Canada
The Canadian economy and the United States economy tend to move together because of the amount of transactions that take place within the two nations due to their geographical proximity. With the United States recently experiencing a downturn in the economy, analysts estimate that the Canadian economy will not be far behind. However, in the past 10 years the Canadian economy and especially the trade balance have been very healthy.
Current Account
Since 1992, Canada has increased their amount of exports of goods year-in and year-out until slight downfalls in 2001 and 2002. However, between 1992 and 2000 they raised exports from $135 billion to $289 billion, an increase of 114%. Imports of goods also rose consistently over that nine year period from $128 billion to $244 billion. The key fact there though is that imports rose only 90% compared to a rise in exports of 114%. This has allowed Canada to maintain a very healthy trade balance, which has also risen consistently except for a few decreases in 1997, 1998, and 2002. They have not run a trade balance deficit on goods once since 1992.
Canada’s trade balance for services is similar to their trade balance for goods from a growth perspective, but with fewer breakdowns. Both exports and imports of services took very small hits in 2001. Overall, between 1992 and 2003 exports and imports of services rose 105% and 65% respectively. However with services the Canadian economy continually ran a deficit over this 12 year period.
Canada’s overall balance of goods and services also rose every year except for 1997, 1998, and 2002. They initially were running an overall deficit in 1992 and 1993 from a larger deficit in services than surplus in goods. The most common trend that is evident is that every trade category dropped in 2001 and/or 2002. There were no real substantial drops and the declines were quickly met with increases in the following years. It is likely that Canada’s economy felt at least some of the effects of the terrorist attacks on September 11, 2001 because they are such a large trading partner of the United States.
The statistics indicate that Canada has primarily been an investor abroad, with substantial amounts of cash flows leaving the country. Again, both of these accounts grew almost every year. Between 1992 and 1997, funds received dropped only once in 1993. Likewise, funds invested abroad dropped only once within this time interval in 1996.
Prior to the World War 1, United States of America was just a developed country, which was lagged behind other countries, such as, Britain, France, and Germany, with a large land and ample natural resources. However, as the World War 1 was caused, USA was required to produce war materials by France and Britain and exported to those countries. Hence, USA gained a huge amount of money and technical skills, and so the country has grown into one of the world’s economic powers. As a result, USA could invest in Canada in order to get raw materials for its secondary industries. However, USA’s investments in 1920s brought more benefits to USA itself than to Canada. There are three major reasons for the statement. First, since branch plants were established, Canadian own businesses lost their opportunities. In addition, the ultimate purpose of USA’s investments in primary industries was to enhance USA’s secondary industries. Lastly, the skyrocketing growth of Canadian economy by the middle of 1920s resultantly benefited USA than Canada.
Before the war, Canada’s most important sector in its economy was agriculture. However, this was changing drastically after and during the war as industry began to take over as being more important. Canadian production of war material, food supplies, and raw materials had been crucial during the war. After the war, it was only natural that big investments were being made in mining, production, transportation, and services industries. Canadian cities were becoming very important contributors to the economy. This was also bringing in waves of post-war immigration, the backbone of Canada’s multicultural society we know today.
Canada suffered its longest and most terrible economic depression in its history between 1929 and 1939. It is now known as the Great Depression. This essay will demonstrate the major causes, political, economic and social consequences, and the government’s solutions from the Great Depression. The Great Depression affected all of Canada and is a key part of our history. It is important that we learn from it so we can prevent it from happening again.
trade in Canada, and even the whole world. Quebec is a big trade market in
There are many more examples of conflicts between Trudeau's thoughts and his actions. For instance, Trudeau has always been uncomfortable with excessive state intervention in the economy. For this reason he has consistently opposed the imposition of price and income controls. But this did not stop him from deciding, in 1975, that a lack of responsibility on the part of business and labour necessitated the introduction of a controls system. Trudeau has spoken of the need for a shift of emphasis in Canadian society from consumption to conservation. And yet, he allowed energy-conservation measures in Canada to fall far behind those of the United States. More than a few times, Trudeau has insisted that it is our moral obligation as Canadians to share our wealth with poorer nations. Nevertheless, he still reduced foreign-aid spending and even put a protective quota on textile imports from developing countries. Trudeau has written about the importance of consensus in government. But again, this did not prevent him, on more than a few occasions, from entirely disregarding the consensus of his cabinet ministers on a given issue, preferring instead to make the decision on his own.
The fact that majority of the capital funds was in the form of portfolio capital instead of foreign direct investment (FDI) had also worsen the situation. The ratio of portfolio capital to FDI had increased substantially from 1:1.3 in 1990 to 1:6.5 in 1993. Given the volatile nature, portfolio capital tends to respond with greater speed to changes in the environment.
The economic progress Canada made after the war lead to the growth of the country. New industries emerged from innovations of products like automobiles, radios, television, digital computers and electric typewriters (Aitken et al., 315). Canadians quickly adapted back to the “buy now, pay later” strategy rather than careful budgeting during the Great Depression (Liverant). Almost everything that Canadians did was influenced from new inventions; television was the most influential. Canadians conversations, humour, and lifestyle were influenced from television (Aitken et al., 315). Trade relations between the United States and Canada had become more efficient due to the St. Lawrence Seaway. The mass development of the St. Lawrence Seaway, in 1954, was to provide a large wate...
The very first component of his National Policy is on the tariffs, established in 1879. Up to 1846 and before 1879, there were two tariffs applicable to imports into Canada: an imperial tariff on foreign goods, and a colonial tariff leied on all imports limited to a maximum of 5 percent (Belanger). There was quite a downfall in the Canadian economy when American products were imported with low cost. The tariff o...
McQuaig is a notable journalist and a writer, who has written a number of books on the state of affairs that Canada’s economy is. Unlike her previous books that she has written ,discussing deficit reduction and cuts to social programs among others, this time she drifted away from the specifics and focused on our general view and acceptance of the economic processes. In the book, she attacks nation’s political passivity and acceptance of the believed fact that the domestic economy fully depends on the global market situation and that is should follow the trends. Trapped in this view, governments act as a victims to the global economic process and accepts an its people and impose this view on the electorate.
spending in Canada was 24.4% greater than in the U.S. and if you subtract the
The cold war had great impacts on the bound and tension between Canada and the United States. The Cold War had divided the whole world in to two sides between the Communism side and the United States. Due to the geographic location of Canada sitting beside US, and Canada had already traded some of its sovereignty in a series of political and military pacts with the U.S, therefore Canada took the United States’ side. Canada took the US’s side as a reaction to the international tensions during the post-w...
Afterward Canada gradually began the trade with countries all around the world. The global trade started to enrich the Canadian immigrants culturally and benefited many people economically as well. This aided businesses in Canada significantly. Now the Canadians had access to many products, such as fruits, vegetables, clothing items and more, which were never before produced or accessed in the Canadian market, which now, made it convenient for the
From the first Great War, to the Great Depression, and after the Second World War, you could say that Canada had been transformed significantly. Since the day the British North American Act was enacted in 1867, Canada was a small and developing country. The Second World War had been one of its biggest challenges yet and the countries future prospects tremendous benefits especially in the fields of political development, social development, and economical development. It was a great struggle to get where she is today and WW2 was a major contributing factor to why Canada is such a strong and unified nation
...es currently does possess an enormous trade deficit, but the importance of this problem and the best means of solving it is a sharply debated issue. Clearly, while a return to protectionist policy would have some positive effects in the short run, it ultimately would undue the enormous growth that free international trade has caused for the US economy. The more moderate approach, of increasing domestic capital, reducing reliance upon foreign money and goods, and reducing government spending, deals with the situation much more effectively. A deficit is often times natural, especially in a wealthy country with a very strong economy, such as the US. Using these techniques, the negative aspects of the deficit can be overcome, while still ensuring the efficiency and affectivity of a liberal international trade system.
The shortage of skilled workers in the coming decade poses a serious threat to all aspects of the Canadian economy. Like all others, our economy is comprised of three major elements: primary products, secondary goods and services. My research indicates that primary products constitute just over 7% of Canada's GDP, secondary goods account for 21%, and the services comprise 72%. This distribution although heavily in favor of the service industry still shows the importance of the secondary/manufacturing industry in Canada's modern day economy. Taking into fact that since the late nineteenth century, Canada's centre of manufacturing is focused in two provinces, Ontario and Quebec. Consistently, year after year, Ontario contributes about 50% of the Canadian total of manufactured goods produced, measured by value, and Quebec 25%.