According to Michael Porter, a Harvard University Expert on International

question 160

Short Answer

According to Michael Porter, a Harvard University expert on international competitiveness, Canada's competitiveness is a concern because
Canada's productivity is the lowest in the world.
we have been living off our rich diet of natural resources.
Canadian companies are only competitive due to the lower value of the Canadian dollar.
the quality of Canadian manufactured goods is low.
we don't take advantage of the intellectual ability of our people.

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Definitions:

Default Risk Premium

The additional yield that investors require to invest in bonds that have a risk of default, compared to risk-free bonds.

Liquidity Risk Premium

The extra yield or return that investors demand for holding a security that may not be easily sold or converted into cash without a significant loss in value.

Maturity Risk Premium

The additional yield demanded by investors as compensation for the increased risk of holding a bond as it approaches its maturity date.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, the purchasing power of currency is falling.