Overview of Canadian Economy and Its Challenges

Economics is a study of social science that analyzes the production, distribution and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how the country economies work. There are two types of economics that is Microeconomics and Macroeconomics. Microeconomics means small. It analyzes basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. It may include households, a particular firm, buyers, and sellers. Macroeconomics means large. It analyzes the entire economy and issues affecting country, including unemployment, inflation, economic process and different policies.

With a population of over thirty million Canada is one in all the world's largest and strongest economies. Canada enjoys a fascinating customary of living, a superb infrastructure, an extremely educated and adept labor additionally as a well-deserved reputation as a successful trading nation. Canada's economy has not always been this way. In the late 1980's, the Canadian economy hit a peak. The economy had just recovered from a narrow channel earlier in the year, but what they didn't realize at the time was that they were heading back down into another trough, which they would eventually bottom out in the 2nd quarter of 1991. While examining the chart for Canada's real GDP I came to know that Canada's Economy is robust, it's solely hit a negative change doubly within the past twenty years. The second negative percent change occurred in the early 1990’s. Consumer spending was on the autumn, government spending was up and down, real capital spending was declining, and imports far outweighed exports. When consumer spending falls, with it goes the GDP, it puts the number result into play.

When consumer spending changes, it can have a dramatic effect on everything else. The roll of the government did not seem to have an obvious correlation in the down falling economy. Government spending rose nearly 6 June 1944 throughout the growth of 1987 and fell backpedal nearly four-dimensional the following year, however because the economy unbroken falling, government spending did not change, it was sporadically shifting throughout the following 3 years, until it hit bottom and fell nearly 8% from 1991 to 1994.

In my opinion, Canada's international challenge within the twenty-first century is to take care of or higher its customary of living. Maintaining a decent customary of legal instrument facilitate North American country retain and attract gifted, educated folks that can maintain and increase our productivity as a nation. In order to maintain this standard of living, Canada should try and enhance its knowledge economy, intangible value, it ability to flourish the economy knowledge, innovation and quality, taxation and innovation and rationalization. In order to higher our data economy, Canada should emphasize the importance of education, and continue to fund education in a positive manner. In regards to Canada's intellectual capital, Canadian companies should be innovative and creative and try to bring to the market, products that are unique and superior to those of competitors. To increase Canada's ability to thrive in the knowledge economy, Canadian businesses must encourage a sense of teamwork throughout the entire organization. In order to boost on the innovation and quality of product made by Canadian firms, Canadians must seek improved technology where it is available.

To ensure international aggressiveness Canadian firms ought to return up with distinctive product or services and worth them according Canadian firms should even be dedicated to find new ways that of skyrocketing productivity. The taxation and innovation present in Canada, although Canada's corporate tax rates are higher than many of its global competitors because of the good infrastructure provided, Canada still has low labor cost rates. Canadian firms ought to attempt to lower taxes on individual firms, because by doing so it would stimulate the economy by encouraging business and consumer spending, foreign investment, and employment. The rationalization processes found in North American country, Canadian companies should make proper decisions. In the world of economics, everything seems to look like a competition.

To conclude the essay, every nation tries to work out what the opposite nations do to succeed and the way they're succeeding. However, all the nations on the world market try to become unified, for a smoother flow of goods and money. But in all reality, that is not going to happen on the immediate future. While other nations are succeeding, other nations continue to disintegrate. I but trouble the factors and aspects, because some countries' conditions are unfair and unequal to the better-off countries – more deprived countries. I agree with the figures for obvious reasons. The more resources, the more accessibility to the resources and the more productivity. This will make countries everywhere better off. However, there square measures various factors, rather than just the straight figure that determine success.