Economic Analysis Of Canada

In analysing Canada’s economy on the global scale it is evident that they are one of the most economically advanced countries in the world having the eighth largest economy. In recent times Canada has moved away from being an economy based exclusively on natural resources, Canada is quickly moving toward a knowledge-based economy built on innovation and technology. Canada is also becoming a smarter economy: Canada’s knowledge-intensive industries are generating advances in their capability to manufacture high-tech machinery and equipment, and encouraging industrial modernization as an end result (Canadian economic observer, 2007). On the argumentative side it is evident that Canada has developed a strong economy due to having vast natural resources to export like energy resources, agricultural products, gold, nickel, uranium and lead but in recent times Canada has become a multi-skilled economy no longer just relying on the export of natural resources. Canada has also became an economic powerhouse due to having a skilled labour force and having modern capital plant. Canada’s service sector has had a major influence on their economy as the service sector accounts for two thirds of their GDP. The major reason why the service sector is so influential to Canada’s economy is that 12% of the Canadian population are employed through the service industry (Canada Economic Observer (2007) . In discussing security matters it is evident that Canada is a low risk country to conduct business with. The reason why Canada is a low risk country to conduct business with is that they have tight government controls and also have tight import/export regulations. Canada are an extremely developed country which is very safe to do business in, so international investors can be confident in doing business within Canada without the risk of downfalls. The obvious risks of doing business within any country are bribery, corrpution and various culture issues but international investors can overcome these risks by showing professionalism and conducting business in a concise fashion.

In talking about Canada’s overall economic growth it is evident that in recent times they have experienced vast amounts of growth. Now the Canadian economy are looking to see increased consumer spending, increased job creation and exports will also increase considerably which will see sustained growth over a ten year period which will see strong economic development (Prokopy, 2003).

One of the heaviest influences on Canada’s economy is the United States of America. Canada and America have an extremely close trading relationship with Canada being the US’s largest trading partner (Redlinger, 2007). The US and Canada have a strong energy trading relationship with 66.7 billion being exports from Canada. The primary components of U.S. energy trade with Canada are petroleum, natural gas, and electricity. Canada is the United States' largest oil