Economics
Essay title: Economics
The North America market is one of the richest in the world. Measured in terms of GDP, it is the equivalent of Western Europe. But with a somewhat smaller population, GDP per capita in North America, Canada, Mexico and the U.S., is around 12 percent higher than in Western Europe. The North American Free Trade Agreement (NAFTA), which came into effect January 1, 1994, sets out the schedule for tariff elimination for members.. As a small country, Canada has always been careful in its dealings its large neighbor, the U.S., however,
compliance to
this agreement threatens our very existence. Canada was unfairly taken
advantage
of in the singing of this agreement, our identity of a sovereign nation
is at
risk.
The North American market is also one of the most sophisticated and
demanding.
It is an excellent base from which to develop and launch new products.
From a
Canadian base, companies can establish a solid market position
throughout North
America and then reach out to serve global markets. This agreement,
which and
contains many key provisions to facilitate the conduct of business among
the
three countries, has been a benefit to Canada-U.S.-Mexico trade. The
continent-
wide transportation system that binds this market together is efficient
and
cost-effective. Carriers of all modes are investing in more
sophisticated technology and entering into strategic alliances to improve
service. Border
crossings are becoming easier.
Canada provides an ideal location for serving the entire North American
market.
Companies based in Canada have preferred access to a market of 380
million
people, with a combined Gross Domestic Product (GDP) of more than $10
trillion
(Canadian dollars). However, our participation in the agreement allows
the U.S.
unobstructed to our market. This poses a serious problem when looking
at pure
numbers. Canada is a country of approximately 28,000,000 people and the
U.S. a
country of about 280,000,000. The extra “0” means the U.S. in ten times
greater
then Canada in population size. The implications of this are enormous.
Because of the difference in size it is logical to assume that the
average
Canadian firm is about ten times smaller then its U.S. counterpart. As
example, Bell Canada (Canadas major telecommunications company) is
worth an
estimated 9 billion dollars. AT&T (U.S. major telecommunications
company) is
worth approximately 108 billion. These numbers should speak for them
selves.
Although it hasnt happened yet, AT&T could attempt a competition war on
Bell
Canada
There are many ways to view North American markets. Initially, they can
viewed as three national markets, with certain differentiating