Chapter 2: Economic Systems

Chapter 2:

Productive Resources & Economic Systems

Canadian cannabis investors could find themselves turned away at the U.S. border

September 14, 2018

Border guards have broad powers to question Canadians on their current and past drug use and could declare users inadmissible, perhaps for life, immigration experts say.

Although the recreational use of marijuana will be legalized starting October 17 for Canadian drug users, this legalization will not necessarily be beneficial for Canadian private enterprise in the drugs sector. U.S. border guards now have broad powers to question Canadians on their current and past drug use and could declare users inadmissible -- perhaps for life. U.S. officials warn that any form of participation in the sector could also see someone turned away, signalling potential headaches for investors and people considering entrepreneurship in the marijuana market. Investors investing in marijuana companies across the border will have to find a different way. The environment for enterprise of drug dealers originally participating in the Canadian hidden economy and wanting to expand to the U.S. may have to change as well.

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Glossary

1. Private Enterprise

A term applied to the private ownership of productive resources, a characteristic of market economies.

2. Entrepreneurship

The contribution made by an owner, manager, or innovator who organizes land, labour, and capital to produce goods and services.

3. Environment for Enterprise

A society's social values and institutions, such as stable government, that are favourable to businesses attempting to produce and sell goods and services.

4.Hidden Economy

The growing practice in Canada and other mixed economies of citizens trading one service for another to avoid taxation or to ensure a more personal level of services; illegal transactions occurring in the economy that are not recorded in the GDP calculations; and non-market production.