Why doesn't it help Canada? Startup is still in Canada, profit goes to the country. And he creates some jobs for Canadians as well. Maybe it would be better if all staff was local, but Canada wins either way. And it's just one of the ways for business: some hire locally, some hire remotely, some do both. It's just business playing by the rules of the country.
Canada would win a lot more, and be more self-sufficient in the global economy, if employers acted in their long-term interest instead of shorting their shares in the Canadian economy.
Yes, but if OP tried to use local employes there was higher risk of failing or not even starting the company. In that situation Canadian economy would get zero. So I don't know what is better.
It also doesn't help Canada since people who live and support the economy by paying taxes in Canada (income, sales, property etc) don't get a paycheck.
It's harder with large transnational corporations since their money flows are much more complicated. But it's globalization. Basically they are force to do that. If it's more economically beneficial to open plant in China and every other car producer does that, GM will lose money not doing that. And ultimately will go out of business (what they almost did any way :). Government can try to change rules to make outsourcing less profitable, but there's WTO and other things (like laws of economy) prohibiting that.
