The shutdown of America government will impose an external threat to local business. Concerning about the impact that the shutdown of America government has on economy, investors decrease the amount of money they invest and this is bad for the market. And with America being the biggest trader, Canadian business will inevitably feel the impact as well.

However, the impact of shutdown  remains small comparing the impact of failing to increasing debt ceiling.

“If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling. The fiscal pullback would amount to as much as 4.2% of GDP (annualized). The effect on quarterly growth rates (rather than levels) could be even greater. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed very quickly.”

The recession of US economy is going to seriously damage business activities and performance of all companies. No matter how smart a businessman is, there are always external factors like government that he/she can not control.

Citation

“GOLDMAN: If The Debt Ceiling Isn’t Raised And The Treasury Runs Out Of Cash, Then Say Goodbye To 4.2% Of GDP*.” Business Insider. N.p., n.d. Web. 08 Oct. 2013. <http://www.businessinsider.com/goldman-sachs-on-failure-to-raise-the-debt-ceiling-2013-10>.

“US Shutdown Is Starting to Hit Business, Says Commerce Secretary.” BBC News. BBC, 10 June 2013. Web. 08 Oct. 2013. <http://www.bbc.co.uk/news/business-24419564>.