Country Analysis

Canada and the U.S Economic Analysis
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Canada and the U.S. Economic Analysis
Canada and the U.S derive their economic strengths from their rich possession of natural resources. According to Worldatlas (2018), Canada’s value of natural resources ranked fourth in 2016 and that gives it a great economic age over many world economies. Another economic strength of the United States and Canada is their highly developed export-based manufacturing and resources. While Canada ranks as the fourth largest petroleum exporter in the world, U.S is one of the prime exporters of machinery and minerals.
On the other hand, while Canada’s primary economic weakness is the fluctuation of its dollar which has slowly resulted in a rift throughout its balance of trade, U.S biggest weakness is huge debt capital. The U.S has the most credit-based economy in the world. The second weakness of Canada is it’s over-dependence on the US, as it exports a large percentage of its products to the U.S.
Factors contributing to the growth of the U.S’s economy include control of the world’s reserve currency and the US strategic petroleum reserve. The control of the Worlds currency has enabled the U.S. to benefit from lower interest rates when borrowing (Worldatlas, 2018). Besides, the U.S. has large petroleum reserves located in the Gulf of Mexico holding close to 695.1 million barrels of petroleum. Conversely, the US economy has a large fiscal deficit which has continued to increase. Currently, it has a federal budget deficit of 985 billion USD for the financial year 2019.

Both U.S and Canada have increased wealth disparities between the rich and the poor. Compared to Canada’s, however, the U.S.’ wealth inequality is more paramount than income inequality.
While both Canada and the US are democracies, their governance style is different. English is the official language in the U.S. while in Canada, French and English are the official languages. The Canadian government is in the form of a Federal Constitutional Monarchy, while the US government is a Federal presidential constitutional republic. Furthermore, Canadians use the Canadian Dollar as their currency while the US’ currency is the US Dollar.

References
Worldatlas. (2018). Why the United States Economy will Remain the Strongest in the World. Retrieved on August 28, 2018, from https://www.worldatlas.com/articles/10-reasons-the-united-states-economy-could-remain-the-strongest-in-the-world.html