Mergers and acquisitions activity helps lessen trade deficit

The trade deficit in the country is getting smaller, according to government statistics. Some of that, experts believe, can be attributed to direct investment in Canada due to increased mergers and acquisitions activity, but also reflects a narrower deficit on goods, according to recent Statistics Canada numbers. The trade deficit is now at the lowest it has been since 2008.

Direct investment in Canada increased to more than $21 billion in the second quarter of last year, up from $12 billion in the first quarter. Statistics Canada said foreign mergers and acquisitions in the country is the chief reason for the increase. Much of that activity was in the insurance and finance sectors.

Canadian companies choosing to invest abroad did so mainly in the United States and in the United Kingdom. Those who chose to invest directly in the Canadian economy did so mainly in the energy and mining industries. Economists said the deficit actually narrowed more acutely than what was expected.

Mergers and acquisitions deals can have an effect on many other areas of business and the economy. A lawyer may be able to help his or her clients to make these types of deals. These types of transactions can be complex and a lawyer can work with a client to secure financing, to draft contracts and to ensure all laws are adhered to in the making of these deals. Mergers and acquisitions often take rounds of negotiations and an experienced attorney may also be able to assist a client in this regard as well.  

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