By exporting hybrid pearl millet seed from Canada to Nepal, potential benefits could arise to the exporting nation. The Speare Seeds company will be able to obtain a reasonable profit for their products due to the fact that a large quantity would be used to export to Nepal (Hoewing, 2016). Since the Speare Seeds company is a small, locally owned business with few employees, there could potentially be more job opportunities available in terms of seed growers due to the fact that a large quantity of this seed would need to be manufactured in Canada (Hoewing, 2016).
Another beneficial factor that may arise from exporting this seed may be by the creation of a more diverse market for the Speare Seeds products. This may be a potential outcome considering this company only distributes its products across Canada. Opening this market up to Nepalese farmers could possibly expose their business potential (Moeller, 2012). This may also develop a wider range of clients for Canada to export products to other countries, creating more stable market conditions that can withstand fluctuations (Global Affairs Canada, 2012).
Exporting pearl millet seed out of Canada will likely contribute to increasing Canada’s export growth. Figure 3 displays a graphical representation that shows Canada’s real exports over the given timeframe. Figure 4 displays a graphical representation that shows Canada’s imports over the same given time frame (Moeller, 2012). These graphs indicate that Canada has been importing significantly more products from other countries than exporting. Exporting pearl millet seed to Nepal could potentially add to the rise of Canada’s export growth, aiding in the relief of past declination in exports (Moeller, 2012).
Another beneficial factor that may arise from exporting this seed may be by the creation of a more diverse market for the Speare Seeds products. This may be a potential outcome considering this company only distributes its products across Canada. Opening this market up to Nepalese farmers could possibly expose their business potential (Moeller, 2012). This may also develop a wider range of clients for Canada to export products to other countries, creating more stable market conditions that can withstand fluctuations (Global Affairs Canada, 2012).
Exporting pearl millet seed out of Canada will likely contribute to increasing Canada’s export growth. Figure 3 displays a graphical representation that shows Canada’s real exports over the given timeframe. Figure 4 displays a graphical representation that shows Canada’s imports over the same given time frame (Moeller, 2012). These graphs indicate that Canada has been importing significantly more products from other countries than exporting. Exporting pearl millet seed to Nepal could potentially add to the rise of Canada’s export growth, aiding in the relief of past declination in exports (Moeller, 2012).
Figure1.
Retrieved from: http://www.edc.ca/EN/Knowledge-Centre/Economic-Analysis-and-Research/Documents/canadian-integrative-trade-performance.pdf
Figure 2.
Retrieved from: http://www.edc.ca/EN/Knowledge-Centre/Economic-Analysis-and-Research/Documents/canadian-integrative-trade-performance.pdf
Not only will exporting pearl millet increase trade, but it will also better Canada’s Gross Domestic Product. This may occur due to a greater yield of products being exported as well as a larger range of services being utilized throughout the process of exportation (Global Affairs Canada, 2012). This will likely give a greater value for the total amount of seed being produced, processed and shipped (Moeller, 2012).
Diversification of trading partners is a key factor when considering the exportation of goods out of Canada. By obtaining a diversification in trading partners, Canada may diminish a potential threat of an economic fluctuation in a region or other country, resulting in a possible deterioration of Canada’s economy (Moeller, 2012). Trading diversity with other countries may also present a beneficial factor by allowing exporters to take advantage of emerging market opportunities. This will allow for continuous and a potentially greater volume of products being exported (Global Affairs Canada, 2012).
Diversification of trading partners is a key factor when considering the exportation of goods out of Canada. By obtaining a diversification in trading partners, Canada may diminish a potential threat of an economic fluctuation in a region or other country, resulting in a possible deterioration of Canada’s economy (Moeller, 2012). Trading diversity with other countries may also present a beneficial factor by allowing exporters to take advantage of emerging market opportunities. This will allow for continuous and a potentially greater volume of products being exported (Global Affairs Canada, 2012).
Retrieved from: https://en.wikipedia.org/wiki/Flag_of_Canada