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Cultural Issues in the Global Economy

In this part of your paper, focus on your country's position in the global economy. Address the following questions in this part of your paper:

1.What is the present state of the economy (e.g., GNP, per capita income, rate of economic growth, etc.)?

2.How much debt does your country have?

3.How does the economy (particularly the economic growth rate) today compare to 20 or 30 years ago?

4.What are the dominant industries and or corporations, and who controls them?

5.How would you characterize the present government of your country (democratic, authoritarian, etc.)?

6.What is the trade relationship between your country and the United States?

7.Describe the trade relationship between the United States and Latin American countries during the last half century. How do past Latin American trade practices affect the region today? Feel free to use the Cybrary or other Internet sources for help

Solution Preview

1.What is the present state of the economy (e.g., GNP, per capita income, rate of economic growth, etc.)?

Canada: GPA = $1.318 trillion (11th) (2005 est.); per capita GNP = $34,444 (8th)(2005 est.);
http://en.wikipedia.org/wiki/Canada
Rate of economic growth = 2.4% (2004 est.); Unemployment Rate = 7% (2004) Budget = revenues: $151 billion expenditures: $144 billion, including capital expenditures of NA (2004 est.); Labor force by occupation = agriculture 3%, manufacturing 15%, construction 5%, services 74%, other 3% (2000)
See http://www.cia.gov/cia/publications/factbook/geos/us.html
GPA by industry:
Agriculture: 2.3%
industry: 26.4%
services: 71.3% (2004 est.)
http://www.cia.gov/cia/publications/factbook/geos/ca.html

2.How much debt does your country have?

Public debt = N/A 2004
External debt = $570 billion (2004)
http://www.cia.gov/cia/publications/factbook/geos/ca.html
3.How does the economy (particularly the economic growth rate) today compare to 20 or 30 years ago?

- The economy is better today than 20 to 30 years ago. For example, the annual average growth rate is the average of year-over-year percentage changes reported during a year. The November Monetary Policy Report indicates that the Bank expects the annual average growth rate for 2001 to be about 1.5 per cent. For the first half of 2001, the year-over-year growth rates as published by Statistics Canada are 2.5 per cent in the first quarter and 2.1 per cent in the second quarter. For the third and fourth quarters, a profile that is consistent with the expectations described in the November Report (say -0.5 per cent and 0 per cent, respectively at annual rates) yields year-over-year growth of 0.9 per cent in the third quarter and 0.5 per cent in the fourth quarter. Averaging the four year-over-year growth rates in 2001 gives the annual average growth rate of 1.5 per cent http://www.bankofcanada.ca/en/monetary/monpolicy.html?style1=print
• In the WorldFactbook- Rate of economic growth (increased from 2001) = 2.4% (2004 est.);
• Between 1980 and 2001, the economic output of the G-7 countries (Canada is one of them) grew slightly faster (2.7% per year).
• Canada’s real GDP per capita grew the slowest (1.5% per year) between 1980 and 2001, but still increased by more than 36% overall.
http://www.eia.doe.gov/emeu/cabs/carbonemiss/chapter2.html
1980s and 1990’s
- Canada experienced an especially deep recession in the late 1980s and early 1990s. This led to massive government deficits, high unemployment, and general disaffection.
- The poor economy led to the overwhelming rejection of the Progressive Conservative Party in the 1993 election, and the fall of other governments such as Bob Rae's in Ontario. The poor economy also increased support for sovereignty in Quebec. An option that was just barely rejected in the 1995 Quebec referendum.
- A brief recovery in 1994 was followed by a return to recession in 1995-1996. Since that date, the Canadian economy has improved markedly, in step with the boom in the United States. Once referred to as a fiscal basket-case, Canada has become a model of pecuniary stability as the government has posted surpluses for many years.
- The recession brought on in the United States by the collapse of the dot com bubble beginning in 2000, hurt the Toronto Stock Exchange but has affected Canada only mildly. It is one of the only times Canada has avoided following the United States into a recession (http://en.wikipedia.org/wiki/Economic_history_of_Canada).

4.What are the dominant industries and or corporations, and who controls them?

Canada:
- Following this downturn, Canadian economic growth has been concentrated in the petroleum, real estateand income trust sectors (http://en.wikipedia.org/wiki/Economic_history_of_Canada)
- Private corporations and companies
5.How would you characterize the present government of your country (democratic, authoritarian, etc.)?

Canada:
- the government is a constitutional monarchy that is also a parliamentary democracy and a federation.
- Constitution is made up of unwritten and written acts, customs, judicial decisions, and traditions; the written part of the constitution consists of the Constitution Act of 29 March 1867, which created a federation of four provinces, and the Constitution Act of 17 April 1982, which transferred formal control over the constitution from Britain to Canada, and added a Canadian Charter of Rights and Freedoms as well as procedures for constitutional amendments
See http://www.cia.gov/cia/publications/factbook/geos/ca.html
6.What is the trade relationship between your country and the United States?
- Good

- e.g. The 1989 Canada-U.S. Free Trade Agreement (FTA) http://en.wikipedia.org/wiki/Canada
-e.g. North American Free Trade Agreement (1994)
See http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement
7.Describe the trade relationship between the United States ...

Solution Summary

Based on a specific country's culture, this solution provides assistance by fully addressing each question on the country's position in the global economy.

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