International business news - Article Example

INTERNATIONAL BUSINESS NEWS The international business news regards the impact of high global debt on Canada. In this article, the increasing debt rates in the leading economies is said to have impact on the economic performance of Canada. However, Canada has a stable fiscal policy; its economic performance is not in isolation to those of other economies. The article therefore explains how the rising debt in the US leads to slow economic growth, which will affect the trade between US and Canada.

Unstable fiscal performance in US and Europe influence the global economy just like the economic recession because of global financial interaction. Low economic growth in US will affect interest rates and exports earnings (CBC 2012). On the other hand, the problem of the emerging markets like china is inflation. Canada should therefore review its policies and increase its trading with the emerging markets to record stable performance and fiscal performance. The article also further explains the impact of fiscal slippage on interests rates.

Canada must thus ensure that it shields its financial market from the risk of recording increasing interest rates as this would reduce rate of investment and reduce economic performance. The lack of fiscal stability in the developed nations would affect other economies. The final section of the article contains the how Canada should enter into trading partnership with the growing economies. Canada’s share of exports to these emerging markets has reduced by 50% and this calls for urgent need to increase its exports to exploit the growing demand (CBC 2012).

The article recommends that Canada require concerted efforts to develop trade with the emerging economies to maintain its fiscal stability and earnings from efforts. Canada business should also improve on the competitiveness; look for new suppliers in order to maintain stability in the volatile economy. In summary, the article raises concern over the increasing fiscal instability of the leading economies on Canada economic stability and recommends increased trading with the emerging markets.ReferenceHigh global debt will impact Canada: Carney - Business - CBC News. (n.d.). CBC.

ca - Canadian News Sports Entertainment Kids Docs Radio TV. Retrieved March 21, 2012, from http://www.cbc.ca/news/business/story/2011/05/16/pol-carney-speech.html