Country Environmental Analysis

Part A INTRODUCTION

1.1 Description of the country (Canada)

North America is the continent where Canada is located. It has 3,849,674 square miles in its territory. There are two official languages in Canada, those can be classified as English and French (National Geographic, 2023). It features multiple rivers, lakes, and mountains including rolling central plains and its eastern valleys.

1.2 Production focus (Primary and secondary)

The primary production of Canada contains involvement in the exploitation and initial processing of natural resources. Coal mining, oil and gas mining, and forestry are the major examples of primary production. The secondary production sector includes processing raw materials to produce supplies. Iron, steel, pulp, paper, and other petroleum products are examples of secondary production.

1.3 Population

According to the report of Statistics Canada, (2023), the population of Canada was 39,858,480 on 1st April. A population incense of 0.7% from 1st January was noticed from that report. About 15.73% of the population contains the 0-14 age category, 65.75% contains the 15-64 age group and 18.52?ll into the over 65 years of age category in 2021 (Statista, 2023).

1.4 Trade

Canada has secured an effective growing trade network in its territory. That provides the best opportunities for the Canadian industry's preferred access to multiple international markets. Furthermore, there are various free trade agreements, foreign investment promotion, and protection agreements, plurilateral agreements, and world trade organisation agreements (GOC, 2023). Those agreements have a portent role in enhancing its trade and investment objectives. Canadas annual merchandise exports worth $779.2 billion, which increased by 22.5%, and annual imports worth $757.4 billion, experienced a rise of 19.9% (Statistics Canada, 2023). Through the comparison of the value of total trade, the trade surplus represented about 0.01% of the total trade value of the year.

1.5 Global Competitiveness

This is worth mentioning that Canada has secured a potent place in its global competitiveness aspects. Rather, the Canadian economy has experienced great success in the competitiveness objectives in the last few years. The Canadian economy has secured effective growth at an estimated rate of 3.4% in 2022. Hence, it is expected that Canada will secure the strongest growth among the G7 economies in 2023 and 2024. Furthermore, it has secured the highest employment and population growth rates among the G7 countries in 2022. To maintain a conducive environment for the competitiveness of companies in a country, a world competitiveness index among G20 countries was developed. Canadas rank was 2nd in that index (GOC, 2023). Despite the economic aspects, the highest employment and population growth rate of Canada is considered among the G7 countries. It ranked 4th among G20 countries for the least complex jurisdiction for conducting business. Henceforth, it is clear that Canada has maintained its global competitiveness in various aspects.

Part B ENVIRONMENTAL ANALYSIS

2.1 Political Environment

As a founding member of the United Nations, Canada is considered a powerful country. Canada is a democratic country with a parliamentary system and operates under a constitutional monarchy (Rani, 2023). The prime minister of that country has the executive power. Canada is a very stable country and is considered one of the safest countries in the world, in terms of political stability. The crime rate is very low in that country. Furthermore, in other countries, the police are much more respected in that country. Hence, it experiences potent growth in tourism sectors in that country. All these characteristics can be stated as the impacts of its political environment.

2.2 Legal Environment

The rule of law in Canada deals with a set of rules that presides over the relationships of citizens with each other. The commerce regulation, community laws, and protection of people from unlawful acts deal with the law's objectives (Courts of PEI, 2023). Furthermore, the Canadian Human Rights Act has the power to punish all forms of discrimination based on sex, sexual orientation, age, race, or religious beliefs.The legal characteristics of Canada have the potential to protect consumers and employees in the world of work. Henceforth, it secures a low crime rate and a good reputation for the country in the world.

2.3 Economic Environment

Canada is a wealthy country with a strong and diverse economy. A large part of Canadas economy depends on the mining of natural resources. Furthermore, Canada is a member of multiple global founding organisations. The United Nations, OECD, World Trade Organisation, and the G20 summit are examples of the organisations. Furthermore, it has three major industries, manufacturing, mining, and real estate.

The global t`rade activities and internal mining activities of Canada have a great impact on its economic level. Rather, the tourism business and a large number of companies have a potent role in enhancing its economic environment. Henceforth, it secured its GDP per capita as 54,966.5 US $ in 2022 (The World Bank, 2023). Furthermore, the inflation rate of Canada can be stated as 2.81% in June 2023.

2.4 International Trade Issues

European culture and tradition have influenced Canada a lot throughout its history. The culture of Canada can be characterised as very progressive, diverse, and multicultural. The most popular religion in Canada is Christianity and most of the Canadian Christians are Catholics. Despite that, Canada contains a potent number of Islam, Judaism, Buddhism, Hinduism, and Sikhism members (Dohe, 2022). Most of the Canadian people give important values to pride, a belief in equality, diversity, and respect for all individualsThe social characteristics of Canada attract a lot of people from other countries. Large companies in Canada need a high number of labourers, hence it fosters immigration procedures. Officially, English and French are the most spoken languages in Canada, the fact is there are more than 200 languages that are spoken as the mother tongue in schools. Canada has been affected by the digital revolution and the digitalisation of business as in other countries. Hence, multiple sectors of technology innovation impact innovative research and development. Canada secured its 16th rank in innovation worldwide, as per the World Economic Forum.

The Canadian government proceeds with multiple programs, which enable tech funding for industrial research, sustainable development, national sciences, and engineering research technology innovation and development to ensure sustained success in protecting trademark objectives in Canada. Hence, any industrial design, patent, trademark, and copyright factors are secured genuinely in that country (GOC, 2023). Furthermore, the technology funding and innovation aspects have a potent role in enhancing business and trade, which affects the countrys economic growth. Rather, the field of health, education, and transport are developing a lot from the technological characteristics in Canada. Canada contains various environmental features in it. Hence, it has damaged the environment and climate change aspect. The environment and climate change rules are developed for conserving renewable resources, and water resources, and enforcing rules to boundaries (Canada, 2023). Despite the rules, Canada has conducted multiple research on climate change, air quality, weather forecasting, water, and nature.Research and rules secure nature and the environment from damage to the environment. Therefore, the environmental characteristics of that country attract a lot of tourists every year. Tourism activity has a potent role in its economy. Rather, that has a role in harming the environment, pollution, and climate change.

Part C Identification of Opportunities and Threats

3.1 The key opportunities

Immigrants

It is worth mentioning that Canada has a large population of immigrants. Immigrants have the potential to contribute to Canadas economy in multiple ways. From the beginning, Canada has always been a welcoming nation to immigrants (Allain et al. 2020). Hence, it provides the opportunity for the immigrants to develop their skills and work in industries and national services. That creates a major opportunity for Canada to use the talent of immigrants in its facilities. Furthermore, the welcoming characteristics of Canada are attracting more highly skilled migrants. Therefore, that will be the opportunity to develop their economy and get a sustained competitive advantage from foreign talents.

Emerging Markets

Canada owns a lot of natural resources, and through secondary production manufacturing, it can develop top-quality products like crude petroleum, cars, gold, and vehicle parts. Those are the products through which Canada can get access to multiple effective emerging markets around the world (Carvalho et al. 2019). Through improved technology objectives, it can increase export activities and explore other international markets. Currently, a minimal part of Canadas exports is sent to India, Brazil, and China. While the majority of the exports deal with Japan, Europe, and the U.S., exporting or emerging markets are the key opportunity for enhancing Canadas economic future.

3.2 The Key Threats

Closing of Shops

The closing of stores has the potential to harm Canada's economy. It is worth mentioning that the U.S. is Canada's largest trading partner. Recently, negative growth in their trading has been noticed; hence, it will cause decreasing exports from Canada. That will harm the business of shops and make them close. Due to that, a huge increase in unemployment rates can occur. The unemployment and closing of shops will affect the Canadian economy directly (Koebel and Pohler, 2020). Furthermore, that will increase the risk of low savings rates and high household rates.

drop in the price of Oil

The dollar has a potent relationship with the oil industry, and Canada has a lot of oil industries. Hence, the country gains a higher Canadian dollar from increasing oil prices. An effective price drop in oil has been noticed in recent periods. Due to that price drop, a negative effect can occur in the Canadian economy related to the oil price. The close relationship with the oil producer has the potential to break Canadas economy within a short period of time (Cheng et al. 2019). Therefore, Canadas government has to focus on the genuine stability of prices in the oil industry to minimise the threats.

Part D Conclusion: country attractiveness

This study contains a proper environmental analysis of Canada. Hence, it has a complete description of the country. Furthermore, its trade objectives, global competitiveness, and the purpose of analysing that country are discussed in that study. The PESTEL analysis of Canada deals with potent aspects of its economic growth. Natural resources, technological objectives, and trade activities are the genuine causes of its growing economy. While it has potent opportunities from its emerging markets and immigrants. The threats to Canada can be classified as the closing of shops and the dropping of the price of oil. Therefore, it can be concluded that Canada has the potential to be attractive for investment, profit, and growth for any organisation.

Investment

This is discussed in previous points: Canada has a lot of natural resources. Through natural resources, we can proceed with both primary and secondary production. Furthermore, the oil industry in Canada has the potential to achieve its export and manufacturing objectives. Through a proper investment in the resource management and oil industries, there will be a genuine chance to get high outcomes from the industry. Furthermore, tourism has a potent effect on the Canadian economy. Hence, proper investment in the tourism industry can provide higher returns as genuine outcomes. Despite resource and tourism investment, technology is another potent avenue for investors.

Profit

This is worth mentioning because Canada is focused on multiple trade agreements and manages both primary and secondary manufacturing objectives. The Canadian economy is growing because of its exporting, technology innovation, and tourism industries. Therefore, it is the appropriate country for gaining sustained profit in any kind of effective business endeavour. The technology investment in Canada ensures effective social connection and security. Hence, organisations can gain genuine profits from any kind of investment or managing business. Recently, the food industry has exploded in the Canadian business industry, so organisations can focus on emerging business objectives and secure higher profits from business operations.

Growth

It is stated in that study that immigration is the major opportunity for Canada's industry and national services. Furthermore, investment and profit aspects can be secured in that country. Hence, an organisation can secure potent organisational growth in that country through proper management. Without focusing on reducing the cost of resources and proper business operations, it will be very difficult for organisations to maintain sustained growth. Rather, Canada is the perfect place for growing any kind of business with sustainable profit aspects. The legal, political, social, technological, and environmental objectives in Canada provide effective benefits to any organisation managing their business with genuine growth objectives.

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