"The Suez and the Panama canals are two vital man-made navigation canals which serve as gateways of commerce for both the eastern and western worlds." In the light of this statement explain the economic significance of these two canals.

Explanation

Suez Canal:
(i) It gives Europe a new gateway to the Indian ocean.
(ii) It reduces direct sea route distance between Liverpool and Colombo.
(iii) Before the construction of this canal, Cape of Good Hope route was followed which was very long.
(iv) It is sea level canal, makes journey comfortable.
(v) Suez canal is very suitable for commerce.
(vi) The economy of Egypt has been changing very fast mainly the income recover from trolls.
Panama Canal:
(i) It shortens the distance between New York and San Francisco by 13000 km by sea.
(ii) Likewise, the distance between Western Europe and West Coast of U.S.A. is shortened
(iii) It also shortens the distances between East and North-eastern and Central U.S.A. and East and South East Asia.
(iv) It has a six lock system and ships cross the different levels. It makes journey hardsome even that it save time and money.
(v) It has provided great boost to the economy of U.S.A and Latin America also.