Neither investment nor foreign outsourcing by Canadian business in other countries leads to massive job or economic losses on the homefront, a new report finds.
The Conference Board of Canada released a 24-page study Wednesday stating that direct investment in abroad companies, programs and services leads to greater productivity, trade and other economic benefits for the nation and its business sector.
"The strongest performing Canadian companies use direct investment abroad to improve their performance by accessing new markets, technologies, talents, suppliers and resources," said Danielle Goldfarb, associate director of the International Trade and Investment Centre.
"Rather than detracting from Canada's economic activity, the evidence shows that investments abroad translate into overall long term benefits for Canada and its regions," he added.
However, the report also mentioned that the effects of foreign investment depend on the reasoning behind the spending, as a company that is purely seeking cheaper labor will likely harm Canadian employment.
Among its chief findings, the report claims that approximately $17 billion earned by Canadian companies abroad was repatriated in 2008.
