How to Trade with Canada – Get the Best Returns
A trading nation is a nation where international trade constitutes a high percentage of its gross domestic product. The nations that fit this description are usually those with stable currencies and favorable interest rates. This means that the currencies of these nations make for easy trade, which translates into lower barriers to entry for foreign companies wishing to buy and sell products within the country. The following are the five best Forex trading nations around the world.
Canada is often viewed as a great trading nation, but it is far from the only one. While many think that Canada alone can handle the trade scenario in the oil market, the country actually has four major exporting regions. These include oil, lumber, wood pulp, and dairy products, which can collectively account for over 20% of the country’s total GDP.
With so much domestic commerce going on between Canada and the United States, it is no surprise that many people mistakenly believe that Canada exports mainly products. While there are tons of shipments going back and forth between the two countries, it is the high-tech and other types of exports that are the main source of income. The following are some of the most important exports to Canada: machinery and equipment, chemicals, agricultural products, and automobiles. All of these categories are very important to a lot of different industries. In fact, chemical and automotive exporters alone account for over six percent of Canada’s total exports.
While Canada isn’t the biggest trading nation in the world by any stretch of the imagination, it is definitely one of the top ten. As the United States becomes more isolated on its frontiers by engaging in regime change and constant wars, Canada has continued to expand its exports by leaps and bounds. In fact, the last few years have been quite the banner year for Canadian exports. Canada was able to increase its exports by more than ten billion dollars, nearly ten percent of the total world market. If these numbers don’t convince you, then maybe just looking at the market itself will: demand outstrips supply almost two to one, which means that prices will only go up from here on out.
There are plenty of things to like about Canada as a trading nation. For example, the country’s diverse and strong multicultural heritage ensures that people of different races and ethnicities can interact with one another easily. Canada’s welcoming attitude toward immigrants also plays a huge role in their success as consumers and exporters. Also, Canada has a low-to-no tax rate, something that the United States simply doesn’t have, something that every nation trading with them needs in order to remain competitive.
While many feel that Canada should be treated like the United States, there are many reasons why the trading nation has a leg up on its southern neighbor. They have lower taxes and a low import tariff, both of which reduce the cost of doing business and make Canada one of the best trading nations in the world. Plus, they don’t suffer from the free-trade deficit with the United States that the United States does, so they can put their own unique stamp on the international scene and make themselves the trading heavyweight in the global market. All in all, if you’re looking for a great way to invest in Canada, you may want to look into Global Forex Trading, where you can learn more about the benefits of trading with Canada.