Economy Structure Differences Between America's Neighbors

Economy structure differences between America's neighbors

There are two big countries surround the united stated one from the north and the other from the south. Canada shared with the northern states of America, the cold weather that makes this region of the land snow most of the year. On the other hand, Mexico located in the south of the United States has a subtropical climate similar to western states of America like California. These two countries are independent countries that have made their way to develop industry, discover their resources and contribute in the industry. Both Canada and Mexico seem to have common resources to develop their industry but they do have variation in the way of making use of their resources and making international trade.

Canada is a special country. It has 3rd largest geographic size in the world, but it only has 34 million populations. The domestic market is not as big as its strong economical neighbor American. Although the population is not much in this country, it still has a strong purchasing power which attribute to high personal income. The services industry becomes the largest industry in Canada. The largest sector of services industry is mainly in retail stores, employing 12% of Canadian. It focuses on supply chain of retail stores which clustered in shopping mall, belong to small number retail. Second largest of this industry is business. This sector includes finance, estate, and communication. It is increasing in recent years. Education and health care are also important in domestic market. These two sectors are under control by government. Although they have been increasing very fast, they aren't as large as the other sectors. On the other hand, Mexico also has big domestic service sector such as finance, securities, and tourism. In finance sector, Mexico government opens their finance environment, try to make the banking system liberally and to connect internationally. It makes only some huge international companies rest in the banking system. This action causes a strong banking system, but it's all on foreign hand. They are mainly by US, Spain, and UK banks. Also, because of the strong banking system, Mexico also has big securities market. The stock market has increased wide margin from 2006. Tourism is also an important sector which contributes Mexico's economic a lot. Over 20 million people visited a year; Mexico is the eight largest tourism countries in the world.

Canada and Mexico have different manufacture industry to sustain economic. Even though they are similar in industry, these two countries still have different development in manufacturing. The manufacture industry in Mexico is major on food, beverage, tobacco, chemicals. There is a huge farming land in Mexico. It is a reason that Mexico has a significant position in food manufacturing. Food contributes about 53% in total manufacture industry. Beverage and tobacco are about 7% of manufacturing. In contrast, the important sector in Canada is transportation equipment. It is biggest manufacturing in Canada. In this sector, The most part of products are exported to USA. It is about 15% of total manufacturing industries. The others manufacturing are food, petroleum and coal, chemical, primary metal, and wood. Petroleum and coal is also a big sector in this field, it is about 13% in total manufacturing.

Canada and Mexico are similar in industry. Basically, the economy in Canada is based on domestic industry, and these companies are all domestic companies. Because Canadian has averagely high income which makes them have more money to purchase. Canada can rely on domestic consumer to sustain economy. Mexico is relying on manufacturing to hold their economy. Actually, this is a quite typical example of country's development. A developing country is always based on manufacturing as their main economic resource. It has lower labor cost which can lower produce cost. Also, the benefit of this manufacturing is not really much. This industry always located on lower labor cost country. The averagely personal income is not high like developed countries. So, domestic services industry is also not as big as manufacture industry. In contrast, Canada has higher personal income, so manufacturing hasn't enough benefit to retain its cost. The domestic industry only can change to higher benefit industry