Swot analysis of Canada. Canada is a country situated in the north of North-America. The country shares the world’s longest land border of 8891 Km with the USA. The capital of Canada is Ottawa.
The total area of Canada is 3.85 million square miles. She’s the 2nd largest country in the world in terms of area and size with 10 provinces and 3 territories. Vancouver, Montreal, and Toronto are three major metropolitan cities of Canada. Approximately more than 38,008,005 people are populating the country.
Many indigenous people came to Canada thousands of years ago before the arrival of western colonists, British and French, in the 16th century. France gave up its colonies in 1763 in North America. Canada came into existence through the confederation of 3 British colonies in North America in 1867. The country earned its sovereignty in 1982 under the Canadian Act 1982.
The constitutional monarchy and parliamentary democracy are the systems of government of Canada. English and French are two official languages of Canada with equal status.
Today, we’ll discuss the swot analysis of Canada. The swot analysis would help you to understand the strength, weaknesses, opportunities, and threats of the country. For external factors, check out the pestle analysis of Canada. Here’s the swot analysis of Canada as follows;
Strengths of Canada
According to an estimate, the annual GDP (Gross Domestic Product) of Canada in 2020 was 1.808 trillion dollars, and it’s the 16th highest in the world. Out of which the per capita of the country was 47,568 dollars and world’s 21st highest.
Canada is one of the world’s highly developed and advanced countries like the USA, China, and the UK. Her highest per capita means that the human development index of the country is very high in terms of income. She has the 10th largest economy in the world.
It’s because of her high earning and per-capita income, she has the highest ranking of education, economic freedom, quality of life, civil liberties, and government transparency.
Canada has had a long history of welcoming immigrants from all over the world. It has resulted in the form of a highly culturally and ethnically diverse society. Multiculturalism is the main reason behind the success of the country.
Canada has the strong and young leadership of Justin Trudeau. According to an estimate, he has fulfilled 53% of the promises that he had made during the campaign. He has handled the pandemic of covid-19 and other domestic issues very well. He has introduced new laws to reduce carbon emission to zero percepts by the end of 2050.
Neighboring with the USA
Canada shares the world’s largest land border of 8891 Km with the USA. Neighboring with the world’s economic and technological superpower has increased Canada’s export rate. In other words, the USA is the biggest market of Canadian products and services.
According to an estimate by Statista, the trade between the USA and Canada was 30.63 billion dollars in Jun 2020. Out of which Canada’s exports comprised 15.87 billion dollars. In 2019, the total Canadian exports to the US comprised 336.21 billion dollars.
Weaknesses of Canada
The value of free-floating Canadian dollars keeps on changing. The variation in currency is usually around 5%-10% in a single trading session. Usually, her currency is one of the world’s stable currencies. When it fluctuates in the global stock market, it costs a lot of damages to the businesses and foreign trades.
Reliance on the US
Canada has a lot of economic and technological advantages by neighboring the USA. It also proves the fact that she exports more than 70% of her goods and services to the US. It also means that her economy heavily relies on trade with the US. Whenever the US economy falls, so does the Canadian economy as well.
Opportunities available to Canada
As we know that Canada exports a majority of its products and services to the US. Now, she should offer her products/services to the international market, especially the Asian countries like China. It would help her to reduce her reliance on the US market and diversify her economic interest.
Canada is exporting and trading with other countries like Bangladesh, Switzerland, Vietnam, UAE, Spain, Singapore, Turkey, Indonesia, Norway, Brazil, Australia, Saudi Arabia, Belgium, Italy, France, Hong Kong, India, Netherland, South Korea, Germany, Mexico, Japan, UK, and China. But the %age of total exports with other countries is very low, she should amplify her total exports.
We’re living in a living where the US tech companies like Apple, Google, Facebook, Microsoft, and Amazon are ruling the world. The good news is that they all are in her neighboring countries. Now she should exploit the opportunity and promote the same tech and entrepreneurial culture in her schools, colleges, and universities. If needed, she should ask for guidance. The growth and development in science and technology would bring a lot of new opportunities.
Threats Canada has to face
The pandemic of covid-19 has had a very deep impact on the Canadian economy in 2020. The unemployment rate reached 13.5% in mid-2020. It’s been the highest since 1976. The social distancing awareness has shutdown the travel and tourism and hotel and restaurant industry. It has also affected many small businesses.
Conflict with the US
Canadian President, Justin Trudeau, has had a conflicted relationship with the Trump administration. As we know that the USA is a major exporter of Canadian goods and services. The conflict resulted in the form of taxation on Canadian exports like Aluminum and Steel. Even President Donald Trump also wanted to renegotiate the NAFTA deal. Hopefully, things would get better under the presidency of Joe Biden.
Oil Industry & Environmental Issues
Canada is rich in natural resources like oil and gas. But the world has moved away from the usage of natural carbon-emitting resources. It’s because they pollute the environment. That’s why the world is moving towards eco-friendly and sustainable technology.
After a careful study of the swot analysis of Canada, we have realized that Canada is indeed one of the world’s leading countries. The pandemic of covid-19 has badly affected her economy, but she should focus on technology and increasing her exports to other countries. The growth of a small business would help her to regain the same position.