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Corporate Profit Margins Case Analysis

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“Corporate profit margins hit 3-decade high on falling loonie, labour costs” Dana Flavelle, Economy, Tuesday March 31, 2015 Summary- In spite of plunging oil price and slow of Canadian economic growth rate. The reason of higher profit margins is structural changes in the economy, such as low interest rates, decreased unionization and globalization. Canadian exports have competitive because of a lower dollar. The higher profits will eventually lead companies to invest and expand and create jobs. Most of the increase profit margins have occurred since 2012. The lift to profit margins is in the agriculture, manufacturing and transportation. Also, the labour cost growth is decreasing in 2014. (88 words) Analysis- The falling loonie and labour costs
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