ECONOMY • 157
products, fish products, petroleum, and natural gas. The Canadian
economy may be classified as a mixed market or social market econ-
omy, which the Heritage Foundation ranks as 7th in the world on the
“index of economic freedom.” Canada thus ranks higher than most
European countries and slightly lower than the United States, which
is in fifth place. Canada ranks high in the most developed countries of
the world by the Human Development Index, with a GDP per capita
lower than that of the United States but a median household income
equal to that of the United States.
Canada lives by foreign trade and retains a strong trade balance.
Canada imports $394.4 billion (2007), predominantly from the
United States (about 54 percent) but also countries including Great
Britain and Japan, mainly machinery and equipment, motor vehicles
and parts, electronics, crude oil, chemicals, electricity, and durable
consumer goods. Canada exports $440.1 billion (2007), predomi-
nantly to the United States (about 81 percent) but also countries such
as China and Mexico, mainly motor vehicles and parts, industrial
machinery, aircraft, telecommunications equipment, electronics,
chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum,
natural gas, aluminum, and precious metals.
By and large, Canada’s economy is based on its regions, though
the natural resources of the country are spread across these regions.
In British Columbia, forestry and forest products, mining, and hy-
droelectricity generation are engines of the economy, with natural
gas production a rising force. Fishing and fish processing, at one time
significant, counts for much less importance now, with the demise
of fish stocks. Alberta’s power lies in oil and natural gas, with beef
industry and agricultural production (grains) also of significance.
Saskatchewan and Manitoba have minerals of importance besides
oil and natural gas and agricultural significance on a world scale.
Saskatchewan has potash in abundance, and it is one of the exports
to China.
Ontario is rich in timber, pulp and paper production, hydroelectric
and nuclear power, minerals, agriculture, and especially industrial
production, of which automobile, motor parts, and machinery are
significant. Québec enjoys a very similar economy, and the two prov-
inces are closely linked in the manufacturing and electronics sector.
Both provinces have aviation industries, Québec’s being particularly
10_506_Gough.indb 15710_506_Gough.indb 157 9/28/10 5:36 AM9/28/10 5:36 AM