Businesses are Feeling the Effects of Rising Interest Rates

With interest rates continuously on the rise as of late, businesses are feeling some negative effects. These trends spell trouble not only for businesses, but also for the economy as a whole. Higher rates mean it costs businesses more to borrow, which can lead to less investment and slower growth.

This is a particularly challenging time for small businesses and start up companies as they have been forced to pay a lot more for loans. Without this funding, the percentage of failure among start ups will begin to rise and we’ll see the effects of this as growth levels stagnate. Inflation is also making it harder for businesses to make a profit, especially in industries where prices are volatile.

Millions of business owners around the world are combating the effects of high interest rates by reducing their monthly expenses and saving money where possible. Consolidating debt is a good option as refinancing student loans with NaviRefi can help the borrower to secure a lower interest rate and better repayment terms. Higher rates mean that those who save money are earning more interest, which can help stimulate the economy.

Higher rates also mean that savers earn more interest on their deposits, which could encourage people to save more money. This could reduce consumer spending and overall economic growth. The effects of this are disastrous for businesses who hope to utilize successful growth strategies to the best of their ability. Some will have to lay off workers. Others will have to cut back on production and slash prices. All of this can lead to bankruptcies and closures.

Higher rates can lead to a slowdown in the housing market as people can\’t afford to buy homes any longer. Rising interest rates are typically followed by a slowdown in the housing market. This happens because as interest rates increase, it becomes harder for people to afford to buy homes. This could lead to a decrease in home prices and a slowdown in housing sales. In addition, higher mortgage rates can also lead to fewer people qualifying for a mortgage, which can also lead to a slowdown in the housing market.

Construction companies are typically one of the first industries to feel the brunt of a slowdown in economic growth. This can be due to a number of reasons, such as a decrease in the demand for their services, less available funding for projects, and higher labor costs. A strong dollar makes US goods more expensive overseas, which can lead to a decline in exports. A strong dollar can have a negative impact on U.S. exports.

When the dollar is strong, it takes more of another currency to buy a U.S. dollar, which makes U.S. goods more expensive overseas. This can lead to a decline in exports as foreign buyers may switch to cheaper alternatives in China or simply purchase fewer American-made products. Imports are cheaper too, which can lead to an increase in consumption and higher prices for domestic goods.

Its impact on the cost of goods and services can be disastrous for businesses. There are a few different ways that businesses can be affected by rising inflation. The main way is through changes in the cost of goods and services. When prices go up, businesses may have to increase the prices they charge in order to make a profit. This can lead to customers being less likely to buy products or services, especially if they are not essential items.

Businesses may also have to pay more for materials or labour, which can cut into their profits even more. Additionally, if inflation is high for an extended period of time, it can cause the value of money to decrease. This means that businesses will receive less when they exchange money for goods or services. All of this leads to less profit, higher failure rates, the need for more borrowing and more foreclosures.

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Crypto Regulation in Canada in 2022

Introduction

Within the financial landscape of our society, digital currencies are unquestionably growing more widespread and pervasive. In addition to the rise in cryptocurrency acceptance rates worldwide, Canada has had some success in regulating virtual currency.

Cryptocurrencies are not regarded as legal cash in Canada. Only fiat money issued by the Bank of Canada and the Royal Canadian Mint will be considered as lawful currency.

Token-based digital currencies known as “CBDCs” (Central Bank Digital Currencies), which may support the online payment industry, have been tested by the Bank of Canada, the nation’s central bank.

Sales Regulation of Security

The sales regulations for cryptocurrencies in Canada in 2022 are the first thing to be aware of. In contrast to federal law making, provincial and territorial governments in Canada enact securities laws.

The securities laws in all of the provinces have, however, essentially been standardized. All provincial and territorial securities regulators are represented by the Canadian Securities Administrators (CSA), which is the organization responsible for the securities rules.

As previously established, Cryptocurrencies satisfy the four criteria of the “Investment Contract Test” and are therefore regarded as a security under Canadian securities law. The four components of the contract are as follows: there must be a monetary investment; there must be an expectation of profit; there must be participation in a common enterprise; and the success or failure of the investment is significantly influenced by efforts made by parties other than the investor.

The CSA has made numerous notifications and statements on various subjects pertaining to the potential application of securities rules to cryptocurrency offerings (CCOs). Any offerings that fall inside the policies or objectives of the securities act, in this case, any digital coins or tokens included, would also be subject to securities laws, according to the CSA, in addition to its non-exclusive list of securities indicated in the securities act.

The CSA has also stated that platforms, often referred to as Crypto-Asset Trading Platforms (CTPs), that provide and assist the buying, selling, or exchange of crypto-assets will also be subject to securities regulation.

Prior to the legal distribution of securities in Canada, a prospectus must be submitted, authorized, and registered with the Canadian securities regulators, with the exception of any applicable exemptions.

According to the Canada cryptocurrency regulation, cryptocurrency reporting issuers can fulfil their disclosure requirements by providing the following information: a description of the issuer’s business, including any reliance on third-party services, the risk to the issuer’s business, any significant changes to the issuer’s business operations, the issuer’s compliance with cryptocurrency accounting and auditing standards, the preventative measures taken to prevent theft or loss of crypto-assets, and the issuer’s of cryptocurrency.

Tax Treatment for Cryptocurrencies

The second thing to be aware of is that, for the most part, there will still be a high amount of uncertainty and scant regulatory advice about cryptocurrency regulation in Canada in 2022. Currently, the Canada Revenue Agency (CRA) maintains that cryptocurrencies are not “currency” for income tax purposes.

It is comparable to a commodity, though intangible, in that its value can change depending on factors like supply and demand as well as investor emotion. It makes more sense to compare cryptocurrencies to a publicly traded security or precious metals like gold and silver, given their characteristics.

However, a lot of the study done so far about the possible tax treatment of cryptocurrency-related transactions in Canada is based on extrapolations and speculative estimates, leaving little room for judgment.

The CRA states that while owning or holding cryptocurrencies is tax-free, selling, trading, exchanging, or converting them may have tax repercussions. If you are looking for a best way to invest in crypto assets CEX.IO’s free BTC wallet has you covered.

What are MSBs and its Requirements

The third and final point to be aware of regarding the regulation of cryptocurrencies in Canada in 2022 is that companies that deal in cryptocurrencies fall under the category of “Money Services Businesses” (MSBs), which are subject to additional regulations under the “Proceeds of Crime (Money Laundering and Terrorist Financing Act (PCMLTFA)”. Businesses that deal in virtual currency are categorized as MSBs and must register with Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).

As an MSB, you are generally required to establish a compliance program in accordance with financial standards, report various reports, record transactions, and identify clients. According to the PCMLTFA, FINTRAC must receive reports of big fund transactions, suspicious transactions, and terrorist property.

Conclusion

Despite the fact that Canada’s cryptocurrency regulations work to centralize the underlying decentralized technology and may deter potential users, Canadians should be optimistic about the future of cryptocurrencies in their nation.

The Canadian government has realized the potential advantages and taken decisive action to adopt the technology. The government may need some time to find a good balance between instilling fear and promoting innovation.

To safeguard themselves and their businesses until the government’s concerns subside, crypto users should become well-versed in the tax laws and regulations.

Canada Finance

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Canada Adopts Joint Statement On Cooperation On Global Supply Chains

Supply Chain

The following is the Joint Statement of the 2022 Supply Chain Ministerial Forum released by U.S. Secretary of State, Antony Blinken, and U.S. Secretary of Commerce, Gina Raimondo, on behalf of partner economies, including Canada. The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, signed the statement on behalf of the Government of Canada, at a virtual plenary session earlier today.

“The shocks to global supply chains from pandemics, wars and conflicts, extreme climate impacts, and natural disasters have put in stark relief the urgent need to further strengthen supply chains, to work to reduce and end near-term disruptions, and to build long-term resilience. This is a global challenge we intend to approach resolutely and cooperatively.   

“Australia, Brazil, Canada, the Democratic Republic of the Congo, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Netherlands, the Republic of Korea, Singapore, Spain, the United Kingdom, and the United States (hereinafter the “Participants”), following engagement at the 2022 Supply Chain Ministerial Forum, intend to work together on crisis response in an effort to alleviate near-term transportation, logistics, and supply chain disruptions and bottlenecks as well as the long-term resilience challenges that make our supply chains vulnerable and cause spillover effects for consumers, large and small businesses, workers, and families. To ensure this effort is effective and reaches those most in need, we intend to engage on this work with businesses, workers, academia, labor and civil society, including women, representatives from local and other communities, consistent with Participants’ domestic laws and international obligations, and different levels of government.

“Building collective, long-term resilient supply chains based on international partnerships is critical to the success of this effort.  To achieve this, we aim to follow these global supply chain principles: 

Transparency:  We intend to promote transparency in consultation with the private sector, civil society, different levels of government, and other relevant stakeholders, consistent with Participants’ domestic laws and international obligations, in order to strengthen the resilience of supply chains. Civil society consultations, consistent with Participants’ domestic laws and international obligations, are an important part of transparency. We intend to advance information sharing, and to the extent possible common approaches and early warning systems, about potential, emerging, and systematic supply challenges. We intend to undertake this cooperation consistent with Participants’ domestic laws and international obligations and with utmost care to protect non-public information, including information necessary for the protection of essential security interests.

Diversification:  We aim to promote diversification and increase global capacities for multiple, reliable, and sustainable sources of materials and inputs, intermediate goods, and finished goods in priority sectors, along with logistics infrastructure capacities, increasing resilience of supply chains to make our economies less vulnerable to disruptions and shocks. We intend to explore opportunities to promote public and private investment into supply chains in priority sectors and to encourage partnerships and co-investment for access to and development of environmentally and socially responsibly sourced materials and inputs.

“We aim to promote the involvement of small and medium sized businesses in priority supply chains. We aim to promote the adoption of digital technologies by micro-, small, and medium sized companies. To advance the principles of equity and inclusion, we aim and strive to ensure investments are made into a broad range of communities, consistent with Participants’ domestic laws and international obligations, throughout our economies. 

Predictability is important to resilient supply chains, and we will aim to work together to promote predictability, openness, fairness, and nondiscrimination in our economic relations as they impact our supply chains. We will aim to reinforce and foster our longstanding, rules-based economic partnerships and supply chain relationships.

Security:  To promote supply chain security, we intend to deepen our consultations to identify and address risks arising from supply dependencies and potential vulnerabilities in critical infrastructure. We intend to work together to address our mutual vulnerabilities and work to eliminate corruption in support of supply chain security. We encourage Participants to undertake this cooperation in partnership with industry, labor and civil society, and other relevant stakeholders, pursuant to domestic laws, to better understand and manage security risks to supply chains. 

Sustainability:  We intend to encourage global sustainability and responsible business conduct across supply chains, as well as objectives set out in relevant multilateral environmental agreements to which we are parties, including the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. We encourage the adoption of responsible business practices and recognize the importance of implementing our respective obligations under international labor conventions ratified by respective countries along the entire value chain to ensure that opening up new sourcing or supply chain options does not shortcut existing commitments to uphold human rights. This includes our intent to cooperate to eradicate the use of forced labor in global supply chains. We aim to foster the increased use of recycled materials and product components. We also aim to foster and support the fair and sustainable manufacturing and trade of products, consistent with Participants’ domestic laws and international obligations, including through circular economy, the bioeconomy, and other approaches, that advance the fight against climate change, biodiversity loss, pollution, and which advance the UN Sustainable Development Goals.

“We welcome all economies and invite all industries, businesses, women, workers, officials from different levels of government, labor and civil society, and other stakeholders to join us in pursuit of resilient supply chains, guided by these principles.  We acknowledge the key to resolving the next global supply chain crisis is to prevent it from happening in the first place.”

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New World Report Announces the Winners of the 2022 Virginia Business Awards

United States, 2022 – B2B business publication New World Report has announced the winners of the 2022 Virginia Business Awards program.

Virginia is a behemoth on the US landscape. When it comes to business, it has thrived for decades on the back of an unrivaled work ethic and strong values. Virginians know how important it is to work hard to achieve success, and in treating all of their clients with a service that always exceeds expectations.

Ultimately, this year marks the first Virginia Business Awards, launched to recognize the incredible achievements of those in the lone star state, despite incredible uncertainty, immense challenges and dogged competition.

Awards Coordinator Victoria Cotton took a moment to comment on the eve of the program’s announcement: “I offer a sincere congratulations to all of the winners recognized in this inaugural edition of the Virginia Business Awards. Congratulations! I hope you all have a fantastic rest of the year ahead.”

To learn more about our award winners and to gain insight into the working practices of the “best of the best”, please visit the New World Report (https://www.thenewworldreport.com/awards) where you can access the winners supplement.

 

ENDS

 

NOTES TO EDITORS

New World Report is an insightful and informative business news platform providing readers throughout the Americas with business advice to aid business progress, success stories aimed to inspire and trends and innovations to support business growth and continuity. Born out of the merge of U.S. Business News and Latin America News, the New World Report has a dedicated website which is updated daily with content and each month a newsletter is circulated to more than 100,000 businesses and professionals from across the region.

 

About AI Global Media

Since 2010 AI Global Media has been committed to creating engaging B2B content that informs our readers and allows them to market their business to a global audience. We create content for and about firms across a range of industries.

Today, we have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience. Our flagship brand, Acquisition International, distributes a monthly digital magazine to a global circulation of 108,000, who are treated to a range of features and news pieces on the latest developments in the global corporate market.

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Playa del Carmen in a Considerable Increase In Tourism

Playa del Carmen beach in Mexico

More than 16 million tourists visit Playa del Carmen every year. With 98 thousand lodging rooms representing more than 80% of the hotel occupancy in the Riviera Maya, Playa del Carmen has given much to talk about from 2020 to the middle of this year.

By mid-2022, Playa del Carmen opened dozens of post-pandemic establishments, giving way to the most prominent tourist cities like Cancun or Tulum.

Playa del Carmen has lately been the focal point of thousands of news stories day and night. It is for the same reason that, every day, people from all corners of the world are interested in such an exciting destination. As a result, it has reached up to 100% capacity in various hotels in the high season.

In addition to the growing tourist activity in this city, there is the Tren Maya. One of the initiatives by the president of the Mexican republic has given much to talk about, both for better and for worse, in local and even international media.

For the Ministry of Tourism, the hotel industry represents one of the main pillars of the investment and employment sector, not only in the state of Solidaridad and neighboring Quintana Roo but throughout the country. In 2019 and 2020 alone, it represented more than 30% of the tourism GDP and 10% of employment in the republic.

Although most of the tourists in Playa del Carmen are international, it should be noted that the national market has also raised considerable tourist traffic to this destination.

Services like transportation from Cancun to Playa del Carmen, hotels, and restaurants are the primary beneficiaries of this resurgence in tourism in Solidaridad.

Another sector that has benefited from the increase in tourism in Playa del Carmen is the construction industry which has initiated important works inside and outside the city with resorts and water parks to receive the wave of tourists the town hosts yearly.

It was among the 70 main tourist cities with more traffic, where Playa del Carmen stood out. So far, from 2020 to 2022, it has reported up to 63.8% in hotel occupancy. Playa Car is one of the favorite destinations for tourists, with an occupancy of 78.7% of its facilities. They were followed by Cancun, Cabo San Lucas, and Puerto Vallarta.

It is worth mentioning that earlier this year, Playa del Carmen was recognized as one of the fastest-growing cities in the entire republic. Being this, one of the cities with the most significant number of migrant citizens from other states in recent years.

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Three-Quarters of Young Canadians More Likely to Leave Their Current Job For One With Better Benefits

Employee Benefits

In the midst of a tight labour market, Canadians are placing increasing importance on employer-provided benefits plans. According to a recent RBC Insurance survey, nearly three-quarters of young Canadians aged 18-34 (73 per cent) and 35-44 (69 per cent), are significantly more likely to leave their current employer for another that is offering what they would consider to be better benefits.

In determining what makes one benefits plan better than another, the top three desired features as reported by survey respondents were support for mental health (88 per cent), a health spending account (80 per cent) and options to add additional coverage (79 per cent) to better meet personal or financial objectives. These results are aligned with how younger workers are feeling, with 61 per cent reporting lower levels of overall well-being (down three points since 2021), and 58 per cent reporting a decline in mental health (down five points since 2021).

“Given our collective experience since March of 2020, it’s not surprising to see a range of worries and stressors reported by working Canadians” says Julie Gaudry, Head of Group Benefits, RBC Insurance. “The knock-on impacts of a tightening labour market have made flexible and tailored employer-provided benefits desired by many – and clearly a draw, particularly for younger generations.”

 

Market trends also signal the need for better employer benefits

Some other labour market trends are highlighting the need for competitive employer-provided benefits. According to RBC Economics, there are roughly 70 per cent more job postings and 6 per cent fewer available workers compared to pre-pandemic levels in Canada, creating a ‘buyer’s market’ for those seeking a job change. Further, The Bank of Canada’s Survey of Consumer Expectations revealed the likelihood of a worker voluntarily leaving a job is increasing, as younger Canadians reported lower levels of overall well-being, mental and physical health year-over-year since 2019.
 
“With heightened competition for talent, it’s critical that organizations develop or refine benefits plans as a key component of their offer,” says Gaudry. “We need to pay particular attention to this younger cohort, which already makes up a significant proportion of the workforce, and continues to grow. Employers must ensure the right support is available to this younger generation.”
 

Benefits plans make a difference

Canadians with employer-provided benefits are significantly more likely to rate their job satisfaction (64 per cent, six points higher), overall level of well-being (64 per cent, 10 points higher), physical health (62 per cent, eight points higher), mental health (60 per cent, seven points higher), and financial health (55 per cent, 17 points higher) higher than those without benefits.

 

Top three takeaways for employers

  1. Prioritize employee mental health and well-being. RBC Insurance Group Benefit Solutions offers a Workplace Wellness Toolkit which provides plan administrators with a framework for assessing the well-being needs of their employees and creating a wellness strategy that is tailored to the unique goals of their organization at no additional cost.

  2. Increase awareness of existing benefits plan features. Remind employees about the coverage they may already have available and how to access it. This is also a great opportunity to gather feedback about employee satisfaction of their benefits plan.

  3. Ensure your benefits plan meets the needs of your workforce. One way to do this is to offer flexible coverage and a health or wellness spending account which allows employees to customize their plans to meet their individual needs. This will help with retention and recruitment efforts; especially for younger Canadians.

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