Explore the external factors impacting country business environment through a PESTEL analysis of Canada. Discover the political, economic, social, technological, environmental, and legal factors shaping Canada’s economy and business landscape. Gain insights into Canada’s strengths, weaknesses, opportunities, and threats for businesses operating in the country.
Background and Introduction
Canada is a North American country that is known for its multiculturalism, natural beauty, and strong economy. It is the second-largest country in the world by land area, covering over 9.9 million square kilometers. The country is located in the northern part of the continent and is bordered by the United States to the south, the Arctic Ocean to the north, and the Atlantic and Pacific oceans to the east and west, respectively.
Canada’s economy is diverse, with a mix of industries that include natural resources, manufacturing, services, and technology. The country is home to many large companies and is known for its innovation in various industries, such as clean technology, biotechnology, and artificial intelligence.
Canada is also known for its strong social safety net and high quality of life, with a universal healthcare system, publicly funded education, and progressive social policies. The country is home to a multicultural population, with many different ethnic and linguistic groups represented.
Canada has a strong commitment to environmental sustainability and has taken steps to reduce its greenhouse gas emissions and protect its natural resources. The country is also a member of various international organizations, such as the United Nations, the World Trade Organization, and the G7.
Overall, Canada is a diverse and dynamic country that offers many opportunities for businesses and individuals alike. Its strong economy, social safety net, and commitment to sustainability make it an attractive destination for investors and immigrants from around the world.
Country Information Summary
| Category | Information |
|---|---|
| Location | North America |
| Capital | Ottawa |
| Population | Approximately 38 million |
| Official languages | English and French |
| Currency | Canadian dollar (CAD) |
| GDP (2021) | CAD 1.9 trillion (approximately USD 1.5 trillion) |
| Industries | Natural resources, manufacturing, services, and technology |
| Major companies | Shopify, Bombardier, Suncor Energy, and more |
| Environmental initiatives | Carbon pricing, investments in clean technology, protection of natural resources |
| Social policies | Universal healthcare, publicly funded education, progressive social policies |
| International organizations | United Nations, World Trade Organization, G7, and more |
| Tourist attractions | Banff National Park, Niagara Falls, CN Tower, and more |
Political Factors
Canada is one of the developed countries that is a founding member of the United Nations. It is a powerful country that maintains good relations with other countries like the USA, France, and the UK. Canada’s capital is Ottawa. Canada is known as a democratic country that has a parliamentary system in place and also has a constitutional monarchy. Prime Minister is considered the head of government and has the executive power. Queen Elizabeth II is a head of state. Canada is famous for its political stability; it is known to be the safest country across the globe. The country has a low crime rate and policy services are very well defined (David, 2021).
Economic Factors
Canada is ranked among the 10th largest economies across the globe. It is a member of OECD-Organization for Economic Co-operation and Development, WTO-World Trade Organization, Commonwealth of Nations, and G20. The country has free trade agreements with other countries like CETA-Comprehensive Economic and Trade Agreement with the EU to make exporting easier. It is a mixed economy, where government and people make economic decisions together. People’s purchasing power is good and can afford luxuries. Moreover, the unemployment and inflation rate is low in Canada and so are the other economic issues (David, 2021).
Social Factors
Canada is considered as second biggest country geographically, but the population is low in the country. Population growth is considered to be consistent for the last four decades and no chances of slowing down can be seen soon. It is a country with mixed cultures and this diversity has been a major factor in the growth of the country, as it is called the country of newcomers. Skilled workers are lacking and hence business growth is an issue there. However, the country is encouraging immigrants across the globe to mitigate this issue. The country is ideal for expatriates to live, as it has provided freedom of religion and culture to its people (Faizan, 2015).
Technological Factors
Technology is one of the most important factors in analyzing the PESTER analysis of Canada. technology is one of the fastest-growing fields in the country, as Canadians make proper use of it in education, work, careers, leisure, etc. It offers high-paying salaries to its citizens, which in return positively affects the economy. Both private and public investments in the technology industry of Canada are growing. It has made the country the best platform for entrepreneurship advancements. Many multinational technological firms see their future growth in Canada and try to explore the country as much as they can (Chinaray, 2012).
Environmental Factors
Canada is one of the best places in the world with amazing scenic beauty which attracts thousands of visitors every year. Glaciers, mountains, lakes, deserts, forests, etc, attract people. However, numerous environmental difficulties are faced by the country. Acid rain, air pollutants, smog, and drastic climate change are the issues affecting people living there. But, the government has taken several initiatives to protect the environment as much as possible (Faizan, 2015).
Legal Factors
Canada s one of the safest countries for any person to live, as Canada works with policies, and laws and is very strict about it. The country has protected every single law and rights of the people in every form, like employees’ rights, business laws, customer rights, seller rights, students’ rights, etc. There are government bodies that take action on the violation of any laws. The country promotes discipline and protects the country from every possible error (David, 2021).
Conclusion
Canada is one of the best places in the world for people to live as it protects the people, environment, animals in the best possible manner. The country is developed and growing at a faster rate. It encourages immigrants to live in Canada and become a part of the country.
References
- Chinaray, M. 2012. PESTEL analysis of Canada. [Online], Available at: https://www.slideshare.net/iamankitsharma/pestle-analysis-of-canada, [Accessed on: 7th July 2021].
David, J. 2021. PESTEL Analysis of Canada. [Online], Available at: https://howandwhat.net/pestel-analysis-canada/, [Accessed on: 7th July 2021].
Faizan, R. 2015. Canada, an Overview through PESTEL analysis. [Online], Available at: https://www.researchgate.net/publication/283305195_Canada_an_overview_through_PESTLE_analysis, [Accessed on: 7th July 2021].