Canada is a federal parliamentary democracy and constitutional monarchy, with the British monarch as head of state. Its advanced economy is built on abundant natural resources, well-developed trade networks (especially with the USA), and strong service and manufacturing sectors. The country's economic strengths include natural resources (oil, timber, minerals), advanced manufacturing, agriculture, and services including banking and technology. Known for its stable political system and high living standards, Canada combines free-market principles with significant social programs, though its economy is heavily influenced by its close integration with the US market.