CANADA’S ECONOMIC ANALYSIS

A Population and Distribution

Canada census in 2011 showed that the country population was about 33,476,688 that approximately make up about 0.5% of the world total population (Edmonston & Eric 23). Population by gender and age in Canada between 16-25 years is about 4,365,585 which is equivalent to 13% of the total population in the country. The figures are promising to Dick Sporting Goods as its main target is this age brackets. Most of the young generations are in high school and college where they develop their skills in order to become professionals in the area of sports. As a sports hub country, it is important to provide quality training gears for the young people so that they may experience a smooth period in their training.

Population growth rate in Canada has also been on the rise. It recorded a 20.4% growth in population in the year 1990-2008. Population in Canada is densely populated in southern part of the country and provinces such as Ontario having the biggest population of more than 12,000,000 while Nunavut has the lowest population of 31,906 (Edmonston & Eric 121). An increase in the life expectancy in all the provinces is an indication that the country economy is performing better thus creating business opportunities which Dick Sporting Goods can take up. It also indicates that there are better living standard and quality health care for its people. 

Economic Statistics

National income of a country is a money measure of national income that has been received or accrued by the resident of the country for a specific period of time. In the year 2010, GNI of Canada was $1.60 billion. Its GDP was 1.62 billion (Taorda 1). This shows that the monetary value of goods and services in the country has increased. Public and private consumption are high, government outlays have improved and investment in the country is on the rise. This signals that the cost of doing business in Canada is favorable even to the foreign companies. Per capita income in Canada between 1980 and 2012 $36, 138 which earns it the 8th position amongst 16 peer countries (Taorda 1). This indicates the purchasing power of the citizens in the country. This is helpful to the new company as the parents to the targeted group age can be able to purchase the training and the sports gear for their children.

The average household income in Canada in 2014 is $78,870 (Government of Canada 1). This shows that medium families in Canada generally have a higher income. This translates that there are high levels of income in each family which means that they are ready to spend. Wealth distribution in Canada has continued widening. The rich families’ net worth in 2012 was $1.3 million while the poor families’ net worth ranges from $79,500 to $109, 300 (Sturgeon 1). In the year 2016 unemployment in Canada is 6.9 % from the previous 6.8 % which is as a result of a drop in the public sector employment. An increase in the part-time jobs has also increased unemployment as most people have dropped full-time jobs. Inflation in the current year 2016 is at 1.61%. Over the years inflation has continued to change (CBC 1).

Major Industries

Canada is the 15th largest economy in the world. It is among the developed and wealthiest country in the world. Canada has 60:40 ratio of private to public companies which is as a result of the economic freedom experienced in the country. The economic system in the country is market oriented with an efficient pattern production. Canada is well covered in agriculture in terms of wheat and grains. It is the largest supplier of agricultural products (Lipsey 71). The energy industry in Canada is well developed in abundance of natural gas and oil making it the third largest oil reserve in the world (Lipsey 214). Canada has vast technology making it among the strongest in the world. It has invested deeply in digital media, E-commerce, and wireless infrastructure (Lipsey 41). Service industry such as tourism is strong in Canada with 80% (Lipsey 367).

Canada has well-developed infrastructure that gets goods and people moving. There are well-developed water tunnels that supply clean drinking water (Lipsey 171). The government has created spaces for recreation and sports that Dick Sporting Goods seeks to exploit. The drainage system is well maintained and it has proper natural disaster management strategies. The road network is extensive that enable people to move fast from one point to another.

Membership in Trading Blocs

As a member of WTO, Canada has well-integrated regional trade blocks (Wesson 165). It has well implemented international trade regulations that govern the country imports and exports operations. The regional market trades have been promoted by the government through WTO has sealed its members from global competition through the establishment of tariffs of goods produced by the countries in the organization (Wesson 324). The trading blocs in Canada has strengthened ties between different nations create an opportunity for Dick Sporting Goods a chance to thrive in the booming market. The trade blocs have increased movement of services and capital as well as trade barriers.

 

 

 

Work Cited

CBC. Canada Sheds 31,200 Jobs in July, Unemployment Rate Rises To 6.9%. 2016. Retrieved from http://www.cbc.ca/news/business/jobs-canada-july-1.3708611

Edmonston, Barry, and Eric Fong. The Changing Canadian Population. Montréal: McGill-Queen's University Press, 2011. Print.

Government of Canada. Statistics Canada. 2014. Retrieved from http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil108a-eng.htm

Lipsey, Richard G. Services Industries and the Knowledge-Based Economy. Calgary: Univ. of Calgary Press, 2006. Print.

Sturgeon, Jamie. Wealth Gap Widens In Canada As Richest See Faster Rise In Net Worth 2015. Retrieved from http://globalnews.ca/news/2033927/wealth-gap-widens-in-canada-as-richest-see-faster-rise-in-net-worth/

Taorda, Joana. Statistics Canada. 2016. Retrieved from http://www.tradingeconomics.com/canada/inflation-cpi

Wesson, Tom. Canada and the New World Economic Order: Strategic Briefings for Canadian Enterprise. Concord, Ont: Captus Press, 2007. Print.