Business freedom In Canada Is highlighted by strong polices that encourage entrepreneurship. The rate of start-up companies wealth the country currently exceeds the rate of business closures. Manufacturing Is currently exalting high growth rates Indicating that the country Is developing Innovative products and processes. Business start-ups In Canada are currently experiencing high survival rates after both one and five years which means that these firms are able to maintain competitive advantage within their markets. (Fisher and Rubber, 2010, Peg. 4) Canada experiences high levels of trade freedom and the foundation of the Canadian economy is foreign trade. Approximately 75% of the country’s exports are to the US. Total foreign trade accounts for approximately 45% of Canada’s GAP. The country’s main exports include oil, minerals, manufactured goods, and forest products and are one of only a few developed nations to be a net exporter of energy (Tragicomedies, 2013). Canada has aligned their trade laws to be more in line tit the laws of its major trading partners.
Canada’s position on the Index of Economic Freedom has been rather stable over the last several years. Unemployment increased from 2008 until now due to the worldwide economic downturn. However, the country was able to weather the crisis fairly well with only a 5% of GAP increase in government spending. Canada has been operating within a net trade deficit since the economic downturn in 2008. However, in the most recent year, prices in all sectors of imports, except energy, experienced price increases while actual volumes creased slightly (Tragicomedies, 2001).
Canada’s economic policies and economic status tends to follow that of the US. Business freedom in Canada mirrored the US until 2005 when it actually began to rank higher than the US. Canada’s trade freedom parallels that of the US. Both countries have low tariffs on imports and are free to export a multitude of goods and services. Canada has excelled over the US in the area of government spending. Canada encourages entrepreneurship, even In previously government controlled sectors. Conclusion