The Past During The 19th Century

own growth but from its participation as a member of the Empire of nations of the

Furthermore, Canada remaining under the archaic British North America Act and not drafting its own constitution meant that the composition of the nation and the government was in the hands of the British Parliament, which denies the Canadians the luxury of dictating the structure and make-up of their own country. Now, one may say that Canada weakened its economic ties with Britain and was therefore no longer economically dependent on them, but the fact of the matter is that all we did was shift our dependence onto another nation, the United States. By 1926, America’s yearly investment in the Canadian economy had risen up to $3400 million (as opposed to $2000 million in 1920) mainly in the exporting of Canadian resources to the United States. In addition to that, American companies built “branch plants”, which were made to avoid having to pay trade tariffs, making this a pretty one-sided trade

American companies also owned a large proportion of Canada’s oil businesses, chemical industries, rubber and electrical companies. Canada began to exploit its raw materials to ship to the United States with no regards of long term effects; Canada’s economy was hit particularly hard when the stock market crashed in 1929 because of its dependency on the U.S.

Canada is currently sitting at a population of over 30 million people and is ranked 11th in the world in terms of exports (Canada: Economic Freedom, 2017). The economy in the country seems to be thriving very well with many skilled workers and plenty of jobs for most individuals in the civilian labor force. For the most part, Canada has always done pretty well in terms of having a successful economy. Starting in the early 50s Canada was thriving primarily off of the waterways unlike today the country thrives off selling petroleum, cars, and other things other countries need and want. Although this shift from a farm based economy too much more industrialization did not happen until after the Great War, it wasn't until the 1920s until Canada

Trade barriers and agreements prevent free flow of goods and services. Quebec’s main industries of textiles, furniture and dairy farms are reliant on the rest of Canada, would be adversely affected. For example, dairy products from Quebec, which provide half of the industrial milk for the rest country, would be subjected to higher prices and would decrease its demand. Quebec would lose a stable supply of oil and gasoline from Canada (source). Resources of this nature in any industry would be a sensitive matter and problematic as people would be subjected to higher energy costs.

As Mulroney came to office in 1985, he dismantled the FIRA and replaced it with Investment Canada, a new system which he believed would encourage suitable foreign investment. FIRA was criticized by those who concerned about American economic influence, since it almost approved every application it received. At the time, in some industries, such as the petroleum and rubber products industries, foreign control exceeded ninety per cent. Over three-fourths of this control was held by United Sates investors.6 These new and old policies brought better and higher rate of business income between Canada and the United Sates, which resulted in closer ties between the two countries.

In Canada, an important economic transformation accelerated as Britain was wholly supplanted by the United States as Canada's main economic partner. By the middle of the decade, economic development started to soar in Europe and the Roaring

In the early 1870s American traders came from America into the Northwest of Canada and they were causing troubles for the Canadian government. While most Canadian traders were under the control of

Globalization can be defined as the increasing interconnectedness between states, therefore it can benefit Canada and Canadians in certain areas such as increased availability of needed products, and a quicker and easier form of trade (McBride 2005). Without trade Canada would have a hard time surviving. With a population just shy of 33 million, it would be difficult to procure the funds and obtain the needed resources to supply citizens with everything they need. Due to Globalization trade has become easier (See Appendix B). There are less barriers and borders to deal with when shipping in products and resources. This allows for both a flow of money out of Canada but also a flow of money back into the Canadian economy (McBride 2005). With

Secondly, closer ties to America helped us form a culture we know to this day. American media was playing through Canadian televisions and radios. In the late 1950s after Canadian’s pride and joy was aggravated by the “Avro Arrow”, Canadian aviation talent went to America and helped with the man landing on the moon. This influenced Hollywood to dedicate movies and T.V shows. Some of Canadian actresses and actors stared in the playing of Hollywood shows and movies, along with American actors and actresses. Canadians started watching more television which influenced Canadian buying behaviours, clothes, behaviours, food etc. American culture had slightly influenced Canadian culture through media. Also America has always been Canada’s number one trading partner. Gordon Morton McGregor, who was head of the Ford Motor Company of Canada Ltd., set up the largest automotive car company in Candaians. This car company gave many Canadians jobs since they were manufactured by Canadians however the parts that came in for the automobiles were from America. American goods were being transferred to Canada so they can manufacture cars. The Americans have a culture that is recognized as being luxuries and rich. By America trading valuable goods with Canada we gained recognition as Canada being a wealthy and luxuries country. Canada and America

Investopedia.com states, “free trade is the economic policy of not discriminating against imports from and exports to foreign jurisdictions. (Buyers and sellers from separate economies may voluntarily trade without the domestic government applying tariffs, quotas, subsidies or prohibitions on their goods or services.)” In the previous decade, one of the many controversial subjects in the Canadian economy included whether or not it was beneficial for our federal government to eradicate free trade or open it up to other nations. During my research, I discovered that free trade agreements between Canada and other nations were not as beneficial as they may have seemed for they were often business and market oriented.

By the 1840s, Canada’s economy was still largely agrarian, even though the two key ingredients for industrialization—an available labour force and a transportation infrastructure—were in place.

Canada’s economy was once solely reliant on the exportation of raw materials, such as furs and timber, to Great Britain and Western Europe. Aside from this exportation of raw materials, Canada was largely agricultural in nature. By the time of Confederation, fifty-percent of labour remained agriculturally based (Krahn, Lowe, Hughes, 2008). Changes occurred around 1900; the industrial era replaced the once mainly agricultural and small-scale local production of times past by way of new technologies in the form of electricity, steam powered engines, railways, water wheels, etc. These tools allowed for the re-organization of work from piecework and compensation, based on individual output, to one of large manufacturing plants, high-production, specialized workers, and hourly pay. This industrial era has now morphed into one of new technologies and new careers; careers based in services. The dominance of a service-based economy is prevalent as around 75% of all employment in Canada was in services circa 2005(HRSDC,

As the 20th century comes to an end, Canada is a transcontinental nation whose interests and representatives span the face of the globe and extend into every sphere of human behaviour. However this was not always the case. When the four colonies of British North America united to create Canada on July 1, 1867, the new country's future was by no means secure. Canada was a small country, with unsettled borders, vast empty spaces, and a large powerful neighbour, the United States. Confronting these challenges was difficult for the young country. Though Canada was independent in domestic matters, Britain retained control over its foreign policy. Over the next fifty or so years, Canada's leaders and its

     Over the past few years, Canada's economy has done comparatively well and has demonstrated some resilience to the fluctuating global economy. However, Canada remains to be relatively less competitive with respect to other developed countries. In this paper I will attempt to take a closer look at Canada's position in the global economy today and examine the relevant issues.