Canada is the least costly place to conduct business compared with its major industrialized counterparts, despite the tempering impact of a sharply higher Canadian dollar, a new study said Wednesday.
Even with the 20-per-cent appreciation of the Canadian dollar against its U.S. counterpart last year, this country came in first in the professional services firm's ranking of 11 industrialized nations from North America and Europe as well as the Asia-Pacific region.
Australia ranked second.
Canada's business costs were about 9 per cent below those seen in the United States, although that lead was lower than the 14.5-per-cent lead reported in KPMG's 2002 study.
In terms of city rankings, all of Canada's major centres placed ahead of their U.S. counterparts, the study said. Costs in Canadian centres were between 4 per cent and 15 per cent below those seen in U.S. cities.
Of the world's major international cities -- with metropolitan populations of more than two million -- Montreal topped the list as the least expensive in terms of business costs, followed by Melbourne and Toronto.
At the other end of the spectrum, Yokohama ranked as the most expensive, followed by Frankfurt. London and New York ranked third and fifth, respectively.
“The good news for Canada is that even if the Canadian dollar were to rise in value to more than 90 cents (U.S.), Canadian cities will continue to enjoy a significant cost advantage over their U.S. counterparts,” Rob Brouwer, managing partner with KPMG in Toronto, said.
According to the report's details, salary and wage costs in Canada ranked second after Italy. Britain and France followed in third and fourth, respectively.
As well, Canada offered the lowest electricity costs among all countries. The costs for statutory holidays -- as a percentage of payroll -- was the lowest in Canada.
The 2004 study measured 27 costs -- including labour, taxes and utilities -- applied to business operations in 11 counties. The research included an analysis of those costs in 98 cities around the globe.
The basis for comparison in the study was the after-tax cost of start-up and operation for 12 types of business, over a 10-year period.
In the overall ranking, the United States placed seventh, but also experienced the greatest improvement in cost competitiveness compared with the previous year's study. The gain were largely the result of a weaker U.S. dollar against world currencies. Wednesday's report called the weaker U.S. dollar the most important factor affecting international business competitiveness during the study period.
Japan and Germany were the most expensive countries to do business in of the 11 nations surveyed. As the most expensive, Japan's business costs were 24 per cent higher than those in the United States, which was used as the baseline comparison.
Even with the 20-per-cent appreciation of the Canadian dollar against its U.S. counterpart last year, this country came in first in the professional services firm's ranking of 11 industrialized nations from North America and Europe as well as the Asia-Pacific region.
Australia ranked second.
Canada's business costs were about 9 per cent below those seen in the United States, although that lead was lower than the 14.5-per-cent lead reported in KPMG's 2002 study.
In terms of city rankings, all of Canada's major centres placed ahead of their U.S. counterparts, the study said. Costs in Canadian centres were between 4 per cent and 15 per cent below those seen in U.S. cities.
Of the world's major international cities -- with metropolitan populations of more than two million -- Montreal topped the list as the least expensive in terms of business costs, followed by Melbourne and Toronto.
At the other end of the spectrum, Yokohama ranked as the most expensive, followed by Frankfurt. London and New York ranked third and fifth, respectively.
“The good news for Canada is that even if the Canadian dollar were to rise in value to more than 90 cents (U.S.), Canadian cities will continue to enjoy a significant cost advantage over their U.S. counterparts,” Rob Brouwer, managing partner with KPMG in Toronto, said.
According to the report's details, salary and wage costs in Canada ranked second after Italy. Britain and France followed in third and fourth, respectively.
As well, Canada offered the lowest electricity costs among all countries. The costs for statutory holidays -- as a percentage of payroll -- was the lowest in Canada.
The 2004 study measured 27 costs -- including labour, taxes and utilities -- applied to business operations in 11 counties. The research included an analysis of those costs in 98 cities around the globe.
The basis for comparison in the study was the after-tax cost of start-up and operation for 12 types of business, over a 10-year period.
In the overall ranking, the United States placed seventh, but also experienced the greatest improvement in cost competitiveness compared with the previous year's study. The gain were largely the result of a weaker U.S. dollar against world currencies. Wednesday's report called the weaker U.S. dollar the most important factor affecting international business competitiveness during the study period.
Japan and Germany were the most expensive countries to do business in of the 11 nations surveyed. As the most expensive, Japan's business costs were 24 per cent higher than those in the United States, which was used as the baseline comparison.
