Characteristics and Factors of Economics

1.      Geographic size

2.      Population

3.      Culture

4.      Government

5.      Family income

6.      Value of dollar

7.      Exports

8.      Trade agreements

9.      Industries

10.   Government

Exports affect the economy greatly. It is linked to:

Industry sales

Trade agreements

Rate of our dollar and of the countries we trade with

GDP

Government regulations

Culture affects our economy the least.

The most predicable characteristics and factors are linked to the Canadian geography. We know its large size will result in high transportation costs from one coast to the next. The highest populations are close to the 49^th parallel. The seasonal climate variations are extreme.

The least predictable is family income and spending because it is related to individual choices, though it is known that when there is job security people do spend more and vice versa.

Thus, the government intervenes to keep interest rates low to encourage spending not saving. They develop trade relationships (e.g. China) sign trade agreements (e.g. Free trade agreement) and intervene in trade disputes (e.g. softwood.)