Market Structure For Fast Food Market in Canada

Extended Essay Rough Draft (Information)


 The fast-food market in Canada has been on the rise over the last couple of years. Franchise’s have learned to trust their customer’s and have promised to expand in areas all over Canada. The same applies to Richmond Hill, where centres such as plazas and shopping malls have opened the flood gates for new franchises to develop. The target market of this research question is focused on a teenage demographic. For ages 0 to 14, there has been a decrease in the population of about 1,000 people from 2011 to 2016. For ages 15 to 19, there has been an increase in the population of about 4,000 people from 2011 to 2016. Majority of the data will come from the 15 to 19 age group. There is an increase in demand for fast-food in the teenage demographic, as it is a convenient and affordable way of eating. The dozens of fast-food restaurants in Richmond Hill, have made it is interesting to investigate how these franchise’s keep up with the increasing demand. Some of the product sold at these joints come from one producer. For example, the chicken sandwiches at Wendy’s, Burger King, and McDonald’s are produced by Keystone Foods. However, some products of each franchise are produced from a different vendor, classifying the product as a homogenous good, since the quality and taste of each product is relatively the same at each fast-food joint. The question becomes how smaller franchises compete with larger ones, and how they distinguish themselves from each other. While personal preference plays a key role for which restaurant to choose, factors such as theory of the firm and different market structures ultimately answer the question, “Which market structure most accurately characterizes the fast food market in Richmond hill Ontario, amongst a teenage demographic?”

Personal Engagement

 Thinking of an extended essay was a difficult process. The idea of picking a topic which is relevant in today’s world and is something that interests the writer is a hard combination to accomplish. This topic started to become discussed when I was travelling with my family to Knoxville, Tennessee in December break of 2017. On the car ride there, when our family stopped at a fast-food joint, my father was explaining to me how teenagers have different preferences than adults or seniors. For example, when my father was a teenager, he would indulge in fast-food more often than he does currently. Regarding taste preferences, he said that they have also dramatically changed over the years of his life. This thought stayed with me throughout the year, and my interest in it continued when our class studied market structures in economics. I was really interested this microeconomics topic, and when the time came to pick a focus for the extended essay topic, I decided to combine both ideas which interest me.


 It can be hypothesized that the fast-food market in Richmond Hill, amongst a teenage demographic, is an oligopoly. A main reason for this hypothesis would be market dominance. Although there are dozens of fast-food restaurants in Richmond Hill, chains such as California Sandwiches and Big Boy Burgers may not be as popular within a teenage demographic. This is because they own a small percentage of the market share, while firms such as McDonald’s and KFC are dominating it. The big-name companies are often known as the price leaders, due to their influence in the market. Another reason for hinting that this is an oligopolistic market structure are the high barriers of entry. One barrier could be customer loyalty. Thousands of teenagers are loyal to restaurants such as McDonald’s or KFC, making it incredibly hard for smaller franchises to compete. The start-up cost is also expensive, due to different products being sold. Factors such as good location, training, and cooperating with government regulations also add to the cost.

Method of Collecting Data

 To conduct analysis on this research question, primary and secondary resources were used. Secondary sources such as Google Maps helped the investigation through finding locations of the restaurants in Richmond Hill.              Primary sources such as conducting surveys will be done, displaying information such as where teenagers buy their fast-food and if they are aware of different pricing strategies. The survey was completed by 236 people, through online means. Students from Richmond Green Secondary School, Richmond Hill High, and Bayview Secondary took part of the survey. Regarding individuals that are 13 years of age, the survey used students from Richmond Hill Montessori and Elementary Private School. This is an appropriate means of retrieving information, as it relates to the demographic of this research question. Interviewing 3 fast-food franchise owners were also completed to see the role of price and non-price competition, and the cost and revenue related information on this industry.  The tracking of prices of certain items on the menu of the fast-food chains were also done to see which companies are listed as the price leaders (tracked over a 4-week span).

Secondary Data

Market Structures:

To classify the structure of the fast-food market, it is important to investigate the different types of market structures.

1)     Perfect Competition- multiple small firms compete against each other, in which none have significant market power. No firm is labelled as a price leader.

This market structure depends on assumptions such as: all firms sell homogenous goods, no barriers to entry (no cost on entry and exit to the market), firms maximize their profit (Marginal Revenue = Marginal Cost), customers have no preferences

2)     Monopolistic Competition- multiple small firms compete against each other, however certain firms may have more significant market power than others. This is because the goods of each firm are not homogenous and have small differences.

This market structure depends on assumptions such as: each firm sells a slightly different product, no barriers to entry, firms maximize their profit, customers may prefer one product due to the slight difference

3)     Oligopoly- a select few number of firms dominate the market. These firms are labelled as price leaders.

This market structure depends on assumptions such as: firms could sell homogenous or slightly different products, contain barriers to enter and exit the market, firms maximize their profit, the oligopolies (firms which dominate market) set prices

4)     Monopoly- one firms dominates the entire market.

This market structure depends on assumptions such as: the monopolist sets the price and maximizes profit, contains high barriers to enter and exit the market


Fast-Food Chains:

There will be an investigation of 3 products from the following firms:

1)     Wendy’s

2)     McDonald’s

3)     Burger King

4)     KFC

5)     Dairy Queen

Products Investigated:

Within each firm, there will be 3 products which are investigated thoroughly. The products are Ranch Chicken Wrap, Chicken Sandwich, and Garden Salad. When consumers think about fast-food, some believe all restaurants sell relatively the exact same product. This theory can be somewhat proven correct as major firms dominating the fast-food market all buy from the same vendor and retailer. This would make consumers to believe that the products are homogenous and perfect competition is taking place. This theory is however wrong, as companies such as Dairy Queen suggest that products are sold through imperfect competition. Dairy Queen often sells their wraps with extra cheese and more ranch sauce, according their website. This may appeal to the teenage demographic, urging them to buy from that specific chain. While this may not be a big enough incentive for more consumers to buy at Dairy Queen, it still suggests that there are most likely minor differences between each product at each firm. Bigger name fast-food chains such as McDonald’s and KFC sell a wider variety of product than firms such as Dairy Queen. Due to them having a larger percentage of the market share, this supports the claim of the fast-food market being labelled as an oligopoly.


Primary Data

Abnormal Profit:

 It is a common misconception that the fast-food market can be characterized as a perfect competition. The reason for this, is because of the firms that are in competition with each other set the prices for their products and the firms sell “homogenous” products. This reasoning is flawed due to multiple reasons.

 The theory of Economies of Scale states that when there is an increased output in product being sold, the price to produce the product per unit decreases. This theory applies to the fast-food market, because fast-food chains such as McDonald’s have a larger market share compared to Dairy Queen, explaining why it has a wider range of product. The cost of production for McDonald’s will decrease, meaning abnormal profit will be made. This defies perfect competition, as only normal profit can be made within that market structure.

 Abnormal profit is calculated through total revenue (TR) minus the total costs (TC). It is also known as ‘supernormal profit’, because it is additional profit above the level of normal profit. This type of profit exists in perfect competition and monopolies, which conclusively proves that the fast-food market amongst a teenage demographic is neither of the two.


A copy of the survey used to obtain results:

Hi everyone! My name is Sachin Sayal, and I currently attend Bayview Secondary School in the International Baccalaureate program. The Extended Essay is a mandatory assignment needed for my IB diploma. My extended essay focuses on economics, more specifically market structures in our community. If you could please answer a couple of questions to help obtain my raw data, that would be greatly appreciated.

1)     If you do go out for fast-food, which place do you go to most?

*To prevent the survey from becoming void, please answer to the best of your ability and truthfully*

Dairy Queen ___    Burger King ___    McDonald’s ___    Wendy’s ___    KFC ___

2)     Before you purchase your food, how many joints do you visit?

*To prevent the survey from becoming void, please answer to the best of your ability and truthfully*

1___     2___     3___     4___    Other_____

3)     Are you aware of any combo or discount at your favourite fast-food joint?

*To prevent the survey from becoming void, please answer to the best of your ability and truthfully*

Yes ___    No ___   


1)     If you do go out for fast-food, which place do you go to most?

Fast-Food Joint


Dairy Queen


Burger King








2)     Before you purchase your food, how many joints do you visit?

Number of Times












3)     Are you aware of any combo or discount at your favourite fast-food joint?







Market Share:

 After the survey was conducted, the results for the fast-food restaurant with the biggest market-share within a teenage demographic were tabulated:

Fast-Food Chain

Percentage of Market Share

Dairy Queen


Burger King








Graph of tabulated data:

Calculation of Concentration Ratios:

 A concentration ratio indicates the size of firms and acts a representation of their dominance in the industry. For example, a low concentration ratio indicates a competition within the firms in a specific industry while a concentration ratio of 100% indicates a monopolistic market structure.

If one firm has at least 80% of market share- Monopoly

If two out of five firms have at least 80% of market share- Duopoly

If three out of five firms have at least 80% of market share- Oligopoly


McDonald’s market share- 51.7% (not a monopoly)

McDonald’s market share + Wendy’s market share (51.7 + 22)- 73.7% (not a duopoly)

McDonald’s market share + Wendy’s market share + KFC market share (51.7 + 22 + 10.2)- 83.9% (oligopoly)

 The results display that there is an oligopoly present. The concentration ratios of the top three firms had to display a total percentage of market share of at least 80%. In this case, the top three out of five firms had 83.9% of the market share. After interviewing the franchise owners of the specific locations, no one had answers to the fact about certain dominance over other firms, other than the fact that product quality might be a factor.

Price Tracking:

 The investigation of three products which are sold throughout all five fast-food chains was conducted. The food items were: Ranch Chicken Wrap, Chicken Sandwich, and Garden Salad. The cost of these products was closely monitored for 50 days throughout the summer to see if any change in price did occur. This will allow for an investigation on whether firms are price takers or price setters.




History of Canada Post Corporation

Canada Post Corporation

Its circuit reflected an agreement, which had created over directly around 20 years and was recognized by 3 dynamic governments, about the necessity for another course for the plan of postal organizations in Canada. The CPC, under the Canada Post Corporation Act, has a wide order to work postal organization for the transmission of messages, information, resources, and stock and to give other related organizations. Outside of its letter organization, CPC fights explicitly with various suppliers and has comparable flexibility thoroughly enjoyed by private-division dares to move all through business segments and organizations. These “Engaged” activities of CPC reflect the verifiable background of postal organizations in Canada and elsewhere.

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Canada post Corporation is a well-known delivery company across Canada. They had ups and downs in the business, for example strikes etc. Today I am going to tell you about Canada Post Corporation’s history as well as ups and downs faced by them. Canada Post Corporation was made as a CROWN CORPORATION in 1981, as the successor to the Post Office Department. Its fuse mirrored an accord, which had developed over right around 20 years and was acknowledged by 3 progressive governments, about the requirement for another course for the arrangement of postal administrations in Canada. Clients had overwhelmingly whined about the administration and unwavering quality of the Post Office Department, especially after a progression of strikes during the 1970s. Postal associations contended that their aggregate haggling rights were restricted as long as they were government workers and required to consult with government offices and divisions as opposed to postal administration. The administration itself was worried about the absence of monetary and administrative responsibility and the subsequent development in the working deficiency of the Post Office Department, which in 1980-81 was nearly $500 million. The CPC, under the Canada Post Corporation Act, has a wide command to work a postal administration for the transmission of messages, data, assets and merchandise and to give other related administrations. The arrangement of “all inclusive” letter administration or administration to all Canadians anyplace in Canada at moderate, uniform rates is key to this command. Outside of its letter administration, CPC contends specifically with different providers and has a similar adaptability delighted in by private-division ventures to move all through business sectors and administrations. These “focused” exercises of CPC mirror the historical backdrop of postal administrations in Canada and somewhere else. Canadian postal organizations have been giving bundle administrations since 1859, unaddressed publicizing and printed issue dispersion administrations since 1903, assisted conveyance of records since 1914, “cross breed” printed copy electronic administrations since 1972 and messenger administrations since 1979. In 1990 the CPC shaped Canada Post Systems Management Ltd (CPSML) to showcase Canada Post frameworks and innovation around the world. Since its creation, CPSML has had 80 effective undertakings in 38 nations. (, 2019)

Ecommerce: – Canada Post works a customer facing facade that moves an assortment of stamps, and postal supplies to general society. The individual shop is centered around ostensible postage, shipping supplies, and prepaid envelopes while the authorities shop has a choice of constrained release authoritative and memorial stamps just as coins. On October 26, 2010, Canada Post propelled an examination shopping administration for Canadians. This administration, Canada Post Comparison Shopper, enabled customers to discover and contrast items accessible with Canadians from more than 500 stores over the USA and Canada. Outstanding highlights included value examination, store arrangement data, cross-outskirt transportation, obligations and charges estimation, value history outlines, surveys, and shading accessibility. As of October 2012, the Comparison Shopper administration is never again accessible. (, 2019)

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Strike: – The Canadian Union of Postal Workers said Tuesday it has given strike notice to Canada Post that specialists could stroll off the activity as right on time as one week from now. The association speaking to 50,000 Canada Post workers said pivoting strikes will start Monday if assertions aren’t come to with the Urban Postal Operations and Rural and Suburban Mail Carriers bartering units. The size of the activity will depend to a limited extent on how talks go in the coming days, however, association president Mike Palecek said they would hope to abstain from burdening people in general. “Our aim is not to disrupt the public, it’s not to disrupt the service that we provide, that we’ve been defending for years, so we’re trying to come up with ways to put some pressure on Canada Post without impacting the public.” The association chose to issue the strike sees after the about year-long talks slowed down with the opposite sides genuinely far separated, said Palecek. “We’ve said we would remain at the table as long as progress is being made, and we’ve reached a point where we’re not seeing a lot of progress.” (, 2019)

Bibliography (2019). Canada Post Corporation | The Canadian Encyclopedia. [online] Available at: [Accessed 26 Feb. 2019]. (2019). Canada Post. [online] Available at: [Accessed 26 Feb. 2019]. (2019). Canada Post workers could go on strike as soon as Monday | The Star. [online] Available at: [Accessed 26 Feb. 2019].

Global Warming And The Effects On Canada

In the past couple of decades, the world has seen a drastic change in the rise of climate alterations and resource scarcity. This is mainly due to the affects from carbon pollution, greenhouse gases and global warming. The highest concerns with global warming are those of carbon pollution that not only harms the environment but also the ozone layers. Canada is one major example of a country where global warming has affected its climate and its forestry in both positive and negative ways. However, the positive impacts are dimmer than the negative affects. The paper will give a clear insight of how global warming has affected Canada both positively and adversely in terms of its economy, soil, forestry, and environment.

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Global warming occurs when the Earth’s temperature shows an abnormal increase due to the effects from pollution and greenhouse gases being trapped in the atmosphere (World Almanac, 2000). Carbon pollutions are one of the greatest root effects of severe hot climate changes. This is clear evidence in Canada where as global warming has gradually increased the temperature and has caused drastic changes in the environment. Globally, Canada is dominantly known as the highest carbon polluters in the world, second to Unites States. The emissions have risen more than 30 percent since the last decade (Leahy, 2010). These emissions directly contribute to the long lasting affect of global warming on climate and Canadian soil. Most Canadian cities annually produce about 20 tons of carbon dioxide per capita, placing Canada among top three nations in terms of per capita contribution to potential climate changes (Roseland, Connelly, and Hendrickson, 2005). The major gain from this trend of pollution will only further assist in the path of global warming where temperature rising would be inevitable and will cause more damage in the near future. The rise in temperatures would proportionally harm Canada’s Boreal forests. Over the past six decades, the mean temperature in Canada has warmed by 1.4 degree Celsius and six have occurred within past decade. Due to Canada having a large forestry industry, the impact from global warming in this sector of the environment is very significant. Health is another factor that would be positively and negatively be affected due to climate changes cause by global warming. With greater heat waves, respiratory ailments that are due to air pollution would increase and tropical diseases would also increase (West Nile Virus) at the same time (Whitgott et. al., 2010). However, the diseases from cold weather would decrease at the same time.
Effects are made by the government and pressure from scientists and individuals who are favor of the idea of having a protected wilderness/ forestry yet, the climate change becomes an obstacle with greater chance of damage done to the system then preserved. As climate changes become more drastic and unfavorable, the effect on Canada’s forest gets more severe. With increase in global warming, there is an increase in forest fires, habitat destruction, and many drought stresses. Although forest fires are essential to forest as it is a key factor that maintains the diversity of an ecosystem, but many recent forest fires are caused by unnatural consequences. The main cause of forest fires remains the climate change and human- caused origins. The human cause increase in forest fire is solely dependent on human occupation and extensive usage of the boreal forest and resources (Weber and Stocks, 1998). In many cases, lightning causes are also directly related to the increase in forest fires. The increase lightning-caused fires are due to the facts that there is an increase in CO2 emission in the atmosphere. Climate changes in boreal forest generally predict warmer and drier conditions, which directly causes fire. The habitat destruction/modification is another aspect of the climate change due to global warming that negatively impacts the forests in Canada. In the boreal region of Canada, pest-caused timber losses are as much as two times the annual depletion due to the fires (Volney, 2000). As global warming takes its toll, the warmer weather and shorter winters would only cumulate to favor the pests that will infest many trees (pine in particular) and slow the reproduction as well. Thus, being a threat to Canada’s largest timber industries. With increase in temperature, and rise in carbon dioxide emission, it only adds up to the precipitation and increase in droughts. As the glaciers melt due to warm conditions, it consequently affects the sea level which then affects the forest growth with impact of both variations in warmness and precipitation (Wien and Hogg, 2005).
The Canadian animals and fisheries are also affected by global warming causing climate changes. Species with limited biological traits are currently at risk of being extinct with least capabilities to adapt naturally. It was determined that climate change may have negative affections on endangered species in Canada (Lundy, 2008). Migratory birds and aquatic species such as some types of fishes are at risk of being extinct. Atlantic salmon and whitefishes are considered as endangered species due to climate changes. Under climate change, the Atlantic salmon and whitefishes will be threatened by loss of suitable habitat conditions which is mainly due to warmer water temperatures (Lundy, 2008). With respect to birds, Barn Owls and Eskimo Curlews are also some examples of birds that are negatively impacted by climate changes under global warming. Climate changes have been the potential cause of the reduction in the population of these birds. These birds have been northward shifted due to temperature rises and to some extent, due to warming of the northern coastal and freshwater ecosystem used for breeding purposes (Lundy, 2008). However, with warmer temperatures, birds and fisheries that are adaptive to the system of warmer weather will migrate to places such as Canada for their breeding purposes. Signs of tropical birds have already been traced in some parts of the country as well as some new breeds of fishes that were not present before. In addition, due to warm temperatures, fishes such as bass and sturgeons would be benefiting as their habitat would expand. Thus, these are some positive impacts of climate changes in Canada.
The climate change due to global warming is also adversely affecting the farmers in Canada. Longer and warmer growing seasons would inevitably give a higher yield, but it would also cause severe droughts in some parts of the country such as the prairies (Bohn, 1995). Some places in prairies would become too dry to grow grain crops, which would result in migration of the cropland to areas where grain crop is grown with proper climate. Because of dry conditions, rich crop nutrients would give a rise to dust storms. For instance, because of global warming, the potato crops were suffered due to heavy drought and minimum rainfalls. This was mainly due to high temperatures that were recorded in the prairies. In addition, the frequent droughts have resulted in the promotion of soil erosion, which directly encourages forest fires and harming the agriculture sector at the same time. Thus, irrigation is one of the options farmers are now willing to take in order to protect the land and the demanded crops. In terms of economic sustainability, as shortages accumulates, due to droughts, the cost of food would increase automatically. On the other hand, climate change caused by global warming is also seen beneficial to the crops and maximizing the production. Since plants thrive on carbon dioxide that is released in the atmosphere by humans, greater carbon dioxide level in atmosphere could also result in greater production and availability of foods (Bohn, 1995). This is only established if the farmers adapt and are willing to move and tackle the droughts by planting variety of crops. However, the benefit is clearly depended upon the farmers’ adaptation towards the changes in climate. Thus, the negative impacts are still greater than those of the positive ones.
Rising sea levels would also be negatively impacted and would affect the coastal zones. As warmer temperatures shifts northwards, the glaciers would inevitably melt which would cause a rise in sea levels. This would directly impact the beaches, the coasts, and water quality. The beaches would result in greater erosion, there would be greater coastal flooding and there would also be mixture of saltwater into aquifers. It is predicted that by the end of 21st century, the sea level would increase to 18-59 cm depending upon the amount of pollution (Whitgott et. al., 2010). This would eventually lead to migration of people moving upwards. Thus, because of pollution and contaminated water quality, the recreation and tourism in Canada would also be negatively affected. Because of prolong summers and the rise in sea levels, the beach maintenance would increase with an increase in erosion at the same time.
On the contrary, climate change due to global warming has its own significant positive impacts. For instance, higher wind speed in mid-latitude would decrease the cost of wave and wind energy (Tol, 2007). With reduced ice glaciers in the Arctic, there is more access to the harbors and less exploitation cost of extraction of oil and minerals in the Arctic. In addition, the warm temperatures could also aid in improving transportation in Canada. With shorter winter periods, there are capabilities to connect new routes from north end to south end. The cost of transportation would also subsequently decrease with more efficient services. The climate change can also bring forth tourist towards the poles and directly up to the mountains (Tol, 2007). Because of increase in tourism, there would be an increase in revenue for Canada. With warmer climate due to global warming, there are presence signs of diverse tropical birds/fishes and vascular plants that are adaptive to the temperature change occurring in Canada. Fork three-awned grasses are spotted in Ontario and Quebec (Lundy, 2008). These plants are northwardly shifted due to the change in climate. In addition, small-flowered sand verbenas are also positively impacted by climate change in Canada. These particular vascular plants are more likely to increase in growth in Canada as warmer and drying seasons increase. Night snakes and Northern Bobwhites are two types of species that are positively impacted by the climate change in Canada. The night snakes may stand to benefit from the climate change occurrence in Canada as these reptiles would be more adaptive to the newer climate changes. These species prefer areas where it’s hot, dry and desert like. Thus, as global warming takes its toll in Canada, these species will be more profoundly be spotted in British Colombia. Northern Bobwhite birds are another example of species that will be positively impacted by climate change in Canada. Over the past century, these birds have decreased in population due to habitat loss, but under high carbon dioxide emissions, the bobwhite birds would be northerly shifted towards Canada. Thus, climate change due to global warming would favor the growth of Bobwhite Birds across Canada. However, even with the positive impacts due to climate change, the negative effects are more severe and needs close attentions in order to prevent the loss in habitats or other species.
To conclude, the negative impacts would more likely have greater importance and would cause severe damage to the environment as global warming rapidly influences the climate change in Canada. In order to prevent further harm done by global warming, it is important for individuals to reduce the greenhouse gases and high pollution that are caused by them. Furthermore, adaptation and mitigations are two other responses against the change in climate. By mitigating, government can take a step towards educating individuals to take responsibilities and reduce greenhouse gases to lessen severity of future climate changes. Farmers can adapt to the change in climate and start to analyze the scenario in a positive manner. By adjusting farming practices to muddle through with the droughts caused by climate change, the economical harm would be minimized. Thus, tactical strategies are needed to tackle the issue cause by global warming. Although there are positive impacts to global warming, yet the positive impacts are minimal compare to the damage done by the negative impacts.
“Environment Global Warming and Greenhouse Effect.” World Almanac 2000. Mahwah: World Almanac Books, 2000.
Bohn, G. (1995, February 21). For Canadian farmers, heat’s a mixed blessing Series: GLOBAL WARMING WARNING. The Vancouver Sun, p. B.4. Retrieved October 31, 2010, from Canadian Newsstand Core. (Document ID: 21324042).
Brooymans, H. (2010, July 4). Boreal efforts draw praise; Canada on track to create world’s best protected wilderness. Edmonton Journal,A.1. Retrieved October 31, 2010, from Canadian Newsstand Core. (Document ID: 2073903491).
Hogg, E. & Wein, R. (2005). Impacts of drought on forest growth and regeneration following fire in southwestern Yukon, Canada1. Canadian Journal of Forest Research, 35(9), 2141-2150. Retrieved October 31, 2010, from Research Library. (Document ID: 950425571).
Leahy, S. (8 October). CANADA: SEEING CLIMATE CHANGE “PROSPERITY” INSTEAD OF CALAMITY. Global Information Network, Retrieved October 31, 2010, from Research Library. (Document ID: 2157446291).
Lundy, K. Climate change and endangered species in Canada: A screening level impact assessment and analysis of species at risk management and policy. M.E.S. dissertation, University of Waterloo (Canada), Canada. Retrieved October 31, 2010, from Dissertations & Theses: Full Text.(Publication No. AAT MR54837).
Roseland, M., Connelly, S., & Hendrickson, C, D. (2005). Toward Sustainable Communities: Resources for Citizens and Their Governments. American Planning Association. Journal of the American Planning Association, 66(4), 448-449. Retrieved October 27, 2008, from Research Library database.
Tol, R. (2007). Why worry about climate change? A research agenda. Dublin: The Berkeley Electronic Press. Retrieved October 31, 2010, from Research Library.
Volney,W. & Fleming,R. Climate change and impacts of boreal forest insects, Agriculture, Ecosystems & Environment, Volume 82, Issues 1-3, December 2000, Pages 283-294, ISSN 0167-8809, DOI: 10.1016/S0167-8809(00)00232-2. Retrieved October 31, 2010, from Research Library.
Withgott, S, Brennan, S, & Murck, B. (2010). Environment: the science behind the stories, first canadian edition. Canada: Pearson Education Canada.
Weber, M, & Stocks, B. (1998). Forest fires and sustainability in the boreal forests of Canada. Royal Swedish Academy of Science, 27(7), 545-549.

Impact of Population Dynamics in Canada

Impact of the current population dynamics in Canada and the best strategy/ strategies to adapt to the current situation

The population of Canada is aging, and fronting population decay in spite of near record high migration levels. This demographic tendency has substantial consequences from a public policy perspective, in relations of economic evolution, public expenses and social organization. Canada, through a total fertility rate (TFR) of about 1.5, is not unaccompanied in facing this encounter; other developed nations are previously addressing the problems related by an age structure categorized by intensely growing numbers of elder people and dwindling numbers of kids and employed age citizens. Most developed nations identify this demographic encounter and numerous have applied a variety of policies to decrease its scope as well as alleviate its potential influences. Within North America the condition is slightly unique. The United States has a comparatively great fertility rate, soaring just below the replacement level of 2.1; frequently imitating a very great fertility rate aimed at Hispanic Americans, in addition stable settlement. Mexico’s fertility degree is well above replacement as well as has a newer population generally. Canada has had a fertility percentage beneath replacement level ever since 1972 however has an impartially high settlement rate. Maximum Canadians, if they are conscious of the matters at play, undertake immigration will take overhaul of the challenges related by an aging populace such as a lessening work force and rising dependence ratio. Rendering to Figures Canada, Canada’s population is getting old rapidly and senior citizens will outstrip kids in about an era. Population forecasts for Canada’s main metropolitan areas moreover highlight how present fertility and immigration tendencies will mark cities very contrarily. It has been predictable that through 2051, 10 out of the 26 main cities in Canada will have increasing populations, whereas 12 will perceive population decay. Of the metropolises predicted to be minor, it could be as little as half their present size. And developing cities will be newer and more varied. Since in Canada labor represents nearly two-third of the revenue share, the anticipated slowing in labor force growth increases important labor market as well as economic growth challenges (Annabi, Nabil et. al. 2009).

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Demographics are accurately at this interval of individual as well as collective interests (Demeny. 1986). The sum of children to have, in addition where to exist, is enormously personal queries; however the society likewise has an interest as these behaviors impact collective happiness. The number as well as structure of its affiliation is of pure interest to the entire society, and there is a genuine source for inter-personal impacts in favor to the related behaviors which are far away from virtuously private. What might we propose as a populace policy for Canada, in the logic of an idea of the favored demographic future as well as a debate of the means to transfer in that direction. In my opinion, this might instigate by two elements: (1) the compensations of some population development or at least evading decline, as well as (2) sluggish rather than speedier aging. Considerable demographic development can be frugally useful, or at minimum it has been in the historical, but evading decline is perhaps more significant from a financial point of vision (United Nations. 2000). Decay would mean numerous extra investments and problematic adjustments of numerous kinds, and it would comprise mainly noteworthy aging. On the further hand, environmental influences point to the difficulties of high growth. Though population growth could inspire more ecologically friendly consumption as well as technology, there is no evading the straight multiplier of population extent on ecological impact, specified our principles of living based on great use of energy and additional forms of harmful consumption (Daly. 1999). In the background of doubts associated with ecological questions, the sensible course of act would be to pursue to diminish the impact (LeGrand. 1998).
In relations of specific constituents, fertility is the vital for both growth as well as aging. There is evidently limited impending for influence in respect to fertility, certain would say there is nothing. Still, reflections on nations that have principally low fertility, for example in Southern as well as Eastern Europe, propose that these very little levels arise when women have prospects in education as well as the labor force, however the family remains customary. If women have to engross the family work, particularly once there are kids, they are mainly focused on to highlighting their parts in the paid work range, where prospects are more equivalent. Fertility in a contemporary society might be made constant by strategies that would support families, irrespective of family type, decrease gender dependences in families, and apt a better allocation of earning and caring actions among males and females (Beaujot. 2000). This would not probably bring fertility beyond replacement; however it may permit more individuals to have the children that they initially envisioned. That is, we should pursue to remove the obstacles to childbearing over better partaking in the costs of kids by fathers and the wider society.
Mortality is informal since lengthier and restored lives are a extensively shared value. As designated earlier, in a period of deferred degenerative as well as hybristic mortality, main are the threat factors and management. It points to the significance of constant public education on risk factors, laterally with developments in treatment. It likewise points to the numerous other bases for drawback that discourage persons from enchanting control of their lives. Other threat factors are ecological, where more exploration is required, but there is substantial evidence on the influence of environmental excellence on population wellbeing. In effect, there is additional information on the effect of atmosphere on populace than the effect of populace on atmosphere. However here again, the more danger is the deficiency of political drive to accomplish from the exploration in a policy path.
Whereas immigration objectives work quite well, there is requisite for more debate on the basis for fixing these objectives in terms of together number as well as composition. Yet the Immigration Legislative Review (1997) perceived that, for numerous, sums of immigration were not an “interesting topic” as well as that the significant problems were not just figures. The costs as well as remunerations of migration towards the receiving society requisite fuller exploration, particularly in terms of the discrepancy costs and profits to diverse interests and fragments of the society. For example, it is determined in Sweden that by evading the inexpensive solution of guest labors, the society was encouraged to mark more space for females in the labor force, counting policies that would permit labors to have children. Whereas immigration is esteemed in terms of getting diversity, abundance, pluralism as well as contact with a wider world, population regeneration that is markedly based on immigration rather than fertility resources much change as well as possibly less probable for socializing novel members into a shared society. If one contemplates immigration in relations of pressures from exterior of Canada, one mode to grip these pressures is over higher immigration, laterally with fair trade as well as international support. Evidently, higher immigration is of attention to persons who are pursuing to transfer to Canada, and it is frequently of attention to sending societies. I would approve by the Economic Council of Canada (1991) that the situation for migration should not be completed in demographic or else economic relations, however in socio-cultural relations. Whereas immigration somewhat decreases aging, it is an overstatement to say that migration will correct the age arrangement. Likewise, immigration perhaps conveys net macro-economic remunerations, counting a source of labor market regeneration, however internal contemplations are more significant to macro-economic development. As an alternative, the case for migration requests to be made in relations of pluralism, ethnic dynamism, humanitarian apprehensions, and candidness to a wider world. Therefore the level as well as composition of migration essentials to be centered on a political judgment concerning the kind of society that we dearth to shape. We need to develop a civilization that will have virtuous adaptive capability, by being together diverse as well as cohesive. Hence the judgment is neither demographic nor financial, however in terms of the type of immigration that will exploit the occasionally contradictory components of diversity in addition to cohesiveness.
That leaves worldwide migration, where the strategy basis is best recognized. Whereas the instant demographics of immigration are rationally well proven, the part that these should show in defining immigration levels is far fewer vibrant. There are the small term remunerations to the labor market, laterally with the short term expenses of incorporation, but the long term profits of a bigger population rests on the comparative weight given to financial and ecological considerations.
In Europe, Asia as well as Australia the reactions to their condition have been diverse. Every nation has engrossed on specific policy responses to multifaceted issues. Most have selected to focus on increasing or upholding a fertility proportion adjacent replacement levels though also paying thoughtful attention to labor market problems such as growing the labor force addition of women as well as other under-represented assemblies, and later superannuation ages for workforces. Some, maximum notably Australia, have likewise looked towards immigration to decrease the probability of reductions in population extent or uncontrollable ageing tendencies. The lessons from additional industrialized states comprise the significance of having a mix of strategies in place to ensure a maintainable population base. Associated to these reactions in other nations, the Canadian approach is different. In Canada, comparatively little consideration has been paid to matters of sustainable population and nothing has been remunerated to problems of fertility rates exterior the region of Québec. The Canadian strategy response has been mainly engrossed on immigration as a basis of development for the labor market and as an extenuating feature for ageing inclinations (McDaniel, Susan, A., Julia Rozanova. 2011). More lately some consideration has been engrossed on other labor market strategies, mainly exploring ingenuities around later superannuation for Canadian workers. The region of Québec has applied more clearly pro-natalist strategies including cash incentives as well as, more lately, general childcare.
We might agree or disagree on these particulars; however the broader difficulty is the absence of an established basis for strategy that would pursue to endogenize population. Observing at the Australian case, McNicoll (1995) discovers that there are numerous impairments to population strategy in liberal democracies. In addition to the absence of a political source for long-term forecasting, the stress on individual well-being, and the lack of consideration to scale, there is likewise a propensity for “government to perceive its electorate only in terms of systematized groups as well as its role that of judging competing statements” (p. 18). In the Canadian situation, Pal (1993) has analyzed in what way numerous “civil society” assemblies, frequently set up by the state, are likewise pursuing rents through the political structure and might control plans based on explicit interests. It would seem that these benefits narrate less to the population as an entire, than to precise apprehensions similar to those of family, feminism, atmosphere, wellbeing, multiculturalism or immigrants. That is, the possible components to discussion of population plan are engrossed in distinctive political dominions and they are accordingly reactive to separate relatively than common benefits. Some of the components would even be in contradiction of any discussion of population plan. There is abundant room for further investigation. We requisite to improve our considerate of the trends in the constituents of population change in directive to have additional secure bases for the forecasts assumptions. Canada essentials further analyses of the inferences of both the actual as well as the potential demographic modification. We likewise need further discerning on the policy side of the developing demographics. In heartening demographers to contemplate of policy, I am encouraged by Canadian basic democratic alignment to count everybody equally in the entire population. Whereas there is scope for those who think of the benefits of specific assemblies, like the elderly, kids, women, visible subgroups, families, or else immigrants, there are likewise compensations to looking at the entire population, and its well-being, counting everybody equally.
Annabi, Nabil, Maxime Fougère, and Simon Harvey. 2009. “Inter-temporal and Inter-industry Effects of Population Ageing: A General Equilibrium Assessment for Canada.”LABOUR: Review Of Labour Economics & Industrial Relations23, no. 4: 609-651.Business Source Complete, EBSCOhost(accessed March 12, 2015).
Beaujot, Roderic and Judy-Lynn Richards, 1996. “International Equity in Reforming the Canada Pension Plan,” Policy Options 17(9).
Daly, Herman, 1999. “From empty world economics to full world economics,” in P. Demeny and G. McNicoll, The Earthscan Reader in Population and Development. London: Earthscan Publications, pp. 270-78.
Demeny, Paul, 1986. “Population and the invisible hand,” Demography, 23 (4): 473-488.
Economic Council of Canada, 1991. Economic and Social Impacts of Immigration. Ottawa: Economic Council of Canada.
Immigration Legislative Review, 1997. Not Just Numbers: A Canadian Framework for Future Immigration. Ottawa: Minister of Public Works.
LeGrand, Thomas, 1998. “Croissance de la population mondiale et environnement: les enjeux,” Cahiers Québecois de Démographie 27 (2): 221-252.
McNicoll, Geoffrey, 1995, “Institutional impediments to population policy in Australia.” Australian National University, Working Papers in Demography No. 53.
Pal, Leslie, 1993. Interests of State: The Politics of Language, Multiculturalism, and Feminism in Canada. Montreal: McGill-Queen`s University Press.
United Nations, 2000. Replacement Migration: Is it a Solution to Declining and Aging Populations? United Nations: Population Division.
McDaniel, Susan, A., and Julia Rozanova. 2011. “Canada’s Aging Population (1986) Redux.”Canadian Journal On Aging30, no. 3: 511-521.CINAHL with Full Text, EBSCOhost(accessed March 12, 2015).

Oil Production and Investment in Canada

The major geographical area of Canada is rich in natural resources like energy, minerals and timber. Amongst all, energy, especially crude oil, contributes most to the prosperity of the Canadian economy. As the 6th largest producer of oil, Canada produces 4.6 million barrels of oil per day (MMb/d), of which exports constituted 3.7 MMb/d and imports being 0.6 MMb/d.[1] [2] The country produces more oil than it imports or consumes; thus, Canada is considered to be a net exporter of crude oil. Provided that the oil and gas industry contribute to around 8% of Canada’s GDP in 2019, oil business, therefore, plays an important role as one indicator of the Canadian economy.[3] In 2014, due to factors like the unprecedented oil production growth in the US and weakened global demand, especially from China’s slower economic growth, the world’s oil price collapsed by over 70 percent to $40 a barrel in January 2016. Despite the gradual recovery to about $60 a barrel, the current price level is 50% under the pre-shock level. As a result, the lower oil price can have material impacts on the Canadian economy through different channels. This paper aims to provide the economic consequences of falling oil prices with empirical evidence supporting the net negative impact on the Canadian economy. The adverse effect of a negative oil shock is transmitted through both the supply and demand channel and demonstrated by major economic factors of employment, exchange rate, trade balance, and government revenue. Corresponding to the worsen Canadian economy, this paper will conclude with the recommended policies to remove the negative externalities or commodity cycle. 

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Producer output/capital investment 
The fall in oil price negatively affects both the supply and demand sides of the Canadian economy through its effect on producer output and capital investment. Given that 96% of Canada’s oil is produced in the provinces of Alberta, Saskatchewan, and Newfoundland and Labrador, there would be an initial disproportional negative effect in these regions.[4] For example, oil producers, especially the upstream providers, would experience a sharp decline in revenue from the reduced price. In short-run, due to fixed production technologies and capital inputs, oil projects begun before the downturn would be completed. However, oil firms would reduce future investments in new oil projects as lower price decreases the economic feasibility of capital-intensive oil projects. Figures from 2015 showed that the oil industry was expected to lose 37% revenue totalling to CAD$43 billion from reduced production and investments.[5] According to CERI, “every Canadian million dollars invested and generated in the Canadian oil and gas sector, the Canadian GDP impact is CAD$ 1.2 million.”[6] The cutback in oil projects would further tamper Canada’s already weak business investment relative to other economies.[7] Additionally, the lessened profitability discourages not only domestic but also a foreign investment in Canada. Indeed, after the price shock in 2014, many large foreign-controlled international businesses operating in the oil sands have withdrawn their investment and sold their equity shares (reference) as uncertainty increased.The adverse effects spill over to the demand for oil-field related sectors through significant ­capital expenditure on non-residential tangible assets, particularly in the industrial sectors such as construction and manufacturing.[8]  Oil producers would also exert pressure suppliers to reduce price, hence may further reduce their profitability. On the other hand, the lower oil price, as an input cost, would benefit the non-energy sector, especially for those where petroleum constitutes a significant part of operating costs such as the manufacturing, transportation and airline industry. However, the lower energy cost on non-energy producers and consumers only partially mitigates loss in revenue and investment triggered by the oil price decline. As a whole, Canada’s productive capacity and economic growth is weakened through reduced oil-related output, orders and investments.  
The curtailment of oil production and investment in countering the price shock would generate a small net negative impact on the country’s employment growth. The immediate direct impact is in the local oil sector, which contributes to around 205,000 (direct and indirect) jobs across Canada [Fact 5]. According to CERI report, “every direct job created in the Canadian oil and gas sector, two indirect and three induced jobs in other sectors are created in Canada on average” [Fact 6]. Hence the scale back in operational spending and cost-cutting would result in the layoff of workers in both the oil and oil-related sector. This would increase the unemployment rate mostly in the oil-related region, however, given that the oil sector is one of the least labour-intensive industries in Canada, the job loss’s effect on the Canadian economy is less severe than other economic factors. Meanwhile, additional jobs would be created in the non-energy sector, especially for an industry that is more energy-intensive like airlines and transportations, as they benefit from lower input costs. Industries that depend on consumer spending, such as retails and wholesale, would also enjoy higher profitability aside from lower oil cost, as consumers have additional discretionary income from lower fuel costs. Overall, despite job creations in other regions and sectors, the weakened growth from falling oil prices in the energy sector leads to a negative impact on employment in Canada in the subsequent years of the oil shock.   
Exchange rates
Due to the importance of oil as a commodity in the Canadian economy, the decline in oil prices would result in depreciation of the USD/CAD exchange rate. Given that the majority share of crude oil are exported to the US, with a share of 96% in 2018, the reduction in price greatly reduces the inflow of foreign currency into Canada.[9] The depreciation in the exchange rate would, in turn, benefit Canadian exports as it increases its international competitiveness in terms of a lower relative price converted from the Canadian dollar. Due to the high dependency of the Canadian economy on the US, most of the increased demand from currency depreciation would come from the US. This would most benefit the Canadian manufacturing sector due to its export-oriented nature. The boost in US consumer’s disposable income form lower oil prices would then have a positive impact on the demand side for Canada. However, for Canadian consumers and businesses, this would increase their cost for foreign imported goods and services, which would reduce their income. Overall, the depreciation of the exchange rate would positively contribute to the exportable sector of the Canadian economy from the increase in foreign demand.   
Academic references: 

Carbone, J.C., & Mckenzie, K.J. (2016). Going Dutch?: The Impact of Falling Oil Prices on the Canadian Economy. Canadian Public Policy 42(2), 168-180. 
ELDER, J., & SERLETIS, A. (2010). Oil Price Uncertainty. Journal of Money, Credit and Banking, 42(6), 1137-1159. Retrieved March 4, 2020, from, Hussein & Wang, Eric Zengxiang & basso, Michael. (2018). Dynamics of Canadian Oil Price and its Impact on Exchange Rate and Stock Market. International Journal of Energy Economics and Policy. 8 
Sek, S.K., Teo, X.Q., & Wong, Y.N. (2015). A Comparative Study on the Effects of Oil Price Changes on Inflation.
Plourde, A. (1987). The Impact of $(US)15 Oil on the Canadian Economy: Evidence from the MACE Model. Canadian Public Policy / Analyse De Politiques, 13(1), 19-25. doi:10.2307/3550539


Urban Poverty in Canada: Political Analysis

Submitted to: Professor. Nugent
Submitted by: Nadia Haidar
Urban poverty in Canada has become one of the major factors that require consideration in a political perspective to arrive at a solution. This problem took its foothold in the country between the year 1990 and 2000. According to a report by the urban poverty project, in the year 2012 about half of Canada’s population an amount totaling to 15.3 million people lived in just four of the urban areas among them Toronto. This makes the country of Canada one of the most urbanized countries with a population of 25 million people living in the urban areas. Among these people about one of every six people lived in Poverty. In the year 2000, about 3.3 million people who are poor Canadians had their residence in the Census Metropolitan areas. As the population of the people in the Metropolitan area grow, the rate of poor urban dwellers increases at a faster rate. Among the major city of Canada, the City of Toronto has the largest number of low earning people with a population of about 771530 and has a poverty rate of about 16.2%. (Katherine, 2007)
With the upcoming elections of the Ontario provincial election, a city election, and a federal election, this paper tries to focus on the election in terms of the impact it would have on the geographical urban poverty. It also focuses on the platforms and candidates take on the various ideologies that they advocate for in their campaign in relation to the urban poverty. The paper also focuses on the debates and the effect of quality on the people as per the decision they make in voting for the leaders.

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One of the parties in with fighting for the poor urban people is the Communist party. The party which in the provincial elections due to happen on June the 12th, is running 11 Candidates has on its website encouraged people to vote for the program in which the working class were fighting for. According to the 1990 to 2000 report, about 45% of people living in the urban area contribute to the GDP of Canada. Yet among these people, the poor have quite a good percentage. According to one of their candidates Elizabeth Rowley she promises to put the needs of the people first before cooperate greed. The party intends to achieve this by offering good jobs to its people, affordable renting and housing controls among others. (Rowley, 2014 ) In the communist party campaign they are pointing out clear that, there is a gap between the rich and the poor, pointing out that the poverty level is on the rise and unemployment is quite as high as well. As the provincial leader of the communist party Rowley points out that what they fear most is not the liberal party that has failed the people of Ontario, but the conservative party led by Tim Hudak. The conservative party is laying the facts clear that if elected they will lay down about 10000 people working in the public sector. According to the communist, this attempt would demolish the public sector. In attempt to slash the wages arguably, the conservative party would be contributing to the rise in the poverty level, greatly affecting the urban poverty negatively making it grow rather than decrease. Contrary to what the communist party is offering, with the likes of a quality public service with better health care and hospitals being one of their promises to the people.
According to the NDP, they have an economic plan, which involves a raise in the minimum wage rate to $12 per hour and later tying it to the inflation. This move of increasing the current paltry by a dollar per hour as it is currently at $11 per hour will help the poor in the province to make more money to live off well. (Stockton, 2014) This comes from the leader of the NDP Andrea Horwath. Asking the employers to pay more however, would result to the workers losing their jobs. The Capitalists aim of cutting off operation costs and raising the price of the goods, acting in the disfavor of the poor. According to the campaign of the NDP party, their argument is that increasing the minimum wage gives the poor people a chance to have a hold of the money, which they spend, putting it in the circular flow of the economy thus experiencing growth. To dispute this however, looking at a place where it has been in application, in the United States of America, a study after comparing the geographical contiguous regions whose minimum wage was different found that a high minimum wage rate related to the unemployment rate in the region. (Debra Burke) Looking at the facts on the ground it is also important to identify the people who are working below the minimum age, only 4.6 % of the people of Ontario that works below the minimum wage rate. While this seems like quite a good idea, the minimum wage rate raise may not be the solution to most of the problems.
The liberal party of Canada policy resolutions:
Most of Toronto seems to ignore the local politics, with the current mayor Rob Ford still running for office. There are a number of other candidates among them Ashok Sajnani, Morgan Baskin, a dentists and a student who are considered as long shots for the job. Arguably, they should start the city hall politics serving as a councillor but not in their opinion. The Conservative’s party candidate however John Tory deemed as one of the most likely candidate to topple Rob Fords leadership idea as per his fiscal strategies include lowering taxes especially property taxes which to some extent is in the favor of the poor. (Powell, 2014)
The debates of the parties in the Ontario representatives seem to carry weight on the people of Ontario based on their influence. The big parties do have a great say in the debates and the emphasis is majorly in them. The parties presented in the debates mostly are; the Liberal Party, the Progressive Conservative Party, and New Democratic party their leaders are Kathleen Wynne, Tim Hudak. The other parties, such as the communist party of Canada do not seem to get an equal platform with these two. The quality of the debates may be quite good since they are a great determinant of the polls; the politicians try their best to lay it out for the people the actions they are going to take once in their government. In a recent call from the doctors, they asked the four on the province political parties to engage in a debate involving health care. (CBC News, 2014) The poor people being among the great number of the 700000 Ontarians who do not have the primary access to such care needs clarification. The Liberal leader take on this through their leader Kathleen Wynne promised of primary access to a health care provider by the year 2018. According to Kathleen, this would cost less than $20 million. In the opinion of the Progressive Conservative party through their leader Tim Hudak, he suggested demolishing the existing health service and focusing on the employees like nurses as the frontline. The New Democratic Party leader Andrea Howarth plans to reduce the time by half that ER wait times take. Adding another 250 nurse practitioners in the emergency rooms was a further suggestion as well as 50 new family clinics working on a 24-hour system. Despite this suggestion, the request to have a formal debate that involves the four leaders would help the citizens make an informed decision. The health care anticipated debate is a good example of showing the quality of the debates since they greatly affect the decision of the voter. In a study that was carried out by Ipsos, show that the majority of the Ontarians whom were undecided about the leader they were going to support were going to make their decision based on the June 3rd debate. Thirty eight percent of the people make their decision on whom to vote for on the day after the debate. Thirteen percent of them wait until the last debate while fourteen percent will wait until the last week of the campaign, and eleven percent of the people make the decision on the day of the election. However, this is significant to the quality of the debate and how convincing they can be, the study also shows that sixty two percent of the Ontarians make the decision long before the elections begin with forty one percent of them not changing their decision throughout the campaign. Twenty-one percent of the Ontarians however might change their mind. (Ipsos, 2014)
An issue reported with the debates is about the inaccessibility to the debate by candidates of the provincial election of Ontario. On May, 29th 2014, a debate was held in Cambridge Ontario and was inaccessible to the people with disability. The event organizers did not put into consideration that the disabled people too would want to attend the all candidates’ debate. In this event, the local advocator of the people with disabilities Lyn McGinnis was not able to access the all candidate debate. Having an accessible venue is important to have a barrier free debate that all willing to attend can do so.
Conclusively, the results of the election will greatly determine the state of the urban poverty since the policy that the party that will win by a majority will determine the future of the people. Different people hold different opinions in the parties’ and have a strategy to make their condition better. The liberal party may, to majority of these people, see that they have been failed by the party since in their rule, unemployment has not been solved, greater disparity of the poor and the rich, and the greedy capitalists have not made it better for the people.
The political debates are of great significance to the election of the country. The quality of these debates is therefore required to be high to influence the voters to make their decision based on the policy that the different provincial parties make. Many families, including my own, have suffered through poverty decade after decade. It is up to us citizens to make this vote count, vote for the right party, and help end this vicious cycle of poverty so many Ontarians continue to suffer through.
CBC News. (2014, May 30). Ontario election 2014 :Doctors Want Parties to Debate .
Debra Burke, S. M. (n.d.). Minimum Wage and Unemployment Rates :A study of Contiguous Counties .
Ipsos. (2014, June 2). Whats Riding on the Ontario Election Leaders Debate. Retrieved from Ipsos News and Polls:
Katherine, F. G. (2007). A Lost Decade: Urban Poverty in Canada 1990 to 2000. Ottawa: Canadian Council on Social Development.
Powell, B. (2014, March 15). Toronto Mayoral election Profile: John Tory. Toronto Stars.
Rowley, E. (2014 , May 19) Communist Party of Canada. Retrieved from
Stockton, M. W. (2014, May 24).Minimum Wage in the Ontario Election and Canada. The True North Times.

Concentration of Media Ownership in Canada

Essay Proposal: Concentration of Media Ownership in Canada (TV vs. OTT)


Introduction & Key Questions

     For this research paper, I will summarize the current state of television broadcasting and cable ownership in Canada and examine the challenges that this industry must overcome to compete with Over-the-Top broadcasters. These are the three main questions that I will address to establish an informative evaluation on this sector of the media landscape and develop a well-rounded thesis.

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     First, why is it that ownership in the Canadian Cable industry is so highly concentrated between a few companies? For example, the Canadian Media Concentration Research Project released a graphic which shows that Rogers, Bell, Telus, Quebecor, and Shaw make up 91% of cable provider market shares in Canada.  Second, I would like to determine howthe CRTC and Federal parliament can work together to sustain the quality and quantity of Canadian television content. Also, are these regulators truly providing enough funding and support to the smaller media companies, so they can stay competitive?  Thirdly, what will happen to Canadian television broadcasters and cable television providers as Over-the-Top (OTT) media broadcasters continue to expand their products and services? Will there be more convergence of legacy media (television) to digital media, or will tv broadcasters adapt a higher concentration on live programming that OTT broadcasters are yet to provide?



    This essay will follow a structure that assesses Canada’s TV broadcasting and cable services to determine if they can prevent OTT broadcasters from taking over this platform of legacy media. First, I will explain what concentration of media ownership is, as well as how the media is regulated in Canada by the Canadian Radio-television and Telecommunications Commission (CRTC).  My introduction will be followed by an overview of the main social and political issues for Canadian television broadcasters. This section has several factors to discuss, such as accessibility, affordability and the amount of Canadian content being offered by owners to consumers. Afterwards, I will include some background information on OTT broadcasters and look at how this digital form of media compares to television as a legacy type of media.

     Finally, I will discuss how the few media corporations with control over broadcasting rights and cable subscriptions are limiting access to Canadian television content such as Sportsnet, TSN, Teletoon, YTV, and Much. I am planning to elaborate on this subject by referencing the case study of CBC’s ‘Hockey Night in Canada’ losing exclusive broadcast rights and advertisement revenue to Rogers. Once all these themes are covered, I can conclude with an informed opinion on what is going to happen to the Canadian television broadcasters and owners if they do not make any new adjustments to their services.







Annotated Bibliography


Cwynar, C. (2017). On thin ice: Hockey Night in Canada and the future of national public service media. International Communication Gazette, 79(2), 135–147.

     This academic journal discusses the consequences of rising sports rights fees and evolving digital media technologies for legacy public service broadcaster. Cwynar analyzes a case study about CBC public broadcasting losing control of the sole rights to air Hockey Night in Canada on their television channel (the rights are now shared with Rogers). The Scholar implies that a solution for CBC would be to work on projects that do not involve commercialized broadcasting, since it will satisfy other areas of television content that need more attention. This case study is a great example for me to work with for my essay topic. It visibly demonstrates how changes in the concentration of media ownership can create social and political concerns.


Malkinson, A. (2019, January 7). Media and Internet Concentration in Canada, 1984 – 2017 (UPDATED). Retrieved January 23, 2019, from

     The Canadian Media Concentration Research Project (CMCRP) is an initiative dedicated to producing yearly reports which consist of a media market and industry analysis. This website contains an archive of all the recent reports, as well as infographics that layout the percentage of ownership divided between each competitor in the Canadian media industry. I will be able to use these reports to reference any significant changes in the concentration of media ownership that took place over the past couple of years. For my essay, my area of focus will be narrowed down to reviewing information about Canadian cable providers and television broadcasters.

Mingant, N., Tirtaine, C., & Wagman, I. (2017). Reconceptualising Film Policies (pp. 209-221).

     In chapter 17 of this scholarly book, Ira Wagman provides his insight on the CRTC investigation of Netflix back in 2014, as well as the current television policies in Canada.

Professor Wagman describes the political and social challenges of regulating OTT broadcasters in Canada, specifically Netflix. For several years there has been on-going meetings to come up with a fair agreement that would allow local television broadcasters and actors from the Canadian Actors Union to compete in the market with OTT broadcasters. This section from ‘Reconceptualising Film Policies’ will provide me with a more thorough understanding of the story behind the conflict between legacy media (television providers) and digital media (OTT broadcasters).

Routledge.Spitz, D. J. (2017). U.S., Eh? Contrasting the Feasibility of À La Carte Television in Canada and the United States. ENTERTAINMENT LAW, 6(1), 31.  

     This academic journal suggests that North American Consumers are losing interest in television broadcasters and cable providers. The author discusses how this section of the media industry is trying to convince viewers to continue using their services by offering lower cost options and more channel choices. He goes on to describe the current solution being used, an a la carte television system with basic subscriptions and the option to purchase additional channels.

This source will help me with analyzing the accessibility and affordability of what Canadian cable providers are currently offering for consumers. Then, I will summarize this information in my essay, and compare it to the services being provided by OTT broadcasters.

Theckedath, D., & Thomas, T. J. (2012). Media ownership and convergence in Canada. Parliamentary Information and Research Service.

     This source from the Library of Parliament summarizes all of the changes and convergences in media ownership that took place in Canada during 2012. In this brief document, the scholars explain how the Canadian Media landscape has progressed both politically and economically since the early 2000s. This information is useful for my essay because it will allow me to compare aspects of previous media ownership profiles against the report from 2012, and the current concentration of media ownership. This would give me a clearer understanding about the history of my topic, and then, I can also determine how legacy media has adapted to compete with the OTT broadcasters.

The 2003 North-East US and Canada Blackout: Causes, Impacts and Recommendations


Current society has come to rely upon dependable power as a basic asset for national security; wellbeing and welfare; transportation and water supply; even amusement and relaxation-to put it plainly, almost all present-day life. Humans have expected that power will always be accessible when required at the flick of a switch. Most people have additionally experienced neighborhood blackouts brought about by a vehicle hitting a power shaft, or a lightning storm. What isn’t normal is the event of a huge blackout on a quiet, warm day. Boundless electrical blackouts, for example, the one that happened on August 14, 2003, is uncommon and comes unexpectedly [4].

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Approximately 50 million people in eight U.S states (Ohio, Michigan, Pennsylvania, New York, Vermont, Massachusetts, Connecticut, New Jersey) and the Canadian province were affected by the cascading outage. It was estimated that roughly 63 Gigawatt (GW) of load was interrupted and a loss resulting to billion of dollars were incurred. Though control was effectively re-established to most within hours, a few zones in the United States did not have control for two days and regions of Ontario experienced turning power outages for up to two weeks [5].

“During this event, over 400 transmission lines and 531 generating units at 261 power plants tripped”. Figure 1 shows the general region affected by this blackout. Upon the North American Electric Reliability Council (NERC) investigation, the system was being worked in agreement with NERC operational guidelines. In any case, there were evident reactive power supply issues in the Indiana and Ohio states before early afternoon on that day. There are various operators responsible for the dependable electric systems in respective regions; the Independent System Operator (IMO) which is operated in Ontario Canada. The New York Independent System Operator (NYISO) which operates the New York System. PJM Interconnection, LLC (PJM) which operates the mid-Atlantic area, including the northern Pennsylvania and northern New Jersey which were affected by the outage. Each act as both the system operator and the reliability coordinator. The Midwest Independent Transmission System Operator (MISO) and PJM run the overall Reliability oversight [5].

The Midwest ISO (MISO) State Estimator (SE) and Real-Time Contingency Analysis (RTCA) software were defective (not working appropriately because of programming issues) for the greater part of the evening. This kept MISO from performing legitimate “early cautioning” evaluations as the situations were developing. At the FirstEnergy (FE) control station, various PC programming failure happened on their Energy Management System (EMS) software beginning at 2:14 p.m. The EMS control focuses on checking the activity and reliability of the FE control region. Due to the failure of the EMS, this kept FE from having enough learning of the situations occurring until roughly 3:45 p.m. This added to lacking situational mindfulness at FE control station [2].

The main major incident was the tripping of FE’s Eastlake Unit 5 generator near Cleveland on the shore of Lake Erie which occurred at 1:31p.m. Eastlake Unit 5 and a few different generators in FE’s Northern Ohio service zone were producing large amounts of reactive power, and the reactive power request from these generators kept on expanding as the day advanced. Such high reactive power stacking of generators can be a worry and may prompt control and safety issues. Because of the high reactive yield, the Eastlake Unit 5 voltage controller tripped to manual operation cause of overexcitation. As the administrators endeavored to re-establish the auto-voltage control, the generator tripped. NERC Steering Group. (2004) [5] reported that if Eastlake 5; which was a critical unit in Cleveland; was still functioning, the loading onto the 345-kV transmission line of Cleveland would have been marginally lower and outages due to contacts of trees might have be delayed. The loss of this critical control center was a key factor in the loss of situational awareness of system conditions by the FE operators [2],[5].

Due to tree contact, three FE’s 345-kV Lines supplying the Cleveland-Akron area and Stuart-Atlanta line in southern Ohio tripped. The FE’s Chamberlin-Harding 345-kV line tripped at 3:05 p.m. and was just loaded to 44 percent of its summer ordinary/crisis rating, although the FE control room did not receive any alert due to an alert processor failure. After the loss of the Chamberlin-Harding line, one might say that the system couldn’t be continued without over-burdening different transmission line facilities over the crisis rating [2],[5].

The Hanna-Juniper 345-kV line was loaded to 88 percent of its summer normal and crisis rating and tripped because of a tree contact at 3:32 p.m., almost 1,200MVA had to be loaded to the remaining two 345-kV lines, Star-South Canton 345kV line tripped multiple times, each time opening and reclosing before finally going out of service while being loaded at 93 percent of its crisis rating (due to the loss of the Chamberlin-Harding and Hanna-Juniper) at 3:41:35 p.m. This falling loss of lines proceeded while little move was being made to shed the load burden or readjust the system amid this period. Because of alarm failure at FE and EMS failure at MISO control station, there was little consciousness of the occasions happening. The loss of these 345-kV lines in the northern Ohio region caused a shift in the power flow to the underlying grid system of the 138-kV lines which led to the loss of the 138-kV transmission lines since they were not designed to carry such load. It was said that about sixteen 138-Kv lines tripped in half an hour leading to the overload of the remaining line [5].

The Sammis-Star 345-kV line; which eventually tripped at 4:05:57 p.m. led to the widespread cascading in Ohio and other states. The Sammis End Zone 3 impedance relay which were operating on the real and reactive current overload and voltage caused the Sammis-Star line to trip, which also caused the tripping of numerous additional lines in Ohio and Michigan by Zone 3 Relays (or Zone 2 Relays set like Zone 3 Relays) which instead of responding to faults responded to the line overloads. The Sammis-Star line trip separated the 345-kV path into northern Ohio from southeast Ohio, setting off another, quick paced sequence of 345-kV transmission line trips in which each line trip was placing a larger load burden on the remaining lines which were still in service. The line tripping advanced west across Ohio, northward into Michigan, thereby severing western and eastern Michigan, lines between PJM and New York tripped, Ontario’s east-west line tripped also tripped [5].

The power outage could have been avoided by load shedding in northeast Ohio before the Sammis-star tripping occurred. At around 4:10 p.m., because of the sequential loss of significant tie-lines in Ohio and Michigan, power started flowing counter-clockwise from Pennsylvania through New York and Ontario. This 3,700 MW turn around power flow was planned for serving load in Michigan and Ohio, which was at this stage separated from every other system apart from Ontario [2],[5].

Finally, Voltage crumbled because of heavy loaded transmissions, and blackout of a few hundred lines and generators resulted, coming full circle in a power outage of the whole district and Eastern Ontario leaving north-western Ontario still connected to Manitoba and Minnesota [2],[5].

Figure 1 Areas affected by the U.S.-Canadian blackout of 14 August 2003. [2]

Figure 2. Location of Three Line Trips [5]

Muir, A., & Lopatto, J. (2004) [4] indicates that the cascading outage was brought about by insufficiencies in explicit practices, electrical gear, and human choices influenced the conditions and results. Based on the final NERC Report [5], a few of the causes were highlighted and discussed:

1)     Inadequate understanding of the system: The report affirms that FE neglected to take fundamental long-term planning into action. They also did not carry out adequate voltage stability analysis of the Ohio control zone and operational voltage criteria.

East Central Area Reliability Coordination Agreement (ECAR) did not carry out adequate analysis of FE’s voltage criteria in so doing allowed FE make use of inadequate system without improvements.

2)     Loss of situation awareness:

The report expresses that the FE control room administrators depended intensely on alarm processors. They had no alarm failure detection system set up, due to not having any occasional diagnostics to report the condition of the alarm processor. They neglected to guarantee security of the framework after critical unanticipated likelihood due to the collapse of the Energy Management System (EMS).

They basically worked under the presumption that the framework was in good condition. Failure of the FE computer support staff in transferring the information of the loss of the alarm functionality to the operators also contributed to the cause. If it had been communicated on time, it would have been possible to detect the Chamberlin-Harding line outage or enable the administrators to be increasingly open to the data being gotten from MISO or any neighboring framework.

3)     Insufficient level of vegetation management:

The report states that by FE failing to practice effective vegetation control in trimming the trees, it allowed the outage of three 345-kV lines (Chamberlin-Harding, Hanna-Juniper, and Star-South Canton lines) and one 138-kV line (Cleveland-Akron line) and the over-loading and tripping of the Sammis-Star line. It was accounted for that all the three lines experienced non-irregular failures because of unchecked tree development. With appropriately quiet climate which existed in Ohio on August 14, the odds of those three lines haphazardly tripping within 30 minutes is very little.

4)     Ineffective diagnostic support by Reliability Coordinators:

Due to the MISO real-time contingency analysis, which works on the condition only if the state estimator solves, did not operate properly in automatic mode again until after the outage.

Without real-time contingency analysis information, the MISO operators were not aware of the FE system issues sufficiently early. With an operational state estimator and real-time contingency analysis, MISO operators would have known of the contingency violation and could have informed FE, thus enabling FE and MISO to take appropriate actions to return the system to within limits. The PJM and MISO reliability coordinators lacked an effective procedure on when and how to coordinate an operating limit violation observed by one of them in the others area

Recommendation/Actions to Avoid Future Blackouts

According to Muir, A., & Lopatto, J. (2004) [4] and supported by NERC Steering Group. (2004) [5] some actions were proposed to prevent another future outage and minimize any future risk that may arise. These actions are listed as follow:

Reliability standards should be made compulsory which should be punishable with a penalty for non-fulfillment.

Proper government branches in both the United States and Canada should also enforce mandatory standard

The trainings for Operators and Reliability Coordinator should be improved. It was found that most of the operators at the control centers had not received the appropriate training and were not honed with the knowledge in answering to emergencies that may arise. The personnel and operators lack the drill and response to real life simulations. All this contributed to the lack of situational awareness and not being able to response rapidly when an intervention was likely still possible.

A standard on vegetation clearances ought to be set up. A quantifiable standard indicates the base clearances between energized high voltage lines and vegetation ought to be created by the arranging board with the Standards Authorization Committee, Appropriate criteria from the National Electrical Safety Code, or other proper code, ought to be adjusted and translated in order to be applied to vegetation.

Regular maintenance, assessment, and testing of power plant and substation equipment should be carried out to guarantee the condition of the gears and to ensure they are always kept in a decent condition and are working under the right design parameters; testing and maintenance will also help to identify inappropriate setting on control and protection systems, in addition to extending equipment life, it also minimizes the risk of failure resulting from the mis-use of the tools [2].

Communications protocols should be fixed, to enable stronger communications during alarms and crisis.

Fortify reactive power and voltage control practices in all NERC areas. Redesign correspondence equipment’s where fitting.

Trainings either long or near terms should be improved

Clear definition of typical, alert and crisis mode as well as obligations and job roles of the coordinators and operators should be established.

Automatic load shedding should be employed


On August 14th, 2003, a blackout affected Northeast America and Canada in which millions of people were affected. The tripping of the Sammis-star 345-kV transmission line prompted the outcome propagating across borders and turning into a cascading blackout which affected eight states and two provinces in Canada. Some factors that contributed greatly to the event were a lack of situational awareness by the control operators and tree maintenance.


 [1] Andersson, G., Donalek, P., Farmer, R., Hatziargyriou, N., Kamwa, I., Kundur, P., … & Schulz, R. (2005). Causes of the 2003 major grid blackouts in North America and Europe, and recommended means to improve system dynamic performance. IEEE transactions on Power Systems, 20(4), 1922-1928.

[2] Pourbeik, P., Kundur, P. S., & Taylor, C. W. (2006). The anatomy of a power grid blackout-Root causes and dynamics of recent major blackouts. IEEE Power and Energy Magazine, 4(5), 22-29.

[3] Vine, D. (2017). Interconnected: Canadian and U.S. Electricity. Center for Climate and Energy Solutions. Retrieved from

 [4] Muir, A., & Lopatto, J. (2004). Final report on the august 14, 2003 blackout in the United states and Canada: Causes and recommendations.

 [5] NERC Steering Group. (2004). Technical analysis of the August 14, 2003, blackout: What happened, why, and what did we learn. Report to the NERC Board of Trustees, 13.

Missing Indegenous Women in Canada


 In the documentary Canada’s Lost Girls, Stacey Dooley investigates the phenomenon of Canada’s indegenous women going missing at oddly high rates. Canada has long had a problem with the disappearance of indigenous women. The women of the First Nation “are four times more likely to go missing or be murdered than other Canadian women” (Paquin, 2015). This clearly represents an inequality, though the question remains as to what exactly causes it, whether it is a cultural issue, an institutional problem, or something else entirely. Some of the most cited possible causes are the cultural issues of domestic violence on the First Nation reservations and Canada’s former system of Residential Schools, in which “150,000 aboriginal children were taken from their families and interned in boarding schools specially designed in the words of the system’s founder Sir John A MacDonald, to ‘take the Indian out of the child’” (Paquin, 2015), and which were only finally closed in 1996.

 The woman behind the film Canada’s Lost Girls, Stacey Dooley, is a television journalist from Britain. Unlike many journalists who come from good backgrounds and received extensive education, Dooley is “a working-class woman who left school with no qualifications” (Hattenstone, 2019). She released this documentary in 2017, through the British Broadcasting Corporation, to look at “Canada’s dark secret where legions of women have gone missing or been murdered without receiving any justice” (Windle, 2017). In this film she explores the issues that led to these disappearances, and the many different opinions held by the residents of the community as to what caused this and what could be done to help.

Diversity and Power Issues

 Canada’s Lost Girls depicts two main types of oppression, that of the indegenous men mistreating indegenous women on the reserves, and that of the Canadian government mistreating the indegenous people as a whole. In the film, Stacey Dooley states that “many reserves across Canada suffer from chronic unemployment, substance abuse and domestic violence” and that “that indigenous women accept that domestic violence is an issue on the reserves”(McConnell, 2017). This presents a clear issue in the power dynamic between men and women on the reserves, as it is simply accepted that domestic violence will continue to be a problem on the First Nation’s reserves. However, some would argue that the issue is more complex than merely indegenous men abusing indegenous women, claiming that the issues stem from the brutal Residential Schools forced onto the indegenous people by the Canadian government throughout the 20th century. According to the film “For over a century, indigenous children were taken away from their families by the government and placed in these church-run boarding houses to learn white Christian values” (McConnell 2017). In the film, Steve Courtoreille, a reserve chief and former student of one of these Residential Schools, recalls that “There was a lot of abuse that went on. Physical, mental, spiritual, emotional. Every day to… to be called a savage” (McConnell, 2017). Steve suggests that the trauma and abuse from these schools, forced onto the indegenous people by the Canadian government, are part of what led to the violence and abuse common on the reserves today.


 In viewing the film, I was intrigued by the history of Canada’s reserve system. I had learned a bit about the American reserves in my previous schooling, but never really thought about how they might have appeared in Canada.

 The earliest form of reserves in Canada came about as early as 1637, when the French missionaries gave plots of land to the Aboriginal people to “encourage Aboriginal peoples to adopt Christianity” (Hanson, n.d.). The modern version of the reserves began with British control and the formation of the Dominion of Canada in 1867. Settlers from Europe were attempting to move into the land previously occupied by the indigenous people, and “Colonial authorities and some Aboriginal people viewed the creation of reserves as a pragmatic solution to land disputes and conflicts between Aboriginal peoples and settlers” (Hanson, n.d.). Not long after the reserves were first established, the Canadian government began making moves to reduce them in size, passing laws “that enabled the government to expropriate parcels of reserve land without the consent of the band and without providing compensation” (Hanson, n.d.). As of 2011, “ Some 360,600 people lived on reserves in Canada, of which 324,780 claimed some form of aboriginal identity” (McCue and Parrott, 2019).

International Policy: Agency and Advocacy

 Many people blame the problems in and around the reserves that lead to these girls disappearing on the old Canadian Residential School system. These residential schools, the first of which was established in 1831, were “ government-sponsored schools run by churches” that aimed “to educate and convert Indigenous youth and to integrate them into Canadian society” (Miller, 2019). The students living in these schools “lived in substandard conditions and endured physical and emotional abuse” (CBC News, 2016). The last of these schools was finally shut down in 1996, meaning many of the former students are still alive today. As compensation for the trauma and abuse inflicted on them, former attendees of the Residential schools “are eligible for $10,000 for the first year or part of a year they attended school, plus $3,000 for each subsequent year” (CBC News, 2016). As part of the attempt to reconcile what the Residential Schools had done, the Canadian government launched The Truth and Reconciliation Commission of Canada, which aimed to “guide Canadians through the difficult discovery of the facts behind the residential school system” as well as “lay the foundation for lasting reconciliation across Canada” (Moran, 2017). They published their final report in June 2015, including 94 recommendations for government policies and projects to help reconcile for what was done. In 2015, the Canadian government “began working towards one of the recommendations in December 2015 — a national inquiry into missing and murdered Indigenous women and girls” (Moran, 2017).

Personal/Professional Growth

 As an American I tend to think of issues such as racism and systemic oppression purely from an American perspective, and sometimes even as a uniquely American problem. This film helped open my eyes to how this problem can be just as prevalent anywhere else, such as Canada. Some of the things that were said by Donna the cab driver, who said that “They have no self-worth” (McConnell, 2017) or the man who called in to the radio show and said he thought the Residential Schools were necessary, were shocking to me. The realization that these are international problems was one of the major impacts of this documentary on me. There is still a lot that needs to be done worldwide to both reconcile these historical atrocities and to create a better world for us to live in now.


A history of residential schools in Canada | CBC News. (2016, March 21). Retrieved from

David McConnell (Director), Stacey Dooley (Presenter), David McConnell (Producer), British Broadcasting Corporation (Producer),  (2017). Canada’s Lost Girls. InStacey Dooley Investigates. Season 8, Episode 2. London, England: BBC Worldwide. [Streaming Video]. Retrieved from database

Hanson, E. (n.d.). Reserves. Retrieved from

Hattenstone, S. (2019, July 29). Stacey Dooley: ‘Some people don’t understand why I’m on TV. But I deserve to be there’. Retrieved from

McCue, H., & Parrott, Z. (2019, January 3). Canadian aboriginal reserves. Retrieved from

Miller, J.R.. “Residential Schools in Canada”.  The Canadian Encyclopedia, 10 October 2019, Historica Canada. Accessed 23 October 2019.

Moran, Ry. “Truth and Reconciliation Commission”.  The Canadian Encyclopedia, 06 June 2019, Historica Canada. Accessed 23 October 2019.

Paquin, M. I. (2015, June 25). Unsolved murders of indigenous women reflect Canada’s history of silence. Retrieved from

Windle, L. (2018, September 4). Stacey Dooley investigates 1,200 missing or MURDERED indigenous Canadian women. Retrieved from


Comparing Housing Investment Options in Canada

Introduction of today’s current economic climate of Canada
On Jan. 21, 2015, the Canadian Central bank, Bank of Canada, announced that they reduced the benchmark interest rate from 1% to 0.75%, this was the first time Bank of Canada lower the interest rate in the previous four years (Bank of Canada, 2015). With the global economic downturn, Canada is also suffering trouble with recession. Reducing the benchmark interest rate generally was treated as an important tool to hedge the recession. On the other hand, with the price of oil continuously runs in a low-price level, all the Canadian petroleum companies and the stock exchange market shares had been badly affected, as well as the Canadian currency rate.

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From Bank of Canada report, (Bank of Canada, 2014) Inflation has remained close to the 2% target in recent quarters. Core inflation has been temporarily boosted by sector-specific factors and the pass-through effects of the lower Canadian dollar, which are offsetting disinflationary pressures from slack in the economy and competition in the retail sector. Total CPI inflation is starting to reflect the fall in oil prices. The globally large decline in oil prices will affect significantly on the Canadian economy. While real GDP growth has been solid and more broadly based in recent quarters, near-term growth is expected to slow as investment in the energy sector responds rapidly to lower oil prices. In addition, trade as Canada’s weakness will have an adverse impact on income and wealth, with implications for consumption and public finances.
This information indicates that people are facing dual pressure of managing their wealth, one is the recession decreases their ability in earning more money in the coming near future, the other one is with such inflation rate, if there is not a good choice of investment, people will absolutely lose their wealth they currently possess.
Major housing investments comparison
When it comes with housing investment, it can be easily split into commercial purpose and residential purpose housing investment.
What is residential purpose housing investment? Residential purpose is an investment on the real estate for lending its right of use to others, and the main purpose of the tenant will be residence not for commercial or business use, while the commercial purpose housing investment is just the opposite.
Based on their basic nature, these can make them a big difference. Take the housing investment in Ontario for example, Law of Ontario would be much more kind to tenants, it has an established system to protect the tenants’ right rather than the landlord, however, the good news is comparing with other province, the investment can be more stable. If an investor decides to invest a commercial real estate, the following leasing activity will be subject to contract law. Comparing with residential real estate it is quite simple. The best thing is there is no limit to the rent increase in commercial leasing. The landlord also do not worry about the payment according to the Commercial Tenancies Act. (Commercial Tenancies Act, 1990). It is totally different that commercial leasing is based on the contract law, which apparently gives the landlord more protection when they are facing commercial dispute.
Generally, the more attractive the market looks like, the more risky it will be, today in Canada, the most attractive real estate market are in the two biggest cities, Vancouver and Toronto, people always say that there must be some economic bubble exist in these two markets, nobody can predict the accurate the date when the foam breakdown, but the investor can avoid investing the above market unless he or she deeply understand the operationmechanism. Generally, in this kind of market, commercial property will be the best choice for investing, it will generate the maximum profit because most substantial market players want to move in the central of an active market, this can optimalutilization of the enterprise not only in the short term but also in a long term prospect. But everything has two sides, the problem is once there is a financial crisis, investor bears the brunt of the problem due to crisis will be the cost reduction, only the top level enterprises have the capability to survive. Most players will escape the market or even fall in bankrupt.
Another difference between residential property and commercial property is the later one need a higher down payment when you plan to get a mortgage from a bank, and investor also has to assume a higher mortgage rate comparing with the home mortgage, it means that the entry and financing is not easy for investors in investing commercial property.
Today’s best housing investment
According to the above analysis, in today’s economic climate, the best choice of housing investment should be residential purpose investment, during the recession, a lot of small and medium enterprise will close, even some big enterprise such as Target and Tiger Direct, some business has to shut down due to price is less than the average variable cost (Exploring Economics, Nelson), while others just want to reduce their cost, therefore, based on this circumstances, investing the commercial real estate is not a good choice, on the contrary, investing the residential purpose real estate has several advantages as follows,

New immigrants are steadily increasing, no matter at recovery or recession, Canada is one of the best countries in attracting immigrants all around the world. New immigrants and international students comprise a big increasing need of residential real estate. The initial problem they have to face when they come to Canada is living, therefore, as long as the immigration is net inflow, the demand will be never end up.
People living in Canada are not only facing the economic recession, but also experiencing the currencydevaluation, the exchange rate of Canadian dollar to US dollar was 1.2515:1 on Mar. 30, 2015 (Federal Reserve, 2015), real estate in some sense is a good investment for hedging the system risk during economic upheaval.
Residential housing investment can give you various return, not only rental income, but also capital gain, although the price on some areas of Canadian real estates are deemed as housing bubble, most real estates’ price in Canada remain acceptable. Investors should avoid the overvalued areas such as Vancouver, BC or Toronto. Focusing on the areas near above mentioned areas is a good choice. In a long term run, new immigrants would like to go outside big cities once they adapt the life in this new country.
People usually are familiar with this kind of real estate, most people have experience in renting or living a house or a condo, people are well acquainted with the processes involved in this business. Nearly all of them have fundamental knowledge about the usual building systems of a house. However, commercial property will be more complicated comparing with residential property, people always feel baffled when they are facing a lot professional accreditation unless he or she has related career background.
Other than commercial housing investment, residential housing investment is a low risk investment, this is the basic human need. Compared with commercial properties, residential properties has a much lower vacancy risk, especially in the recession. It is totally different with the residential purpose use housing, investors need to consider much more for their potential clients, they have to evaluate the feasibility of the business at a location, they have to know more about the people living or working around, whether it is possible for this business serving this community, is it the potential market for this business. Moreover, to deeply investigate the feasibility, the investor may take more survey or investigation on his or her investment, other than residential housing, for different business or enterprise, the feasibility may vary significantly, the investor can never find the investment which will fit for every business. Therefore, they have to face unpredictable vacancy problem when the contract goes end, or even the first time leasing. But for residential properties, even if it is not in a good location or good community, maybe it is far from hospital, shopping mall, or highway, it can be rent out easily as long as the investor decreases the price, location is not a big problem.

There’s one risk the investor has to be clear that some investors are engaged in the business of purchasing properties that are in foreclosure. A property is considered in foreclosure when the homeowner has not made a mortgage payment for at least 90 days. These properties can be purchased before the foreclosure auction (pre-foreclosure) or at the foreclosure auction which is a public sale. If no one purchases the property at the foreclosure auction then the property will be returned to the lender that owns the mortgage on the property. ( Levinrad, 2010)
In conclusion, today all the world are suffering in the global recession, it is difficult for people to find an ideal investment in order to avoid the loss of their wealth, in most aspects, housing investment is a good choice to consider, because real estate has its natural advantages such as scarcity, durability and stability, it is good investment especially during the recession. In the housing investment industry, residential housing investment is a good choice for most people, it does not need a high level entry, and nearly everyone knows about it, residential housing investment can provide stable and long term income as return to the investor, although in some part of Canada, the law looks pretty strict to the landlord. In fact, to protect the right of the tenants can be treated as a long term protection for the investor, because they protect the demand of the market, it gives the confident for the buyers. This will lead to a healthy long term market.
Works Cited
Bank of Canada. (2015, January 21). Press Release- Bank of Canada lowers overnight rate target to 3/4 per cent. Retrieved March 30, 2015, from website of Bank of Canada:
Bank of Canada. (2015, February 13). Annual Report 2014, Retrieved March 30, 2015, from website of Bank of Canada:
Commercial Tenancies Act. (1990). E-laws-Service Ontario. Retrieved March 30, 2015, from:
Federal Reserve. (2015, March 30). Current Release. Retrieved March 30, 2015, from:
Bank of Canada. (2015, January). Monetary Policy Report 2015. Retrieved March 30, 2015, from:
Levinrad, Lex (2010-12-17). Investing in Foreclosures for Beginners. Distressed Real Estate Institute. Retrieved 2012-12-31.