ADMS 1010B,F Fall 2013

Business in the Canadian Context—ADMS 1010

Calendar Description

We will look at key issues and companies in Canadian business. How has Canada achieved prosperity? How might we maintain it in a globalized economy? We will examine how our geography, our people and our legal and political institutions have shaped business and business has shaped government. We will use business case studies to look at political, economic and legal issues in the Canadian context.

Important Information:

Please BE AWARE: Students CANNOT write exams or submit any work for sections that they are not registered in. Students must confirm the correct section within the first two weeks of class. The instructor/course director has NO AUTHORITY to enroll students into the course. Please direct all registration questions to the main office of the Administrative Studies ( ). DO NOT contact the instructor/course director in these matters.

Courseobjective:

You will know how Canada’s business culture and laws have evolved, how Canadian business has failed and succeeded, and you will know better where business in Canadais going.

This section is going to be managed through Moodle.

Required Course Text / Readings

Joe Martin. Relentless Change: A History of Canadian Business. University of Toronto Press, 2010.

Geoffrey Hale. Uneasy Partnership: The Politics of Business and Government in Canada. University of Toronto Press, 2006.

Students will be expected to read and discuss current Canadian business issues and events. These can be found in sources such as The Globe and Mail’s Report on Business, the Toronto Star, the National Post, CBC.ca, CTV.ca and Canadian Business magazine. Links to good sources for global business and economic news can be found in the Business Section of Google News. Also, the following is a great primer on Canadian history and while not a required textbook, it’s available as an e-book and worth purchasing.

Evaluating your performance

1.Final exam 40%

2.Two midterm exams (Week 5 and Week 9) 25% each

3.Two in-class group projects (Week 3 and Week 7) 5% each

Instructor:Joel Marcus

Email:

Office hours: Mondaynoon-2pm [205 Atkinson]

Expanded Course Description

Week 1 (September13): Introduction

What are we going to do for 12 weeks?

Canada –the country founded as a place of business:

  • Government support of business
  • Business and financial institutions in Canada
  • Trade, business ownership and foreign countries
  • Overview of Canadian History
  • The relationship between business and government

Learning Objectives:

You will know how I will manage the course, what the expectations are for students and how to succeed in the course. You will also know the topics and theories we will cover in greater depth later in the course. We will discuss the key features of the Canadian Economy.

You will know the early history of Canada and how the country was founded to supply greater resources to European nations. You will begin to consider the roles that government and business play in the Canadian economy.

Readings (to be done prior to class):

Relentless Change – Part One: Laying the foundations, 1850-1905 (pp. 1-14)

Uneasy Partnership – Introduction, and Chapter 1: Business and government: The politics of mutual dependence (pp. 3-31)

Make sure to read the section on Canada’s history

Week 2 (September 20): The Foundations of Canada’s Economy

  • Regionalism and Federalism
  • Banking in Canada
  • Theoretical Models: Stern School “growth diamond”

Learning Objectives:

You will understand the context for Canada’s government and the nature of the Canadian Confederation and the economic powers of the Canadian state.You will understand how Canada’s financial systems were formed and what role they play in our economy. You willalso learn the Stern School “growth diamond” theory of economic development and how to apply it.

Readings:

Relentless Change – Case 1: Origins of financial stability in Canada: The Bank Act of 1871 (pp. 21 – 37)

Uneasy Partnership – Chapter 7: Federalism, regionalism, and the context for business-government relations (pp. 213-243)

(12 pp long with pictures)

Stern School “growth diamond”: (1 page)

WEEK 3 (September 27): Canada expands—Agriculture and Manufacturing

International trade policies, Protectionism and Canadian business

Learning Objectives:

You will understand the importance of the rise of two industries: agriculture and manufacturing in 19thand 20thcentury Canada.You will understand the roles of business and of government in creating a national identity.You will understand how protectionism and free trade influence industries.

Readings

Relentless Change – Case 3: Canada’s first great manufacturing enterprise: The story of Massey Harris (pp. 60-78)

Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140)

FIRST IN-CLASS GROUP ASSIGNMENT (5%)

Week 4 (October 4): Manufacturing and the Automobile Industry

  • History of the Auto Sector in Canada
  • Manufacturing and FDI
  • Protectionism and the Auto Sector
  • The Auto Pact
  • Globalization and International Trade
  • Canada’s Restrictions on International Trade
  • Globalization’s Impact on the Canadian Auto Sector

Learning Objectives:

You will understand the importance of the auto industry in Canada.You will be able to identify the positive and negative potential of Foreign Direct Investment in Canada.You will understand the advantages and disadvantages of open trade policies.

Readings:

Relentless Change – Case 5: The role of trade policy in the rise of the Canadian automobile industry (pp. 120-136)

Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140)

WEEK 5 (October11): MIDTERM #1 (25%)

Closed book, in-class 2 hour exam

Week 6 (October18): Government Business Enterprises– CNR

  • Crown Corporations

oPrivatization and Nationalization

Learning Objectives:

You will understand the ways in which the Canadian government traditionally intervenes in markets and its reasons for doing so.You will understand the importance of infrastructure (e.g. railroads) in the Canadian economy.You will be able to describe a crown corporation, its purposes and its limitations.You will able to describe the pressures and potential advantages to creating and privatizing crown corporations

Readings:

Relentless Change – Case 4: ‘Irrational exuberance’: The creation of the CNR (pp. 100-117)

Uneasy Partnership – Chapter 9: Government business enterprises: The state sector in transition (pp. 271-302)

WEEK 7 (October25): The Rise of the Canadian Consumer and Canadian Retail

  • History of Canadian Retail
  • The emergence of a consumer economy after WW2 the Rise of the Department Store
  • Women in the work force
  • The US Retail Invasion, globalization and their impact on Canadian Retail
  • Porter’s 5 forces—A model of competition within an industry

Learning Objectives:

You will understand the role of the retail industry in Canada.You will understand the transition of the Canadian economy post WW2 to a consumer driven economy.You will be able to discuss the rise of women as economic agents in Canada.You will be able to understand and comment on issues related to the globalization of retail in Canada. You will understand the dominant models of competition within an industry and analyze them based on Porter’s 5-Forces model.

Readings:

Relentless Change – Case 6: Eaton’s and Simpsons-Sears (pp. 140-157)

Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212)

SECOND IN-CLASS GROUP ASSIGNMENT (5%)

WEEK 8 (November8): Natural Resources — Oil

  • History of extraction in Canada
  • Petroleum and theAthabasca Oil Sands
  • NAFTA and Oil
  • Foreign Direct Investment (FDI)
  • Foreign Ownership In Canada
  • Benefits and Challenges of Foreign Ownership
  • Regional Economic Disparity in Canada
  • The National Energy Program
  • East-West Markets
  • The future of manufacturing in Canada
  • Canadian prosperity and innovation
  • The Canadian dollar

Learning Objectives:

You will understand the importance of FDI in the natural resource industry. You will understand the forces which are moving Canada’s economic centre to the West and its meaning for the rest of Canada.

Readings:

Relentless Change – Case 9: Canada’s black gold: From the Leduc discovery to the National Energy Program (pp. 221-239); Case 13: Canada the next oil superpower? (pp. 319-339)

Uneasy Partnership – Chapter 5: Business, government, and the politics of economic upheaval: 1970 to present (pp. 141-171)

WEEK 9 (November15): MIDTERM #2 (25%)

Closed book, in-class 2 hour exam

WEEK 10 (November22): NAFTA - Wine in Canada

  • History of the Wine Industry in Canada
  • VQA
  • The LCBO
  • International Wine Trade
  • NAFTA, Wine and National Treatment
  • Key Stumbling Blocks to Global Free Trade

Learning Objectives:

You will understand the importance of free trade and the transition to a globalized economy in Canada. You will be familiar with the topics of free trade, NAFTA, protectionism, (WTO/GATT, World Bank, IMF), trade wars, comparative advantage (Ricardo, Smith and Hume) and supply management in Canada

Readings:

Relentless Change – Case 10: The free trade agreement and the Canadian wine industry (pp. 265-283)

Uneasy Partnership – Chapter 8: Business, government, and the North American and global economies (pp. 245-369)

WEEK 11 (November29): Canadian Financial Institutions: the last 50 years

oProfile of the Financial Services Industry in Canada
  • Financial Regulation and Oversight
  • Key Differences between US and Canadian Banking Systems
  • How Canadian Banks Avoided the Mortgage Crisis
  • The Collapse of Confederation Life
  • RBC, Bank Mergers and “Too Big to Fail”

Learning Objectives:

You will understand the financial services industry, one of the key industries of any country.You will understand the complex relationship between ‘non predatory government’ and the financial system. You will understand the role of regulation in Canadian financial industries and ultimately, in the whole economy.

Readings:

Relentless Change – Case 11: The collapse of Confederation Life (pp. 286-301) and Case 12: RBC yesterday, today, and tomorrow (pp. 303-317)

Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212)

What Toronto Can Teach New York and London, Chrystia Freeland in the Financial Times

WEEK 12 (December 6): WRAP-UP AND FINAL EXAM REVIEW

Additional Information

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The use of technology in this course is at the discretion of individual instructors and may vary between sections. Mobile devices of any kind may not be permitted in this course except for accessibility reasons or extenuating situations to be assessed on a case-by-case basis. Failure to comply with this policy could result in you being asked to leave the classroom for all or part of the course.

Last modified: September 3, 2013

COURSE CALENDAR

Week 1
(Sep. 13) / Introduction:
  • Relentless Change – Part One: Laying the foundations, 1850-1905 (pp. 1-14)
  • Uneasy Partnership – Introduction, and Chapter 1: Business and government: The politics of mutual dependence (pp. 3-31)
  • Make sure to read the section on Canada’s history

Week 2 (Sep. 20) / The foundations of Canada’s economy:
  • Relentless Change – Case 1: Origins of financial stability in Canada: The Bank Act of 1871 (pp. 21 – 37)
  • Uneasy Partnership – Chapter 7: Federalism, regionalism, and the context for business-government relations (pp. 213-243)
  • (12 pp long with pictures)
  • Stern School “growth diamond”: (1 page)

`Week 3
(Sep. 27) / Canada expands – Agriculture and manufacturing:
  • Relentless Change – Case 3: Canada’s first great manufacturing enterprise: The story of Massey Harris (pp. 60-78)
  • Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140)
  • FIRST IN-CLASS GROUP ASSIGNMENT (5%)

Week 4 (Oct. 4) / Manufacturing and the automobile industry
  • Relentless Change – Case 5: The role of trade policy in the rise of the Canadian automobile industry (pp. 120-136)
  • Uneasy Partnership – Chapter 4: Business, government, and the politics of development: 1760-1970 (pp. 99-140)

Week 5
(Oct. 11) / IN-CLASS MIDTERM #1
Week 6 (Oct. 18) / Government business enterprises – CNR
  • Relentless Change – Case 4: ‘Irrational exuberance’: The creation of the CNR (pp. 100-117)
  • Uneasy Partnership – Chapter 9: Government business enterprises: The state sector in transition (pp. 271-302)

Week 7 (Oct. 25) / The rise of the Canadian consumer and Canadian retail
  • Relentless Change – Case 6: Eaton’s and Simpsons-Sears (pp. 140-157)
  • Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212)
  • SECOND IN-CLASS GROUP ASSIGNMENT (5%)

Week 8
(Nov. 8) / Natural resources – Oil
  • Relentless Change – Case 9: Canada’s black gold: From the Leduc discovery to the National Energy Program (pp. 221-239); Case 13: Canada the next oil superpower? (pp. 319-339)
  • Uneasy Partnership – Chapter 5: Business, government, and the politics of economic upheaval: 1970 to present (pp. 141-171)

Week 9
(Nov. 15) / IN-CLASS MIDTERM #2
Week 10
(Nov. 22) / NAFTA – Wine in Canada
  • Relentless Change – Case 10: The free trade agreement and the Canadian wine industry (pp. 265-283)
  • Uneasy Partnership – Chapter 8: Business, government, and the North American and global economies (pp. 245-369)

Week 11
(Nov. 29) / Canadian financial institutions: The last 50 years
  • Relentless Change – Case 11: The collapse of Confederation Life (pp. 286-301) and Case 12: RBC yesterday, today, and tomorrow (pp. 303-317)
  • Uneasy Partnership – Chapter 6: Canada’s economic structure: Diversity, dynamism, and the political economy of business-government relations (pp. 179-212)
  • What Toronto Can Teach New York and London, Chrystia Freeland in the Financial Times

Week 12
(Dec. 6) / WRAP-UP AND FINAL EXAM REVIEW

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