GLOBALIZATION & TRADE

Interdependence of Nations Major Topics: 1.Trade 2.Canada’s trading partners 3.International Trade Organizations 4.Fair Trade 5.Globalization 6.Child Labour

Trade Terminology Trade – the exchange/trade of goods or services between countries. Imports – goods or services brought into a country from another country. Exports – goods or services sent out from a country to another country. Balance of trade – the difference between the value of the goods and services that a country exports and the value of the goods and services that it imports

Trade surplus – when a country’s exports exceed/more than its imports. Positive balance: export/sell more than import/buy Canada has an trade surplus with USA of about $49,657,000,000 (in 2014) Trade deficit – when a country’s imports exceed its exports. Negative balance: import/buy more than export/sell Canada has an trade deficit with China of about $15,000,000,000 (in 2014) Tariff – tax charged on goods imported to Canada (to protect Canadian industries) Commodities – goods that are traded. (eg. Wheat, wood, paper, cars, oil…)

Statistics for 2014 (in millions, CAD)

International Trade Organizations OrganizationDescription World Trade OrganizationEstablished in 1995 Enforces international rules for trade. North American Free Trade Agreement Established 1994 free trade agreement between Canada, USA, Mexico. No extra fees/taxes on imported goods between these countries (for products made in these 3 countries)

Fair Trade Kenyan coffee, Indian textiles, Mexican ceramics, Ghanaian cocao, Sri Lankan tea… (type of country/level of development?) …but do the workers get a fair price for their goods, and what are their working conditions like?

“Fair Trade: Improving Lives” (2:04 min) “Tipping the Balance: What is Fair Trade?” (5 min)

Fair Trade For most workers, wages are low, there is no job security, and working conditions are often unhealthy and unsafe. Fair trade means that the goods you are buying have been produced in a fair and humane way. –fair wage –Humane work conditions

Fair Trade What is your role? –Churches, communities, school, unions, businesses and consumer groups are pushing to move Fair Trade products into mainstream grocery stores –The demand must increase, so more workers will benefit –Demand products with superior quality –Become a player in the solution to global trade inequalities

Globalization Globalization is how countries are coming together as one big global economy, making it easier to buy and sell across countries

Globalization: NEGATIVE IMPACTS

Rich get richer, poor gets poorer

Outsourcing jobs

neglect of human rights

destruction of the environment

Cultural destruction

Globalization: POSITIVE IMPACTS

Cheaper goods

Increased understanding of different cultures (multiculturalism)

Improved living conditions

More jobs (mostly for developing countries) (Photo: visually challenged workers in India)

Globalization Video:

Globalization: Transnational Corporations A transnational corporation (TNC) is a company that exists in multiple nations Headquarters are in one country, but branch plants are in several other countries. Top TNC = General Electric (GE) (assets worth over $500 billion)

Child Labour What is Child Labour? –Children under the age of 12 that are working Worst forms of child labour –enslaved, prostituted, trafficked, exposed to dangerous work. Can children work? –“ does it negatively affect their health and education??”

ONTARIO youth labour law: (No working while school hours for those under the age of 16) 14: Minimum age for industrial establishments 16: Minimum age for Construction, Logging Operations, Mining Plant or Surface Mine 18: Minimum age for Underground Mines and Window Cleaning (Unrestricted)