The Canadian Dollar and the Automotive Industry Question 1: The High Canadian Dollar A)Canada has a staples economy. This means that the economy is based on harvesting or extracting natural resources and exporting them in a raw or semi-processes form. In order for this type of economy to be successful the price of the exports must be cheap(Barrows 148). Recently Canada has experienced a range of problems because of the increasing value of the Canadian dollar. This trend reached a crisis point when the Canadian dollar achieved parity with the American dollar(Shane and Sundell 2). This leads to the question what caused this increase? Some of the reasons for the increase are: Canada’s has a staples economy(Barrows 148). The demand and cost of...The end:
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