Dutch Disease is a phenomenon that occurs when a country experiences a resource boom (Bimenyimana & Vallée, 2011). This could be due to a major discovery or a significant increase in the price of the resource (Bimenyimana & Vallée, 2011). Therefore, there is a high demand for that country's currency, which makes it appreciate (Bimenyimana & Vallée, 2011). Subsequently, the manufacturing sector suffers a decline, both in terms of production and employment, because local producers find it difficult to compete domestically and abroad (Bimenyimana & Vallée, 2011). It becomes a “disease” when the manufacturing sector is unable to recover after the end of the resource boom (Beine, Bos, & Coulombe, 2012). This phenomenon was first observed in the Netherlands in the 1960s (Bimenyimana & Vallée, 2011). The majority of Canada's population is centralized in Ontario and Quebec (Brander, 2014). Much of the economic activity in these two provinces is linked to the manufacturing sector (Brander, 2014). Meanwhile, western provinces are more closely linked to resource-based industries, such as mining, energy, and forestry (Brander, 2014). Canada's provinces manage and tax their natural resources (Boadway, Coulombe, & Tremblay, 2013). Therefore, Canada's geography, combined with natural resource jurisdiction, poses a problem when attempting to combat Dutch disease (Bimenyimana & Vallée, 2011). The resources boom is affecting two different parts of Canada (Bimenyimana & Vallée, 2011). Western provinces, particularly Alberta, are benefiting from the resource boom in the oil and gas sector (Bimenyimana & Vallée, 2011). Meanwhile, provinces with large manufacturing sectors, particularly Ontario and Quebec...... middle of paper ......neeco.2012.05.002.Bimenyimana, C., & Vallée, L. (2011). Treating Dutch disease in Canada. Policy Options, 75-79. Retrieved from http://archive.irpp.org/po/archive/nov11/bimenyimana.pdfBoadway, R., Coulombe, S., & Tremblay, JF. (2013). Canadian policy prescriptions for Dutch disease. IRPP Insight, 3, 1-26. Retrieved from http://www.irpp.org/assets/research/competitiveness/policy-prescriptions-dutch-disease/Boadway-no3.pdfBrander, J. (2014). Government policy toward business (5th ed.). Mississauga, ON: Wiley.Government of Alberta. (n.d.). Heritage Fund - Frequently asked questions. Retrieved from http://www.finance.alberta.ca/business/ahstf/faqs.htmlGovernment of Alberta. (n.d.). Improving the quality of life of Albertans. Retrieved from http://www.finance.alberta.ca/business/ahstf/Hill, C., & McKaig, T. (2012). Global business today (3rd ed.). McGraw-Hill Ryerson.