Foreign Buyers Research Articles

ОСОБЛИВОСТІ МАРКЕТИНГОВОГО ЦІНОУТВОРЕННЯ ПРИ ЗДІЙСНЕННІ ЗОВНІШНЬОЕКОНОМІЧНОЇ ДІЯЛЬНОСТІ В УМОВАХ ВІЙСЬКОВОГО СТАНУ

The dynamics of export and import volumes of goods and services of Ukraine for the period 2011-2021 were analyzed. The structural features of Ukraine's foreign trade in 2022 were studied. Ukraine imported the most goods from such countries as China, Poland and Germany. The main imported goods were: machines, equipment and transport; fuel and energy products; products of the chemical industry. Most Ukrainian exports went to such countries as Poland, Romania and Turkey. The top three most exported product categories include: food products; metals and their products; machines, equipment and transport. Factors affecting the process of marketing pricing in the implementation of foreign economic activity are systematized. It was found that one of the main problems faced by enterprises as subjects of foreign trade in their activities with foreign counterparties is the lack of an effective system of stimulating foreign buyers as an element of the price strategy of foreign economic activity. Another problem is the gradual loss of effectiveness of the strategic tools used to form export prices during foreign economic operations. It is proposed to introduce a system of discounts to improve the efficiency of foreign economic activity. Thanks to an effectively developed system of discounts, it is possible to achieve additional benefits for the enterprise; advantages over competitors; image enhancement; stimulation of product sales, i.e. support of demand. It is noted that modern business entities do not have sufficiently effective practical and methodical approaches to the process of creating prices in the long term. It was found that the most popular method of pricing in the practice of domestic enterprises is the cost method. However, such an approach to the implementation of strategic marketing tasks and an incorrectly applied price mechanism quite often causes the company to lose its share of the competitive market. In order to overcome the mentioned problems, as well as to increase the efficiency of foreign exchange, domestic companies are suggested to use a combined method of pricing, which will make it possible to take into account most of the price-forming factors of the internal and external environment.

La adquisición de bienes inmuebles por compradores extranjeros en zonas costeras y fronterizas de México (2008‐2019)

Numerous studies discuss the impact generated by the influx of foreign buyers onto the real estate markets of coastal and tourist towns. However, estimates on the number of buyers, their degree of concentration in the territory, the type and size of the property acquired, are hard to calculate due to both conceptual difficulties and empirical limitations. This work examines the market of foreign buyers in the coastal and border areas of Mexico from a quantitative approach based on the records of the Ministry for Foreign Affairs (MFA) from 2008‑2019. The analysis reveals a high concentration of foreign buyers in a group of localities as well as variations between destinations regarding buyers’ nationality and the average area of the purchased property. These findings contribute to the discussion on the “alienation” of local space from different perspectives such as residential tourism, north‑south migration and land grabbing.

Komunikasi Pemasaran Pengrajin Bambu Kreatif di Tasikmalaya

Tasikmalaya known as the centers of bamboo handicraft industry in West Java. It produces various products, from daily household equipment in the form of rough woven with low prices to creative bamboo products with high prices for the upper middle market. Products are distributed for domestic needs and demand of foreign buyers. This study reveals the marketing communication behavior of creative bamboo entrepreneurs in Tasikmalaya in developing a creative bamboo craft business. A qualitative method with a case study approach was used to obtain information about the behavior of bamboo handicraft entrepreneurs in Tasikmalaya in marketing their products. Data were collected through in-depth interviews with creative bamboo entrepreneurs who still actively running their businesses and willing to provide information about the businesses they are running. Data were also collected through non-participatory observations at the location and conducted a literature review and documents related to the research. Data analysis, data checking and validity of the data were conducted through Miles and Huberman's interactive data analysis concept. The results showed that the communication behavior conducted by creative bamboo entrepreneurs consisted of internal communication behavior and external communication behavior. Internal communication behavior is conducted on workers with the principle of kinship. Humanist approach is used to maintain production stability.The form of external communication behavior is tailored to whom they're being faced. Face-to-face communication and mediated communication are used in marketing bamboo handicraft products.

Russian merger control: in favor of foreign companies?

PurposeThe paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.Design/methodology/approachThe discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.FindingsThe study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.Originality/valueThe paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

Wroclaw Electronic Works: Wrocławskie Zakłady Elektroniczne „Elwro” 1959–2000

Abstract Based on the research potential of the Wrocław higher education center and its achievements in mathematics and automation, Wrocławskie Zakłady Elektroniczne “Elwro” was launched in the capital of Lower Silesia, in the late 1950s. Starting with the production of relatively simple electrotechnical devices, the company transformed in just a few years into a manufacturer of digital machines of its own design, “Odra”. They have found wide application in science, administration, communication and industry − both in Poland and abroad, mainly in the Comecon member states. The 1970s were the period of the peak development of WZE “Elwro”, in which apart from devices of its own design, computers belonging to the so-called Uniform System of Digital Electronic Machines of Comecon countries, were also being produced. The effects of the economic crisis of the 1980s abruptly reduced the orders for computers produced in “Elwro”, and their development and production was slowed down by problems with obtaining materials that were scarce in the country and foreign currency for foreign purchases. The technological distance between the “Elwro” offer and the equipment manufactured in the leading countries of the West was growing. After the start of the system transformation in the country, the management of “Elwro” attempted to carry out radical organizational transformations and grant the company the status of a joint-stock company. However, they were held back for too long by both the lack of government support and the concerns of the works council. Meanwhile, deteriorating economic results forced the management of “Elwro” to reduce employment and sell more and more assets. Ultimately, in 1993, the plants were transformed into a sole-shareholder company of the State Treasury, and then sold to the German concern “Siemens”. For the new owner, the only thing that mattered was the access to the Polish telecommunications market obtained in this way. He did not use the still existing human resources and production potential of “Elwro” and, shortly after the purchase, practically liquidated the company. In 2000, its remains were sold to the American telecommunications company “Teletec Holding”, which changed the name of the company to “Teletec Polska” S.A.

İstanbul’da Hazır Giyim İhracatına Yönelik Üretim Yapan İşletmelerin Covid-19 Pandemisi Nedeniyle Ortaya Çıkan Üretim ve Tedarik Sorunlarının İncelenmesi

The ready-to-wear sector, which is the most important and old industry branch for development in the world economy and still one of the important production and export branches of our country, has an important place in development since history. With the Covid-19 pandemic, which spread severely in the world between March and April 2020, broad layers of society were affected by health, and business life also reveals the consequences of the negative effects it has received in the medium and long term. The ready-made clothing sector, which is one of the labor-intensive sectors in our country, is also one of the affected production branches. In order to manage the risks arising from the restrictions of production branches that have a direct impact on the economy, a strategy that will be formed between the health of the employees and the demands of foreign buyer companies has arisen. The strategy to be developed in this direction is directly related to the ability of enterprises to adapt to new situations brought along by extraordinary conditions. All businesses, regardless of their size, faced serious difficulties, especially in this process. Low cost and quality, as well as standardizations, which are the two basic conditions of competing in the foreign market, are important in terms of coping with success and competition in international markets, especially due to the limited number of buyers, namely customers, and the infinite number of companies and products. Although the probability of occurrence is low, pandemics can reach millions of people depending on their impact and the rate of spread. Covid-19 has affected the flow of daily life, and demand-side distortions have also emerged with supply-side disruptions due to reasons such as employees' inability to go to work, disrupted and canceled raw material supply, and changes in consumer preferences. Production was quickly affected by the epidemic due to reduced working hours and job losses, and many manufacturers came to the point of bankruptcy. In the pandemic, the textile industry has reduced the production capacity of people due to the rapid decrease in demand by easily abandoning shopping and consumption, part-time production has been started or production has been stopped, but only a few have tried to go through this process by producing masks, overalls and bonnets. In this research, the difficulties faced by the enterprises that make production for ready-to-wear export in Istanbul and apply restrictions during the pandemic process will be examined. Difficulties encountered; production process, worker health, transportation and raw material supply. The data collection methods of the research, as well as the review of the relevant literature, will be analyzed by converting the data obtained from the twenty-question interviews and observations made with the company managers of 15 companies operating in Istanbul belonging to the sector, as a result of the descriptive analysis Nvivo program. Keywords: Ready-to-Wear, export, Istanbul, Covid 19, Production, Supply

Foreign Portfolio Investment and Earnings Quality: Evidence from Sri Lanka

The development flows signs renewed foreign interest in the stock market during mid-2017, recording an all-time high in foreign purchases. With the realization of investment opportunities and potential in capital markets in Sri Lanka, foreign investors actively participated in trading in CSE making volatility in Foreign Portfolio Investment (FPI), which lead the researcher to investigate the determinants of FPI under company performance (ROA, ROE and OPM), market-specific factors (MC, MI and BETA), earnings quality (EQ) measured by total accruals (TA) and macro-economic variables (IR and GDP) using evidence from Sri Lanka. Using the three dependent variables of TNFP, TFP, and TFS the researcher analyzed quarterly data for the period from 2011 to 2016 under panel data regression model and concluded, ROE, MC, MI, BETA, GDP Growth and IR has a significant relationship with foreign portfolio investment where the results suggested earnings quality does not have any impact on foreign portfolio investment. The findings of the study are especially useful for potential investors, regulators and the interested parties of investment decisions.

Foreign buyer taxes and house prices in Canada: A tale of two cities

In August 2016, the government of British Columbia imposed a tax of 15% on foreign entities buying residential property in Vancouver. A similar tax was imposed in Toronto in April 2017. This paper empirically evaluates the effects of foreign buyer taxes (FBTs) on house prices in Vancouver and Toronto, using a variant of the panel program evaluation method with city-level data and a regression discontinuity design method with house-level transaction data. Our results show that the FBT reduced the house prices in Vancouver by around 5% from 2016:M08 to 2017:M12, and by something within the range of 7% to 9% in Toronto from 2017:M04 to 2017:M12. These effects were concentrated in the single-detached home segment in both cities.

Transforming Korean business? Foreign acquisition, governance and management after the 1997 Asian crisis

ABSTRACT The surge in cross-border acquisitions of Korean businesses, following the 1997 Asian Crisis, raised strong debates about the strategic motivations of foreign investors and the failings of selling firms. This article assesses their impact on the governance, management, and competitiveness of the resulting joint ventures and newly-formed enterprises. Contrary to local perceptions, ‘fire-sales’ and financial opportunism had not motivated foreign buyers, which sought to transform their acquisitions. Nor does government pressure to reform or poor liquidity fully explain the strategies of their Korean counterparts. Through case studies, the article provides insights into the long-term development of governance and management in Korean business.

Signalling Strategies of Exporters on Internet Business‐to‐Business Platforms

AbstractThe emergence of Internet business‐to‐business (B2B) platforms offers exporters an effective and low cost means to meet the needs of their foreign buyers. However, the online marketplace is noisy and crowded, and the information asymmetry between exporters and foreign buyers is significant. Little research has been done to investigate how exporters can best use these different platform services and their boundaries and conditions. Drawing on signalling theory, we categorize an exporter’s use of platform services as marketing‐ and trade‐risk‐focused services (less and more credible signals, respectively). We further investigate how these platform services influence export sales in different institutional environments, specifically exploring the moderating roles of formal and informal institutional distance between the home and host countries. We test our hypotheses using a unique dataset made up of survey and archival data on Chinese exporters’ using Alibaba.com. Findings indicate that using marketing‐ and trade‐risk‐focused services positively affect export sales performance. The effect, however, is contingent on the differences in the formal and informal institutional environments between home and host countries. Trade‐risk‐focused services are more pronounced under greater formal and informal institutional distance. In contrast, marketing‐focused services are less pronounced under greater informal institutional distance. Taken together, our findings extend signalling theory to an online and international context. We deepen our understanding of how firms can utilize online signals with different levels of credibility and of how differences of institutional environments differently impact their effectiveness. We also advance corporate strategy literature by highlighting the importance of geographic markets and institutional differences in shaping firm’s online signalling strategies.

Investors’ Trading Activity and Information Asymmetry: Evidence from the Romanian Stock Market

This paper examines the problem of information asymmetry between foreign, local, institutional and individual investors on the Bucharest Stock Exchange (BVB) for the period 2004–2011. Using monthly returns for individual companies listed on BVB, stock market indices during the seven years period, as well as aggregate data on foreign and domestic investors (both institutional and individual) sales and purchases on the Romanian stock market, this research intends to provide an answer to the following question: Are foreign investors better informed than the domestic ones and continually achieve higher rates of return on the Romanian stock market? We compare the information advantage of the different investors’ categories by separating the stock in our data sample into two categories, namely blue-chips stocks (mostly stocks that are part of the BET index, and also containing one international stock, Erste Bank), and “regular” stocks. Subsequently, we study the explanatory power for stock returns of potential impact factors, which reflect the monthly net position of four groups of investors on the Romanian Stock market (Purchases-Sales) by employing multivariate regression models and a five variable VAR system. Ultimately, we are interested in whether investors in one particular category are consistently net buyers just before stock returns increase and are net sellers before stock returns decrease, thus suggesting they have an information advantage as compared to the domestic ones. Our aim is to provide robust empirical evidence on the nature of investors’ information asymmetry by utilising a unique data set and directly assessing relevant inter-relationships.

Czy Alpy są dla turystyki? 150 lat krytyki ruchu turystycznego

The term “tourist” appeared in English in the late eighteenth century and spread to other European languages in the first half of the nineteenth century. The corresponding sector first appeared in German as Fremdenverkehr. Since the 1970s, the neutral, internationally used term “tourism” has become the standard for the mobility industry. The industry is unique and in some aspects unlike any other industry. Foreign buyers of tourist services are not only customers of specific tourism companies, but also guests of tourist regions. They move within an environment created by others and sometimes appropriate the public space of this area, especially by participating in the expansive mass tourism. This has recently led to the emergence of the term “overtourism”. It is associated with a need to reduce the burden of some fashionable tourist regions caused by an excessive influx of tourists. The Alps are one of those regions in which tourism developed as an industry already in the nineteenth century. The number of tourists in this European mountain range — initially especially in Switzerland — grew considerably particularly after 1850. The period was marked by a rapid development of infrastructure in the form of modern forms of transport, accommodation and other services. Tourism became an indicator and factor in civic “progress”. Yet at the same time there appeared voices questioning this development. The author of the present article discusses three examples from various spheres, periods and regions illustrating the history of the growth of tourism in the Alps. The first part is devoted to literature, specifically to a satirical journal of a journey to Switzerland, published for the first time in 1880. The second part deals with science, drawing mainly on the work of a French geographer and her writings from 1956–1971. The third part concerns tourism policy in recent years in a fashionable Austrian village in the Alps.

Gehören die Alpen dem Fremdenverkehr? 150 Jahre Tourismuskritik

The term “tourist” appeared in English in the late eighteenth century and spread to other European languages in the first half of the nineteenth century. The corresponding sector first appeared in German as Fremdenverkehr. Since the 1970s, the neutral, internationally used term “tourism” has become the standard for the mobility industry. The industry is unique and in some aspects unlike any other industry. Foreign buyers of tourist services are not only customers of specific tourism companies, but also guests of tourist regions. They move within an environment created by others and sometimes appropriate the public space of this area, especially by participating in the expansive mass tourism. This has recently led to the emergence of the term “overtourism”. It is associated with a need to reduce the burden of some fashionable tourist regions caused by an excessive influx of tourists. The Alps are one of those regions in which tourism developed as an industry already in the nineteenth century. The number of tourists in this European mountain range — initially especially in Switzerland — grew considerably particularly after 1850. The period was marked by a rapid development of infrastructure in the form of modern forms of transport, accommodation and other services. Tourism became an indicator and factor in civic “progress”. Yet at the same time there appeared voices questioning this development. The author of the present article discusses three examples from various spheres, periods and regions illustrating the history of the growth of tourism in the Alps. The first part is devoted to literature, specifically to a satirical journal of a journey to Switzerland, published for the first time in 1880. The second part deals with science, drawing mainly on the work of a French geographer and her writings from 1956–1971. The third part concerns tourism policy in recent years in a fashionable Austrian village in the Alps.

Macroeconomic policy-induced wealth effects on Chinese foreign housing investments

The unpegging of China's currency in 2005 creates positive wealth effects that trigger Chinese foreign buyers' responses to pay 3.42% more in housing prices relative to other foreign buyers. We find evidence of a higher propensity to purchase housing units with more visible features among Chinese foreign buyers after the policy shock relative to other foreign buyers. Chinese foreign buyers pay 11.0% premiums for high-floor units, 7.25% premiums for large units and 4.61% for luxury (more expensive) units after experiencing positive incomrtde shocks. We find that conspicuous consumption motives are augmented in high-income neighborhoods and neighborhoods with strong enclaves and social networks comprising residents from China. We show that conspicuous consumption motives are more significant for Chinese foreign buyers who are owner occupiers than for those who are investors. The results survive a slew of robustness and falsification tests, and we cannot reject the finding of wealth-induced conspicuous consumption by Chinese foreign buyers in Singapore's private housing market.

Does too much finance suppress a country’s participation in the global value chains?

ABSTRACT Using a dynamic panel threshold model, we find a nonlinear effect of financial development on participation in the global value chains for 92 countries. The effect is positive below a threshold and turns negative above it. We provide evidence supporting our explanation that when a country’s financial system develops to a certain level, it serves foreign buyers by engaging more in outward foreign direct investments instead of enhancing its participation in the global value chains.

Determinants of choosing a foreign brand in emerging economy: lessons and implication for the local entrepreneurs

Purpose It is evident that the local small and medium enterprises of Bangladesh suffered in the competition because of the strong presence of foreign brands in the market. The purpose of this study is to figure out the factors influencing consumers to purchase a foreign brand predominantly among young consumers. Design/methodology/approach It is a quantitative study considering 257 young demographics as respondents. They are drawn randomly. Confirmatory factor analysis, regression analysis and a path model of structural equation model using AMOS graphics software are used in this study to analyze the data. Findings This study finds two out of three identified variables are influencing the foreign product purchase for the young Bangladeshi consumers. Brand value and product features of the given foreign product are the most dominant factors behind this adoption. However, a significant relationship between product quality and brand choice is not evident in this study. Research limitations/implications It will give a clue to the small or medium startup of the country that normally target the young customer but face challenges to understand their mind and sometimes lagging because of the strong presence of the international brands. Originality/value A comprehensive review of the literature suggests that not so many studies took place that determines the respective factors behind the purchase of foreign brands particularly among young demographics of a lower middle income developing nation.

Impact of Organizational Practices on Perceived Work-life Balance of Mid-level Employees at Garments Industry in Bangladesh: A Preliminary Study

One of the most all-time contemporary issues of the RMG sector in Bangladesh is employee dissatisfaction due to the less scope of work-life balance of the workforce although the government and the foreign buyers are being focused on securing compliances regarding the issue in recent years to make the entire workforce’s work-life smoothen. It is unfortunate that the organizations are focusing only on the low-cost employees such as workers and entry-level employees regarding this issue and are paying little attention to the mid-level workforce, who are playing the role as a pillar of managing the whole practices of the organization. As a result, job dissatisfaction among mid-level officials is heightening rapidly. The study worked on exploring this issue. The study has been conducted on 166 mid-level officials of the different RMG organizations from Dhaka, Gazipur, Savar, and Narayangonj. A close-ended questionnaire was prepared to collect the primary data and published journal articles and conference papers are the sources of secondary data collection. IBM SPSS 20.0 software has been used to analyze the collected data and standard multiple regression analysis has been done to pick the results. The results of this study highlight that physical & mental stress highly impacts the employee’s personal satisfaction whilst organizational environment have high impact on employee’s workplace satisfaction and physical & mental stress, work hour, and organizational environment is impacting significantly the employee’s organizational commitment as well. Besides, the study also reflects those other organizational practices relating to continuous work after office hour, compressed weekend, work-family climate, and work from home also impact the employee’s work-life balance whereas teleworking and leave and holiday consumption practices do not impact significantly

Impact of novel coronavirus pandemic on aquaculture and fisheries in developing countries and sustainable recovery plans: Case of Bangladesh

Like most sectors, the aquaculture and fisheries sector especially in developing countries like Bangladesh is believed to have been severely affected by this unique coronavirus (COVID-19) pandemic. To overcome the adverse impacts of COVID-19, the aquaculture and fisheries economy needs urgent recovery plans which this study focusses on using a mixed-method including online questionnaire surveys, face-to-face and telephonic interviews and focus group discussions during June – November 2020. This study reveals some positive impacts on ecosystem and fish stock (e.g., increase in fish stock) due to less disturbance of fishing activities, but that are not able to bring societal benefits as all the fisheries sub-sectors are affected differently by the pandemic. There are disrupted transportation systems and increased transportation costs (around 20 – 60% higher than normal), more input and maintenance costs and less demand for/and decreased market price of fish. There are also shortages of labourers and reduced patrolling to implement fishery regulations. Cancellation of orders by foreign buyers has seriously affected the shrimp and crab sub-sectors. The fisheries-dependent people’s capital assets and activities have been mostly negatively affected resulting in a worsened livelihood. This study has suggested a set of immediate and long-term changes to policy and action plans to recover this sector and sub-sectors from the pandemic considering economic, social and environmental sustainability. The findings of this study may have important implications not only for Bangladesh but also for other fisheries dependent developing countries with similar impacts by the virus like in South Asia.

Chinese property developers after the decline in foreign real estate investment in Sydney, Australia

This study investigates how Chinese developers responded to the changing patterns of investment in residential real estate in Sydney since 2010. The analysis also outlines the key lessons for cities around the world with high levels of Chinese foreign buyers and developers, which may experience a similar foreign real estate investment decline as a result of changing dynamics in domestic real estate markets, changes in China, and/or wider changes in the global economy or other key global events. Unlike Chinese individual foreign real estate investors who largely exited the real estate market after 2017, Chinese property developers remained committed to the domestic market in Australia. As such, this analysis is framed by a period of individual foreign capital withdrawal and is focused on foreign developers rather than individual foreign real estate investors. The paper argues that focusing on the actions of foreign developers in a domestic real estate market is important because the organisational structure and business practices of foreign developers can be vastly different to those of domestic developers. The analysis shows that since 2017 Chinese developers responded in two ways to the changing residential real estate market in Sydney: (1) they revised their sales strategies to target different customer groups; and/or (2) they changed their building practices.

Reversing the decline of Canadian public markets

It is the best of times for Canada’s public markets, it is the worst of times for Canada’s public markets. It is an age when markets have been rewarding public companies with the highest valuations seen in generations. It is an age of a rapid decline in Canadian companies opting to go public. Given that Canada’s reliance on public markets is far higher than that of any other country — double that of the next-highest country — we should be alarmed that fewer and fewer companies are choosing to go public. Companies that stay private are, on average, less successful, less productive, less likely to grow into national champions, and more likely to be sold to foreign buyers. The current decline of public markets may go to the heart of what is arguably the biggest long-term policy issue in the country: our innovation gap and declining relative productivity growth. There is no shortage of advantages for a company to go public. Public companies grow faster, grow larger, become both more productive and efficient, and have cheaper access to capital. An IPO permits early investors to exit while allowing managers to continue to build the company. What is evidently causing more and more Canadian executives to avoid going public, despite all these advantages, is a regulatory and governance ecosystem that has grown increasingly hostile to and distrustful of corporate leadership. Executives who consider going public face an environment in which their compensation levels will be high; indeed, pay for senior executives at public companies has grown remarkably in recent years. However, because of increasingly onerous regulatory disclosure requirements, earning those rewards comes at the cost of having their pay disclosed to the public, debated by shareholders and scrutinized by the media. Companies that go public also face a growing loss of control over their own governance due to pressure to adhere to an ever-evolving list of so-called universal best practices that can run dozens of pages long. These practices exact costs but don’t generally improve results. The result is a dominant one-size-fits-all governance model that does not in fact fit many, or even most companies. The key factor creating this hostile environment is a massive intrusion by outside forces on the powers traditionally exercised by boards and executives. Corporate governance used to arise from the bargaining and experimentation of the private parties that coalesce around corporations. Now governance is frequently imposed ex post on public companies by third parties with their own agendas. Particularly problematic are third-party commercial proxy advisors, ostensibly representing the interests of institutional shareholders. Their short-term, faddish, complex, and value-harming governance practices diverge dangerously from the interests of long-term flesh-andblood investors. The innovations over the past three decades in governance rules were designed to reduce agency costs and improve corporate performance. Those that have proven failures at doing so, and there are several, should be scrapped. Rather than helping Canada’s markets become stronger, public markets have grown substantially weaker, and rather than making Canadian companies better, we now face an environment where companies would rather sell to a foreign buyer and leave the country, than go public here. The repercussions can only be adverse for Canada.