Good evening, I am writing a paper about The Impact of International Trade on Canada.

Can someone please review and provide feedback regarding the Economic theory?

Economic Theory

The best theory to define how Canada benefits from trade is the Mercantilism theory. The theory advocates for international trade regulation by the government as a way of wealth generation and strengthening of national economic power. The Canadian merchants and the government work hand in hand in creating trade surplus and reducing trade deficits within the economy. The surplus is used in funding national, corporate, and military growth.

The mercantilism economic theory is economic nationalism, advocates for trade policies that protect local industries. The government finds away and establishes criteria to strengthen private investors who own numerous factors of production. The factors are labor, natural resources, capital goods, and entrepreneurship. The Canadian government has imposed tariffs on imports, does not allow the emigration of skilled labor, tools, and capital. The businesses, in return, funnel the benefits from foreign expansion back to Canadian governments. The government utilizes taxes to increase political power and national growth.