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(A) Do you think that exports of oil from Alberta will result in a higher, sustainable...

(A) Do you think that exports of oil from Alberta will result in a higher, sustainable standard of living for Canadians? Explain your answer with reference to Canada’s economic history, the Staples Thesis and the Resource Curse.

(B) Would Canada’s prospects for an improved standard of living be better with a pipeline to access foreign markets (for example Keystone to the US or Gateway to BC tidewater in order to access Asian markets)?

(C) An alternative proposal is to build a pipeline from Alberta to Eastern Canada and encourage more upgrading and refining of raw bitumen to capture more of the value added from the resource. In addition, by selling oil to the East at the below the world price, manufacturing in central Canada could be stimulated. discuss the implications of this strategy compared to the one in b)?

(D) Should Canada have used the recent renegotiation of NAFTA to reconsider free trade with the United States and instead to use tariffs to protect domestic manufacturing in Canada? Refer to Canada’s economic history.

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A) Fare of Oil from Canada has involved hot discussion since quite a while now, with a large number of the Canadian specialists and Globally prestigious market analysts finding out that the fare of oil from Canada) all things considered from Alberta, which is the biggest Oil delivering region in Canada) will leave a negative effect on Canadas economy Many economists have put forward their theories on the same. One of the well-known such theory is the Staple thesis. In the Staple thesis, the export history of many food materials (also known as staple) was studied in a detailed and a comprehensive statistical analysis was carried out, which finally showed that the export of the Staple from Canada not only weakened the countrys economy in the longer run, but also drowned the country of the economic factors of production. The resource curse also explains how a nation which is not self-sufficient in the availability of factors of production or the resources of productivity, should not venture in to large scale export of those critical staple or other items which are deemed critical for the self-sustainability of the nation. Thus, the export of oil from Alberta will not result in to any higher or sustainable standard of living for the people of Canada.B) Canada is a developing economy with very scarce availability of the resources of productivity or the less availability of the factors of production. In such a circumstance, building a pipeline to access foreign markets would mean that the demand from the foreign markets would have to be met. The nature of trade balancing is that when two countries enter to trade, both the countries need to provide adequate amount of the demand of the foreign country in order to import the necessary products in the home country In any case, in the event that we ponder the example of the accessibility of assets in Canada, it will be extremely troublesome for Canada to keep giving sufficient measure of Oil supplies to the outside nations when its structures the pipeline in this manner getting to the remote Oil markets. Accordingly, building this new pipeline may be to a greater extent a bane for Canada than being a shelterC) The Idea of building a substitute pipeline from Alberta to Eastern Canada to support the upgradation and the refining of the crude material, for example, crude bitumen and in this way catch a greater amount of the esteem included comes back from the asset upgradation is maybe a vastly improved thought. This pipeline would serve as a lifeline for the economic development of the country in the sense that this will result in the increased availability of resources or the availability of raw materials for production would increase, thereby creating a pool of factors of production. These variables of generation in the more drawn out run would be satisfactory to deal with the neighbourhood needs of the nation and furthermore bolster any future requests from the remote nations. When this pipeline is set up, in the more drawn out run, Canada will have enough assets to manufacture the other wanted pipeline to get to the remote markets. Canada would then be in a greatly improved position to meet the requests of the remote nation:sThe economy of Canada isnt completely independent and have not yet accomplished the monetary manageability where it can support without expansive scale imports from the United States. The ongoing renegotiation of NAFTA was a decent stage for Canada to revaluate unhindered commerce with the United States, in light of the fact that United States is a tremendous supporter of the upkeep of the Canadian economy A large chunk of exports is carried to Canada from United States on a daily basis. Canadian economy is very much dependent on the supply of materials and goods from the United States. In such a scenario, importing tariffs on the imports from the United States may hit the economy of Canada very hard, thus creating a huge trade imbalance and the balance of payment enlarging its footsteps. This financial pressure on the Canadian economy could be detrimental to its growth. Therefore, it was worth accepting the proposal of NAFTA for a free trade with the United States.

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