Page 115 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 99-119

Going forward, we envision that an agreement like FIPA, plus moderate concessions by the

Chinese with respect to the Manulife and Scotiabank deals, as key to developing trust. We

see the Harper government clearly delineating what the “net benefit to Canada” criteria

will look like as enhancing the perceived benefits of FDI. Much like a Pareto

improvement, no stakeholder can be made worse off when China seeks to improve its

image to better attain social license to invest.

Social Licence to Invest

Required Perceptual Changes to
Enhance Trading Relationship

Note1: Vertical line represents Perceived Trustworthiness of Investing Partner
Note2: Horizontal line represents Perceived Benefits of Investment

Figure 7: An illustration of how we feel China is generally perceived in Canada as a

function of two attributes. Change is required to the perception of trustworthiness and net

benefit that will be required to facilitate a more open trading climate between China and Canada.

Clearly, not all recommendations can be encapsulated in a two-dimensional perceptual

map. As such, the following seven recommendations also ought to be considered to help

maintain an optimal Sino-Canadian trading relationship.

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