Economics of integration in North America



Economics of integration in North America

Introduction

Canadian economy is one of the most interesting and intriguing economy of the world. Despite being counted among the 11th largest economy of the world. There is an interesting observation about the Canadian economy is that it relies on the fairly orthodox measures for its survival. The main industries of the Canada are as the logging industry and the oil industry are one of the most important industries of the Canada. But is also one of the most diversified economy as the manufacturing (automobile industry and aircraft industry) being one of the more important areas of manufacturing as far as Canada is concernedBodnar, (Bodnar, G. M.

2001).

Now we will look at the Canadian economy as far as its openness is concerned, the surprising thing is that despite being with the trade agreements with the one of the largest economies of the world. It's economy is relatively stable. The driving reason for this is that they rely on manufacturing as their main contributor. And manufacturing is one of the more stable industries, the output remains relatively stable and thus it is able to sustain itself despite being one of the majors of one of the most volatile economies of the world. The three main sectors as being discussed above are the services sector, the manufacturing sector and the energy sector. The services sector is one of the biggest contributors towards the GDP. (Bodnar, G. M.

2001). The service sector in Canada is immense and many-sided, employing about three quarters of Canadians and bookkeeping for 78% of the production. While the contribution of the manufacturing sector has declined with the passage of the time. During the era of the Second World War, the manufacturing accounted for the 29% of the GDP. As of 2010, manufacturing accounts for 13% of Canada's GDP. While the energy sector accounted for almost 2.9% of the GDP, and by this we mean the contribution net exports are marking to the GDP.

Quantitative Analysis of Canadian Trade

When we talk about the trade that exists between Canada and the rest of the world. The mention of the United States of America is always necessary, while most of the neighboring countries of the world are at the logger heads of the each other; Canada and USA have sustained a very healthy trade relationship over the period of time (Bodnar, G. M. 2001). The primary reason for this trade relationship is that Canada is one of the few countries of the world that can claim a positive current account statistic as far as the trade of oil is concerned. So this is one of the most befitting trade alliances in the world. The simple rationale that can be given is that even though USA is one of the largest consumers of the products, and as discussed above, Canada being one of the few countries in the world that has surplus as far as energy exports are concerned (Cameron, ...