Economically and technologically the country
E3. A simple analysis of whether this country is actively involved in trading based on the trading activities, barriers to trade used by the country and trading agreements described Canada Canada is situated in the north of America and it’s divided in 10 provinces, and Ottawa is the capital city of Canada. The name Canada is derived from the Indian name ‘kanata’, which means “village” or “settlement”. The population in July 2006 est. is around 33,098,932 people. Most of the people are English, French and Scottish and the main language is English and French.
Economically and technologically the country has developed together with the United States. Canadians use dollars as a currency. 1 dollar is about 72 eurocents (Dec 2005). About three quart of the population is working in the service sector. The agricultural sector is very developed. Canada is one of the largest selling agricultural products in the world. The main products are cereals, fruits and vegetables, sugar beet and tobacco. The industrial sector is not that famous. Toronto is a world trade and business centre. The tourism is increasing; most of the international visitors are coming from the United States.
The education and health sectors are two of Canada’s largest, but both are under the purview of the government. The health care industry has been growing really fast and is the third largest in Canada. But because of this fast growth, it causes some problems for the government. They have to find money to fund it. Canada has an important high tech industry and also an entertainment industry creating content both for local and international consumption. Income The incomes of the Canadian families haven’t been improved since the 1990s, but now the economy has been growing.
In 2000 the median income of 8,371,020 families was $55,016 and $54,560 in 1990. While the incomes have increased, the distribution hasn’t been equal. Families with an high income received 45. 2% of the total market income and families with an low income received 3. 8% to 3. 1% in the period of 1989 to 1998. The census data also shares one line with an improved economic condition. The proportion between the total income of families and the government transfer payments declined from 6, 4% to 5, 6% (from 1990 till 2000).
Canadians divided the families into 10 groups, based on their income levels. Each group represents 10% of the total number of families; this is called ‘deciles’. It describes the differences between families with a high, low and middle of income distribution. In 2000 the highest deciles of a family income was above the $ 117,849. The lowest deciles income was lower then $ 18,991. For the whole table of the 10 income deciles, you can find it in the enclosure on page … Statistics Canada collected statistics for the population ’15 years of age and over’, reporting the incomes in 1995.
Income sources included: wages and salaries, farm and non-farm self-employment, government transfer payments, investment income, retirement pensions and other money incomes. In the enclosure you’ll find a chart about the relationship of the income sources (on page …. ) The economic trade of Canada (import ; export) The balance of trade is a statement of a country that trade in goods (merchandise) and services. Trade covers products as manufactured goods, raw materials and agricultural goods. The balance of trade is the difference between the value of the goods and services that the country exports and imports.
The balance is positive when the exports exceed their imports. This shows us whether a country is doing well or not. A positive or negative balance may change in the relative cost of domestic products compared with international prices. Although our country has always been a trading people, the Canadians are expanding their networks abroad more than ever before. The liberalization of trade, through the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA), has reduced the costs that are related to the international trade.
Thanks to the fast diffusion of information and communication technologies, it have cut the transportation costs and improved the delivery times. The technological progress and productively profits in the global marketplace have also lowered the prices on many goods. So the Canadians are increasing a strong reliance on international trade, especially in North America. The Canadian economy is different in every region. Traditionally Ontario has been the economic engine of Canada, because a third from the population lives there and most of the industries establish over there.
Import The three main import countries of Canada are Japan, the United Kingdom and the U. S. A. According to Statistics Canada, the import has been increased from 2001 to 2005. In 2001 the total imports was $ 350,071. 2 million and it increased in 2005 to $ 386,906. 9 million. So the difference between 2001 and 2005 was an average from $ 36,835. 7 million. Off all the products in 2005, Canada imports a lot of industrial goods and materials (especially chemicals and plastics), machinery equipment and automotive products.
(For the whole table, you can find it on page …… in the enclosure) All merchandise that comes into Canada must all be clear and subjected to the Customs duty. Unless the goods are duty or tax exempt by the law. The Customs duties are subjected to a special percentage, which is applied to the transaction value (Canadian dollars) of the imported goods. All these values of merchandise are determined by the Canada Border Services Agency. The Goods and Service Tax (GST) is at this moment 7% and this percentage is used on every taxable imports.
The Provincial Sales Tax (PST) is generally added to imports which are not for re-sale. There is an agreement between the provinces of Nova Scotia, New Brunswick, Newfoundland and the federal government. In this agreement the GST and the PST taxes are combined into a flat rate of 15%. This percentage is only for those 3 countries and is known as the Harmonized Sales Tax (HST) Export Just like the import, the main countries of exporting would be Japan, the U. S. A and the United Kingdom. In 2004 the export was around $315 billion and 85% of this rate went to the US.
Last year, in 2005, the total of the exports was $453,600. 2 comparing with 2001, it has increased $32869. 8. Canada is one of the only developed country nations that exports energy products. They are also the world’s highest per capita consumer of energy. Cheap energy has enabled the creation to several industries, just like large aluminum industries. Historically the Western Canada is one of the world’s richest sources of energy. The two industrial countries, Southern Ontario and Quebec has fewer native sources of power.
In 1988 Canada promised the United States that they will never charge the US more energy than the fellow Canadians (Canada-United States Free Trade Agreement). Canada also exports industrial goods and materials and machinery and equipment. Comparing with 2001 till 2005 the industrial goods and materials have increased a lot. Barriers The import tariffs on forest products have been reduced during the last trade negotiations. The Canadians reduce their import tariffs on forest products globally, this will continue as a priority under the ‘Doha round of World Trade Organization negotiations’.
In many export markets tariffs don’t represents a major barrier to trade development. With the decrease in the tariff rates, it has increased the non-tariff barriers (NTB’s). Non-tariff barriers (NTB’s) or technical barriers cause for exporters many problems, when they are looking for a new market for their products. These barriers can be in the form of regulations, testing, standards and certification procedures. The WTO Agreement wants to ensure, with these barriers, not to create unnecessary obstacles.