You are asked to analyse current developments in Canadian cultural, Essay

You are asked to analyse current developments in Canadian cultural, political and economic business environment impacting investment plans of a German-based luxury car manufacturer - Essay Example This paper will explore current developments in Canada’s cultural, political and economic business environment and how they affect Audi’s investment objectives. With its stable democracy, economy, and culture, Canada ranks high on the list of ideal investment locations in the world. The economy has been thriving since the end of World War Two, and the country has been in the good books of major international organisations for as long as it has existed. The country’s middle class has been growing steadily over the years, and there are no signs that it will shrink anytime soon. The number of wealthy citizens has also increased significantly in the past two decades, creating more spending power and expanding the market for luxury goods (Anastakis, 2013:21). Like all manufacturers of luxury products, Audi seeks to move as many of its goods as possible in the cheapest and most effective way possible. Audi has had operations in Canada since 1971, and it was one of the first automakers to venture into a market that was relatively unexploited at the time. As at January 2015 Canada had made almost 15% of the automobiles assembled in North Ame rica. The Economist has also rated the country’s business scene as the most conducive among G7 countries that produce vehicles. Canada has recognised its automobile industry as a key sector in its current and future growth plans. As such, it has put in place measures to support manufacturers in the country. Although Audi does not have an assembly plant in Canada, it still exports a significant amount of vehicles to the country, and operates dealerships that cater to the needs of its Canadian customers (Peters, 2013:26). A core aspect of supporting automakers is guaranteeing a global market for their goods. Using the Global Markets Action Plan, the Canadian government has signed 7 different free trade agreements with thirty-eight nations. In addition, it has signed or adopted