Section 1: Is Canada a trading nation? International trade is driven by a country producing more than it can consume. The surplus is either stored or exported for to other countries for revenue. Canada and USA signed a free trade agreement (FTA) which means that there is free flow of goods between the two countries. In order to remain competitive on the international market companies have to zero in on what there can do better with improved economies of scale in production. With increased economies of scale companies can compete fiercely and with increased profit on the world market. This should encourage Canada to sign more free trade agreements to easy ways of doing business across the global market.
Canada’s geographic position has left it in a position that it has been doing most of the business with the USA. At comparison the size of Canada in terms of population is by far very small to that of the USA her 1st trading partner. Most Canadian exports go to the US including specialized and non specialized goods and services. Canada is now looking at Asia pacific – among the rising global economies is China and India. Canada is looking at improving relations with China so that it can improve trade relations and investments in that country by Canadian companies. Recently Canada signed a trade agreement with China in which Canada will protect Chinese investments in Canada and China will protect Canadian investments in China. Canada’s quest as a trading nation can be seen by the endeavours that its people and the private organisation put in.
On September 20, 2012 members of business round table (BRT), Canadian council of chief executive (CCCE) and Consejo Mexicano de Hombres de Negocios (CMHN) Mexican organization meet to discuss new ways of improving trade relations in North America. Some of the issues discussed is how there can get their respective government to pass regulatory reforms that will secure borders and people across the region. The...
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