canadian trading partners include the United States, the U.K. and Chia. Diversifying trade increases foreign investment which increases demand for Canadian goods. With much of Canadian wealth coming from its natural resources sector, finding foreign investors is extremely lucrative and important. Canada boasts political stability and a wide range of consumers making it an increasingly popular destination for foreign investments.

SOURCE: http://www.investopedia.com/terms/f/foreign-investment.asp#axzz1jYaVsFeG AND http://www.statcan.gc.ca/daily-quotidien/110415/dq110415a-eng.htm

Canada can withstand 'buffeting' from Greek crisis: Flaherty 46

BRYN WEESE, Parliamentary Bureau | QMI Agency
OTTAWA - Finance Minister Jim Flaherty says Canada will be "buffeted" if debt-laden Greece goes bankrupt, but the country is well-prepared to survive any economic storm.

On Sunday, Greek officials admitted the country only has enough cash to see it through this month, and international investors are threatening to withhold a bailout cheque of eight billion euros because Greece has routinely failed to meet austerity measures agreed to in the bailout negotiations.

In an effort to qualify for the handout, Greece introduced a new property tax over the weekend to raise revenues, but markets all over the world still tumbled Monday amid growing fears of sovereign debt defaults in Europe. Italy and Spain are also struggling to make ends meet and are swamped with huge deficits and debt.

Flaherty, though, is confident Canada can withstand the storm.

"If there's buffeting from outside then we'll get buffeted. We have before and we will again," Flaherty told Sun News Monday. "What we can do is make sure our house is strong, that we're in good order, so we can survive well as we did the last time."

Liberal MP John McCallum, an economist and former minister of national revenue, warned the consequences for Canada could be dire.

"What if we have a repeat of the crisis of three years ago where the banks don't trust each other, don't want to lend to each other, interest rates go through the roof and the financial system seizes up?" he said.

McCallum said the feds should prepare for more global financial instability and delay a series of spending cuts that are expected to ultimately achieve $4 billion in annual savings.

The 2008 financial crisis, coupled with successive Greek governments spending way beyond their means, led to fears last year that Greece would be unable to meet its debt payments. In May 2010, the European Union agreed to hand over hundreds of billions in bailout loans if Greece slashed government spending. The government agreed, but citizens rioted against the austerity measures required to avoid debt default.

http://money.canoe.ca/money/business/canada/archives/2011/09/20110912-173135.html