Executives who were interviewed were asked about the foreign investment approval process in their companies. Almost all said that the process had become much more rigorous and centralized in the past few decades. Local subsidiaries now have relatively little capacity to invest in new facilities without going through the centralized process. This process looks at strategic fit, risk factors and anticipated rates of return, and it entails several stages, from staff analysis to senior management (and frequently board) approval. The process has come to rely heavily on data, as well as analysis of the current policies of potential host governments and of the capacity of local suppliers and the local workforce to meet the global company's requirements. It also depends more on the perceptions of senior executives in the parent company and less on the local knowledge of subsidiaries.
Canada occupies a small place in the world economy, and foreign investors can often overlook it when selecting their next fixed investments. It could take all the actions outlined above and still fall short of improving its share of global FDI. The point was made several times during the interviews that Canada does not do a good job of communicating its strengths to the world at large. This shortcoming has become more serious with the centralization of the global investment review process in the parent head office: a number of interviewees felt this has contributed to the decline in Canada's ranking as an investment destination. While defining and building on our strengths, we will also need to let global investors know what we have to offer and that we are open for business.