I.

INTRODUCTION
1. TECO Uniservia Background
 TECO provides products focused on enterprise-wide integration and
efficiency of corporate IT functions.
 Such products typically require approval by the U.S. government before
they can be exported. Uniservia has this approval.
 TECO annual revenues exceed $15 Billion, with about 11% of revenues
in Emerging Markets (Austral-Asia/Africa/ME/LA)
 New product development cycle is 2-3 years from concept to commercial
launch. Typical cost of development is $100-200 Million.
 Prior to Uniservia, the only available alternative for MNCs were to
purchase separate equipment for each area of the company, at a cost that
was in excess of 2X that Uniservia (i.e. > $3.2 Million).

2. TECO Uniservia Characteristics

 Uniservia was launched in N. America and W. Europe in late 2010.
 It is proven to reducing operating costs by about half.
 Pricing for Uniservia in the U.S. is $1.6 Million initial investment and
annual maintenance service contract costing 10% of the initial
investment.
 Cost of production is very low compared to the price.
 Based on launches in select markets, there is already a high level of
interest in Uniservia from MNCs worldwide. People want it!
 II. PERT ANALYSIS

POLITICAL

 Form of government

Australia Canada China Russia

Form of Federal Federal People's Federation
governemnt democratic Republic
administration

Canada

Canada is known as a peaceful country, political stability. The law protects

citizens are paying special attention. It ranks among the highest in international
measurements of education, government transparency, civil liberties, quality of
life, and economic freedom. Canada is a member of the Commonwealth of
Nations.

Canada is a federation, which means that powers are divided between a central
government and 10 provinces. Since 1982, the Canadian Charter of Rights and
Freedoms is entrenched in the Constitution. Despite these changes, Canada
remains a constitutional monarchy and the Queen of the United Kingdom,
Elizabeth II, is still the Queen of Canada.

Canada’s system of government is inspired by the British parliamentary

system and strongly rooted in tradition. The Parliament of Canada consists of
two houses: The House of Commons and The Senate

However, Canada has evolved variations: party discipline in Canada is

stronger than in the United Kingdom and more parliamentary votes are
considered motions of confidence, which tends to diminish the role of non-
Cabinet Members of Parliament. The two dominant political parties in Canada
have historically been the Liberal Party of Canada and Conservative Party of
Canada, however, as of the 2011 election the social-democratic New
Democratic Party has risen to prominence. This rise of prominence mirrors a
historic decline in the Liberal party's popularity. Smaller parties like the Quebec
nationalist Bloc Québécois and the Green Party of Canada can exert their own
influence over the political process.

Russia
The Russian Federation is made up of 21 autonomous republics with the
capital being in Moscow. The Russian Federation is fundamentally structured as
a multi-party representative democracy, with the federal government composed
of three branches: Legislative, Executive, Judiciary.
The Federal Council has 176 members. There are more than 20 parties
currently competing in Russian politics.
In the area of political structure and ages, Russia does not fit easily into any
category and that has not had a lot of experience with democracy.

As one of five permanent members of the UN Security Council, Russia plays a

major role in maintaining international peace and security. An important aspect
of Russia's relations with the West is the criticism of Russia's political system
and human rights management by the Western governments, the mass media
and the leading democracy and human rights watchdogs

Australia
Australia’s system of government is founded in the liberal democratic
tradition. Based on the values of religious tolerance, freedom of speech and
association, and the rule of law, Australia’s institutions and practices of
government reflect British and North American models. Australia is known as a
constitutional monarchy. Australia's head of state is Queen Elizabeth II (also
Queen of the United Kingdom) but the two positions now are quite separate,
both in law and constitutional practice.
In practice, the Queen is plays no role within the Australian political system
and is merely a figurehead. In Australia, the Queen is formally represented by a
Governor General whom she appoints on the recommendation of Australia's
Prime Minister.
Relative to some other countries, Australia’s political parties and their internal
operations are comparatively unregulated, but internal party discipline is
extremely tight. Australia has four main political parties. The Australian Labor
Party (ALP), the Liberal Party, The National Party of Australia, formerly the
Country Party, The Australian Greens.
Australia’s major political parties have structured ways to involve their
members in developing party policy on issues. Elected politicians rarely vote
against their parties in parliament.

China
The Peoples Republic of China take place in a framework of the single-party
socialist republic. State power within the People's Republic of China (PRC) is
exercised through the Communist Party of China, the Central People's
Government and their provincial and local counterparts. The ruling Communist
Party committee at each level plays a large role in the selection of appropriate
candidates for election to the local congress and to the higher levels.
However, many Chinese and foreign observers see the PRC as in transition
from a system of public ownership to one in which private ownership plays an
increasingly important role. Privatization of housing and increasing freedom to
make choices about education and employment severely weakened the work
unit system that was once the basic cell of Communist Party control over
society. China's complex political, ethnic and ideological mosaic, much less
uniform beneath the surface than in the idealized story of the Propaganda
Department of the Central Committee of the Communist Party of China, resists
simple categorization
As the social, cultural and political as well as economic consequences of
market reform become increasingly manifest, tensions between the old—the
way of the comrade—and the new—the way of the citizen—are sharpening.

 Level of terrorism

The Global Terrorism Index (GTI) is an attempt to systematically rank the

nations of the world according to terrorist activity. The index combines a
number of factors associated with terrorist attacks to build a thorough picture of
the impact of terrorism over a 10-year period, illustrating trends, and providing
a data series for analysis by researchers and policy makers. The GTI score for a
country in a given year is based on a unique scoring system to account for the
relative impact of incidents in the year. There are four factors counted in each
country's yearly score:
 Total number of terrorist incidents in a given year
 Total number of fatalities caused by terrorism in a given year
 Total number of injuries caused by terrorism in a given year
 The approximate level of total property damage from terrorist incidents
in a given year
 GTI
8

7
7.068
6

5
4.992
4

2
1.72
1
1.177
0
Australia Canada China Russia

 Political stability
Political stability can be defined as the state of peace that is experienced in a
country, thanks to the activities of the government. The government in this case
makes decisions keeping in mind the best interests of the people. According to
Failed States Index(FSI) of the United States think-tank Fund for Peace. A
failed state has several attributes. Common indicators include a state whose
central government is so weak or ineffective that it has little practical control
over much of its territory; non-provision of public services; widespread
corruption and criminality; refugees and involuntary movement of populations;
sharp economic decline.
 FSI
90

80

70

60

50

40 80.9 77.1
30

20
25.4 26
10

0
Australia Canada China Russia

 Comparing 4 countries, we can see Canada is the best choice for

investment. Only China is a single-party socialist republic. But the political
is unstable in China and Russia. Crises in relations between China with
other countries have occurred at various times in its recent history,
particularly with the United States. In addition, relations between the
Russia and the US took another downturn in 2012, on account of Russian
sensitivity to US criticism of its treatment of human rights activists and
opponents of the Kremlin. The Ukrainian revolution of February 2014,
triggered an even more serious crisis in East-West relations. Recently, G7
to hold summit without Russia.
Australia is also a peaceful nation like Canada. But Canada has more
advantage thanks to the long-term relation between Canada and U.S. The
United States and Canada share two borders and their bilateral
relationship is among the closest and most extensive in the world. In
addition to their close bilateral ties, Canada and the United States
cooperate in multilateral fora, including international efforts to combat
terrorist financing and money laundering. U.S. defense arrangements with
Canada are more extensive than with any other country. The Permanent
Joint Board on Defense provides policy-level consultation on bilateral
defense matters and the United States and Canada share North Atlantic
Treaty Organization (NATO) mutual security commitments. U.S. and
Canadian military forces cooperate on continental defense within the
framework of the binational North American Aerospace Defense
Command (NORAD).

ECONOMIC

 Economic system

Australia

The economy of Australia is one of the largest capitalist economies in the world
with a GDP of US$1.57 trillion. This economy is dominated by its service
sector, comprising 68% of GDP

Free market is the main characteristics of the economic system of Australia. It

is among the first five developed countries of the world. The four main
components of the Australia economic system are TRADE,
MANUFACTURING, SERVICES and FINANCE. The standard of living of
Australia has just been below United States now.

Australian economic system consists of industrialization, private enterprises,

large scale productions, high technology, natural resources and small business.
The integral part of the economic system of Australia is the Australian
Securities Exchange or ASX.

Canada
Canadians has one of the world’s greatest economic systems. Today, Canada is

the 9th largest economy in the world based on GDP (nominal) and the 14th

largest based on GDP (PPP)

Canada is one of the global leaders of the entertainment software industry. As

with other developed nations, the Canadian economy is dominated by the
service industry.

Canada has established an economic system similar to that of many other

economically successful nations – largely market-based, encouraging effective
and innovative private ownership while government maintains a strategic role
particularly in the area of social services, broad economic policies, and the
provision of essential services such as education and health care. Our system is
often referred to as a capitalist system because they allocate and encourage the
private ownership of capital, that is, the plants, factories equipment, and so forth
that are used to produce and provide goods and services.

Our economic system is also referred to as a mixed economy because it

involves both private and public ownership of resources, and goods and services
are produced and provided by both governments and privately owned
companies.

In general, Canada’s economy has come to rely most heavily on privately

owned production activity, with entrepreneurs identifying a need or want
(demand) and establishing businesses to produce a goods or services (supply) in
response.

Today Canada closely resembles the US in its market-oriented economic system

and pattern of production.

China
The socialist market economy of China is the world’s second largest economy
after the US. Economic restructure is one of the most crucial elements of
China's reform and opening-up policy because of encouraging the development
of diversified economic elements whilst retaining the dominance of the public
sector; creation of a modern enterprise system to meet the requirements of the
market economy; a unified and open market system across China, linking
domestic and international markets, and promoting the optimization of
resources; transformation of government economic management in order to
establish a complete macro-control system; encouraging certain lead groups and
areas to become rich first, enabling them to help others towards prosperity too;
the formulation of a China-appropriate social security system for both urban and
rural residents, so as to promote overall economic development and ensure
social stability. According to the plan, China is forecast to have a relatively
complete socialist market economy in place by 2010 and this will become
comparatively mature by 2020. The Chinese government has reformed the
economy from a planned economy to a more market-oriented economy.

Russia

The economy of Russia is the 8th largest economy in the world by nominal value
and the 6th largest by PPP.

Russia has undergone significant changes since the collapse of the

Soviet Union, moving from a globally-isolated, centrally-planned
economy to a more market-based and globally-integrated economy.

It is difficult to attract foreign direct investment that has contributed

to a noticeable slowdown in GDP growth rates. In lat e 2013, the
Russian Economic Development Ministry reduced its growth forecast
through 2030 to an average of only 2.5% per year, down from its
previous forecast of 4.0 to 4.2%.
  GDP Trends

Australia

o GDP: $1.542 trillion (2012 EST.)

o GDP Growth: 3.6% (2012 EST.)
o GDP per capita: $67,304 (2012)
o Inflation (CPI): 1.8% (2012)
o Unemployment rate: 5.7% (2013)

In 2012, It was worth 1520.6 billion US dollars, according to the World Bank
Group. From 1960 until 2012, Australia GDP averaged 325.7 USD Billion

ACTUAL PREVIOUS HIGHEST LOWEST FORECAST DATES UNIT FREQUENCY

1960 - USD
1520.60 1384.20 1520.60 18.60 1710.64 | 2013/12 YEARLY
2012 BILLION
GDP Growth Rate in Australia averaged 0.88% from 1959 until 2013,
reaching an all time high of 4.50 Percent in the first quarter of 1976 and a
record low of -2 Percent in the second quarter of 1974.

Canada

o $1.839 trillion (2013 EST.)

 14th in the world

o 2.0% growth (2013 EST.)

o 1.2% Inflation (CPI (2013 EST.)

o $52,300 (nominal,2012) GDP Per Capita

o Unemployment rate: 7% (2013)

 Canada’s economy was one of the best performing economies among the
developed nations during 2002–07, with GDP growing at a CAGR of around
2.7%. From 1.8% in 2003, real GDP growth peaked in 2004 to reach 3.1%. The
growth rate declined during 2008 to reach 0.5% due to the global financial
crisis, and contracted by 2.5% in 2009. However, the economy rebounded with
a growth of 3% in 2010. According to Data monitor forecasts, the GDP is
expected to grow by 2.6% in 2011.

In 2012, it was worth 1821.40 billion US dollars. From 1960 until 2012, Canada
GDP averaged 524.8 USD billion.

ACTUAL PREVIOUS HIGHEST LOWEST FORECAST DATES UNIT FREQUENCY

USD
1710.64 | 2013/1 1960 -
1520.60 1384.20 1520.60 18.60 BILLIO YEARLY
2 2012
N

 Canada is investing in new technology and building new factories.

China

GDP: $15.5614 trillion

 GDP growth 7.7% (2013)

GDP per $7,083 (nominal; 2014)

capita $11,253 (PPP; 2014)

GDP by sector Agriculture: 10.1%, industry: 45.3%,

services: 44.6%% (2012 est.)

Inflation (CPI) 2.5% (December 2012)

Unemployment rate : 4.1% (2012)

GDP (PPP) - share of world total

1980 1990 2000 2010 2015**

2.19% 3.89% 7.15% 13.58% 17%

**Forecast

=> From 1989 until 2013, China GDP Annual Growth Rate averaged 9.2
Percent reaching an all time high of 14.2 Percent in December of 1992 and a
record low of 3.8 Percent in December of 1990
Russia

GDP

$2.553 trillion (2013 est.)

GDP - per capita (PPP):

$18,100 (2013 est.)

GDP - real growth rate:

1.3% (2013 est.)

Unemployment rate:

5.8% (2013 est.)

Inflation rate (consumer prices):

6.8% (2013 est.)

The Gross Domestic Product (GDP) in Russia was worth 2014.80 billion US dollars in 201
Russia represents 3.25 percent of the world economy. GDP in Russia is reported by the Wo
until 2012, Russia GDP averaged 741.3 USD Billion reaching an all time high of 201
December of 2012 and a record low of 195.9 USD Billion in December of 1999
 FDI Trends

Australia

Australia has received on average

US$26 billion of FDI inflows each
year since 2001. In 2009, Australia
received FDI inflows of US$23
billion, a 52 per cent decline from
the peak of US$47 billion in 2008.
This decline may be attributed to
factors such as stymied capital
raisings by companies offshore
driven by the global credit crunch,
or the domestic investment market
appearing unattractive.

As a result, FDI in Australia is not concentrated in any particular industry

sector, and contributes to overall pool of saving available for productive
investment, even if it itself directed toward existing assets.

Indeed, Australia's economy is dominated by its services sector, yet its

economic success is based on abundance of agricultural and mineral resources.
Australia's comparative advantage in the export of primary products is a
reflection of the natural wealth of the Australian continent and its small
domestic market. The country is a major regional financial centre and a vital
component of the global financial system.
Some corporation markets in Australia like Altium, TechnologyOne, PicNet,
iiNet, BHP Billiton, Rio Tinto, Macquarie Bank, …

Canada

In recent years, FDI flows into Canada have been diversified across many
industries. The values of FDI in Canada reached 349.4 USD billion in 2002, as
compared with 130.9 US billion dollars in 1990. At the end of 2002,
approximately 23% of the total stock of FDI in Canada was in the energy and
minerals industry ($79.7 billion)

Canada ranks 6th out of 16 countries on inward FDI in 2011, but earns only a
“D” grade. Canada attracted 2.7 per cent of the world’s FDI in 2011 and
accounted for 2.5 per cent of world GDP

Although the manufacturing sector still occupies the top position, at 32 per cent
of inward FDI stock, Canada’s mining and energy sectors have slowly climbed
 to second place, at 19 per cent. Management of companies and enterprises has
crept into third place (18 per cent), while the share for finance and insurance
industries is in fourth place at 13 per cent.

Some corporation markets in Canada like Open Text, Constellation Software,

MKS, Mitel…

China

In 2012, FDI into China amounted to USD 111.7 billion, down by 3.7% y-o-y.
FDI into China fell for seven consecutive months from June 2012 to December
2012 with lingering concerns that China’s economic development will continue
to slow in 2013.

 In H1 2013, non-financial foreign direct investment (FDI) into China amounted

to USD 62bn
 In June 2013, FDI into China saw its strongest surge in more than two years,
with FDI totaling USD 14.4 billion and yearly FDI firmly on track of achieving
the government’s estimate of USD 120 bn. This monthly peak in FDI may allay
investors’ fears in China’s growth prospects.
Chart: Foreign Direct Investment Flows as a percentage of GDP

Some corporation markets in China like Tencent, Netease, Baidu, Alibaba,

Shanda, ….

Russia

Russia is potentially an attractive host economy for FDI, mainly due

to its large market and rich natural resources. But the Government
has been unable to make changes to attract FDI.

FDI: $552.8 billion (31 December 2013 est.)

According to the Bank of Russia, FDI inflows in Russia were US$ 75.5 billion
in 2008 and US$ 38.7 billion in 2009. Russia has recently been narrowing this
 gap and has become the leader among post-communist countries in total FDI
inflows

 Some corporation markets like I.T. Group Co., Armada, Medical Technologies
Ltd., SMART SOLUTIONS Software Engineering Company.

Comparison between 4 countries

GDP per capita 2012(current $US)

80000

70000
67,556
60000

50000
52,219
40000

30000

20000

10000 14,037
6,091
0
Australia Canada China Russia
 Unemployment rate(2013)
0.08

0.07
0.07
0.06
0.057 0.058
0.05

0.04
0.041
0.03

0.02

0.01

0
Australia Canada China Russia

Inflation rate (2012)

0.08

0.07
0.068
0.06

0.05

0.04

0.03

0.02 0.025
0.018
0.01
0.012
0
Australia Canada China Russia
 Growth rate
0.09

0.08

0.07 0.077

0.06

0.05

0.04

0.03 0.036

0.02
0.02
0.01
0.013
0
Australia Canada China Russia

 Canada has one of the lowest debt to GDP ratios of the major
developed nations, giving it exceptional financial flexibility and
reducing the risk of Canada being forced to debauch the currency
and create excessive inflation All of the above mean that Canada´s
economy, while not immune to the global economy, is better
positioned than those of almost any major nation in the world.
Canada is definitely one of the best countries in the world from a
stability point of view. Centurion Apartment REIT only invests in
apartment properties in Canada
REGULATORY

 Legal system

Australia Canada China Russia

Legal common law common law civil law civil law
system

Common law and civil law has numerous of differences. Common-law

systems make extensive use of statutes, judicial cases are regarded as the most
important source of law, which gives judges an active role in developing rules.
In contrast, civil-law systems, codes and statutes are designed to cover all
eventualities and judges have a more limited role of applying the law to the case
in hand. When it comes to court cases, judges in civil-law systems tend towards
being investigators, while their peers in common-law systems act as arbiters
between parties that present their arguments. The United States also follow
common law. So Australia and Canada is more preferable choice due to the
correspondence of legal system. If there are some business disputes between
TECO and others native companies, it is difficult to make a dispute settlement
with different legal system.
  Protection for IP
Trade Secrets and Market Access table (GIPC international IP index in
2014)

Australia Canada China Russia

Protection 0.75 1 0 0
of trade
secrets
Barriers 1 1 0 0.75
to market
access
Total 1.75 2 0 0.75

Barriers to market access, in theories of competition in economics, also known

as barrier to entry, are obstacles that make it difficult to enter a given market.
The term can refer to hindrances a firm faces in trying to enter a market or
industry, such as government regulation and patents, or a large, established firm
taking advantage of economies of scale, or those an individual faces in trying to
gain entrance to a profession, such as education or licensing requirements. A
barrier to market is a prerequisite decision of the ease of entry into an industry.
The ease of entry is important because it determines the likelihood that a
company will face new competitors. In industries that are easy to enter, sources
of competitive advantage tend to wane quickly. On the other hand, in industries
that are difficult to enter, sources of competitive advantage last longer, and
firms also tend to develop greater operational efficiencies because of the
pressure of competition. Some small businesses are likely to possess low entry
due to the reduction of risk in entering a new market, and may make the
opportunity more attractive financially. But Glen L. Urban and Steven H. Star
explained in their book Advanced Marketing Strategy "in many cases, we would
be better off selecting market opportunities with high entry barriers (despite the
greater risk and investment required) so that we can enjoy the advantage of
fewer potential entrants." TECO is a large multinational technology company,
and the software market is highly competitive so a high barrier to market access
is good opportunity for TECO.

Software Piracy Rate (BSA Ranking of Software Piracy Rates, GIPC Index
Countries Samples,2013)

90%
80%
70% 77%

60%
63%
50%
40% Rate
30%
20% 27%
23%
10%
0%
Australia Canada China Russia

The Software Piracy Rate reports the proportion of installed software that is
pirated. It is very dangerous to launch a new software product into a market
with low rate because it is very easy to steal and copy. Australia Market and
Canada Market have an equivalent low rate, so enter the two markets is more
safety.

Some Keys of Strengths and Weaknesses of 4 countries

Country Strength Weakness

Australia  Broad scope of patentability  Inadequate legal measures

for pharmaceutical preventing online copyright
inventions.. infringement
 Scope of limitations and  Insufficient criminal
exceptions to copyright and penalties
related rights.
 DRM legislation
 Relatively

Canada  Patentability of CIIs  Onerous patentability

 Copyright amendments in requirements narrow the
2012 introduced DRM scope of inventions
legislation  No takedown mechanism in
 Central government ICT ISP notification system
procurement guidelines  Poor application and
include documentation on enforcement of civil
licensing as well as evidence remedies and criminal
of auditing taking place penalties
 Final agreement and
implementation of the CETA
between Canada and the EU
could strengthen Canada’s IP
environment
Russia  Contracting party to all  Regulatory data protection
international treaties included not fully implemented
in the GIPC Index  Limited DRM legislation
 Six year regulatory data  High levels of online and
protection introduced physical piracy
 Notice and takedown  Poor application and
framework introduced in 2013 enforcement of civil
remedies and criminal
penalties
China  Ongoing implementation of  Major producer and exporter
policies requiring proprietary of counterfeit goods
software used on government worldwide, including through
ICT systems to be licensed online sales
software  Very little protection of trade
 Introduction of new secrets
Trademark Law somewhat  Persistently high rates of
improves recognition of well- physical and digital piracy
known marks  Inability to effectively stop
 Amendments to the persistent, ongoing
Trademark Law and proposed infringement at retail and
amendments to the Copyright wholesale markets
Law increases penalties and  Ineffective framework
enforcement of IP directed to online sale of
 Government interest in counterfeit goods
effectiveness and efficiency in  Inconsistent criminal
handling IP disputes prosecution against
counterfeiters in many
industry sectors
 Tax laws

Tax laws
Australia Corporate profit tax:30%
Withholding dividend tax: 0-15%
Canada Corporate profit tax: 15%
Withholding dividend tax: 5%
China Corporate profit tax:25%
Withholding dividend tax:10%
Russia Corporate profit tax:20%
Withholding dividend tax:5%

 It is easy to see that, tax is very important factors that make investor
choose the market. Tax in Canada is low for US investor due to
NAFTA. And for all of information’s presented above, Canada is a
good choice for TECO Company According To Regulatory.
TECHNOLOGY
Some characteristics of technology in 4 countries

Strength Weakness
Australia  The Australian IT industry is  Australia has failed to foster an
booming in recent years environment that encourages
which have created a number creativity.
of IT jobs.  Missing a master plan for the
 Availability of local Australian technology and
technology skills in short software sector that articulates
supply how the industry might look in
 Australia’s IT service five, 10 or 20 years.
accounts for 4% GDP and
reach the second most
competitive IT industry in
Asia Pacific and the seventh
globally (EIU)
 The Australia Workforce and
Productivity Agency in 2011,
51% of all ICT graduates
aged 20 to 29 years were not
employed in ICT professional
occupations
Russia  The demand for new  Lack of modern technologies
manufacturing technologies  Level medium of technology
and machine tools continues  Not really good technical skills
to grow due to the planned and supply
modernization of production  One of the major incentives for the
facilities both at aircraft and rapid technological upgrade of
helicopter production plants. Russian refineries is the official
 The competitive situation in ban on the production of low-
the chemical market will quality fuels. However, the ban on
force local producers to production of Euro-2 fuel,
upgrade their technologies to originally scheduled for December
meet growing demand for 31, 2010, has been postponed
new materials and products. twice, because most Russian
In the next five years, the best refineries failed to upgrade their
opportunities for U.S. facilities to the level necessary for
exporters will be production the production of Euro-3 fuel
software.  In the Russian, refining industry
 Russia is demonstrating its use of old technologies
interest in implementing
 smart grid technology
through cooperation with the
United States
Strength Weakness
China  By 2010, and, after  Chinese firms encounter much
overtaking Japan in 2002, difficulty in attaining
China is expected to overtake sophistication in technology.
the United States to become  Lack the necessary capabilities
the world’s largest PC  Have price wars, patent
market. infringements, and generally
 According to a recent United speaking, a difficulty upgrading to
Nations report, China was the more sophisticated technology.
tenth largest high-tech
exporting country in the
world.
Canada  Canada's information and  Information and comunnications
communications technology technology council (ICTC)-
(ICT) sector is an important Outlook for Human Resources is
“alarming” labor shortage
part of the Canadian
economy. The ICT sector
currently represents 5 % of
Canada's gross domestic
product (GDP) and accounted
for 11.5 % of all real GDP
growth since 2002.
 Employees in the ICT sector
are well educated and earn on
average $62 000 or 47 %
more than the national
average.
 The Government of Canada
identified the ICT sector as
one of four priority sectors in
its 2007 Science and
Technology Strategy, and has
increased funding for
research and innovation
 the agreement between
Canada and the United States
on Emergency Management
Cooperation effective sharing
 of information.

 Approriability

The appropriability regime of a firm has been defined in previous research as

the extent to which knowledge and innovations can be protected from imitators.
Both tight and weak appropriability regime have advantages for foreign
companies invest in native country and depend on their products, company will
choose the most suitable market.

Advantages
Tight  Innovator can and will translate innovation into superior
appropriability returns!
regime  Innovator has time to access needed complementary
assets
 Innovator may license innovation to gain generic assets
 Innovator can commit $ to acquiring specialized or
cospecialized CA’s AND
 Innovator has time to refine product concept before DDP
 Weak  Innovator must let basic design “float” until it is clear
appropriability which design will become industry standard.
regime  Innovators must be linked to market asap so that user
needs can influence design
 Firms “ramp up” for mass production by acquiring
specialized tooling &distribution: “irreversibilities”.
 Prices become Less important -access to complementary
assets CRITICAL.
 Since core technology easy to imitate, commercial
success depends on terms of access to CA's
 Monopoly holders of CA’s could capture all profits from
innovation.

Canada, Australia and Russia are tight market, besides, China market is
weak. In the case of TECO, a multinational technology company, they want to
enter a tight market due to these advantages.
 IT infrastructure
IT infrastructure
consists of all components
that somehow play a role
in overall IT and IT-
enabled operations. It can
be used for internal
business operations or
developing customer IT or
business solutions.
IT infrastructure included 3 main factors:
 Infrastructure and digital content: Electricity production, Mobile network
coverage rate, International Internet bandwidth, Secure Internet servers,
Accessibility of digital content.
 Affordability: Mobile cellular tariffs, Fixed broadband Internet tariffs,
Fixed broadband Internet tariffs, Internet and telephony sectors
competition index.
 Skills: Quality of educational system, Quality of math & science
education, Secondary education gross enrollment rate, Adult literacy
rate.
 IT Infrastructure average point
7

6 6.4

5 5.5
5.3
4.8
4

0
Australia Canada China Russia

Technology index

The technology index denotes the country's technological readiness. This index
is created with such indicators as companies spending on R&D, the creativity of
its scientific community, personal computer and internet penetration rates.

Technology index
6

5
5.05 4.93
4
3.72 3.75
3

0
Australia Canada China Russia
 TECO provides products focused on enterprise-wide integration and
efficiency of corporate IT functions. Based on the competitive above,
TECO should choose Canada is the country to launch the new product.
 III. CONCLUSION

From many benefits, TECO should choose Canada to apply their software.

Mode of entry

There are many kinds of modes of entry, in thus, subsidiary seem to be the one
that most suitable with TECO in Canada.

Advantages of subsidiary in Canada

 The risk of withholding tax on passive income is avoided if 5% ( or less
percentage established by treaty) of gross revenue would result in a
higher level of tax than the Canadian income tax payable.
 Dividends are not taxed until paid, whereas any branch tax will be
payable when earned.
 Canada is a welcoming business environment; it is the best country in the
G-20 to do business, according to both Forbes and Bloomberg.
 Canada led all G-7 countries in economic growth over the past decade
(2003–2012).
 Once CETA comes into force, foreign investors in Canada will have
assured preferential access to both NAFTA and the EU - a vibrant market
with a combined GDP of US$35 trillion, or nearly one-half of the worlds
are output of goods and services.
  Canada’s workforce is the most highly educated among members of the
OECD, with half of its working-age population having a tertiary level
education.

 For the sixth consecutive year, the World Economic Forum has declared
Canada’s banking system to be the soundest in the world, it can be said
that Canada has stability financial.

Recommendation
 It would be an opportunity if TECO apply the software in Canada,
because of the advantages between Canada and The US’s relationship, in
evidence:
 The United States and Canada agree on important foreign investment
principles, including right of establishment and national treatment. The
1989 Canada-United States Free Trade Agreement (CUFTA) and 1994
North America Free Trade Agreement (NAFTA) recognize that a
hospitable and secure investment climate is necessary to achieve the full
benefits of reduced barriers to trade in goods and services. The
agreements establish a framework of investment principles sensitive to
U.S., Canadian, and Mexican interests while assuring that investment
flows freely and investors are treated in a fair and equitable manner. Both
governments are free to regulate the ongoing operation of business
enterprises in their respective jurisdictions provided that the governments
accord national treatment to both U.S. and Canadian investors.
 Canada and the United States are free to tax foreign-owned companies
on a different basis from domestic firms, provided this does not result in
arbitrary or unjustifiable discrimination
 More details, the main purposes of the Canadian-United States Free
Trade Agreement were:
a. Eliminate barriers to trade in goods and services between Canada
and the United States
b. Facilitate conditions of fair competition within the free-trade area
established by the Agreement
c. Significantly liberalize conditions for investment within that free-
trade area;
d. Establish effective procedures for the joint administration of the
Agreement and the resolution of disputes
e. Lay the foundation for further bilateral and multilateral
cooperation to expand and enhance the benefits of the Agreement.
 Canada is a signatory of the WTO Government Procurement Agreement,
and has made government procurement market access commitments
through NAFTA and the U.S.-Canada Agreement on Government
Procurement. The U.S.–Canada Agreement on Government
Procurement, which came into effect in February 2010, provides
permanent U.S. access to Canadian provincial and territorial
procurement contracts in accordance with the WTO Government
Procurement Agreement (GPA). The U.S.-Canada Agreement provided
Canadian companies with reciprocal access to 37 states subject to the
GPA, as well as a limited number of projects under the American
Recovery and Reinvestment Act of 2009.
 The NAFTA prohibits the United States or Canada from imposing export
or domestic content performance requirements, and Canada does not
explicitly negotiate performance requirements with foreign investors. For
investments subject to review, however, the investor's intentions
regarding employment, resource processing, domestic content, exports,
and technology development or transfer can be examined by the
 Canadian government. Investment reviews often lead to negotiation of a
package of specific "undertakings," such as agreement to promote
Canadian products.
 There are some recommends about price of subsidiary in foreign country.
The company should focus on transfer pricing, which mean that in what
case the company have to pay some tax, or just pay no tax, and how to get
tax repayment.
REFERENCE