It was almost a Kingdom but at the last minute before the BNA act was introduced it was changed to Dominion in the hope that it would not upset the Americans.
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Canada officially became a country on July 1, 1867. The first provinces were Quebec, Ontario, Nova Scotia, and New Brunswick. (The term "Dominion" is simply a historical reference to Section 3 of the British North America Act: "one dominion under the name of Canada". Canada was never known officially as "The Dominion of Canada". It found its way into popular venues such as paper currency and school maps. However, on Canadian bills it was meant as "The Dominion Under Canada" and on school maps as "The Queen's Dominion of Canada".)
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Canada was formed in 1867. Canada was formed partly because of economic needs. Provinces could easily trade with each other giving people more places to sell their products. As a country, Canadians could also more easily defend themselves against threats from other countries. In the 1860's, people in Canada were concerned about attack from the United States, especially since Canada was a British colony at that time. The Americans were not on good terms with the British.
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Fear of American invasion and domination.