Advantages and Disadvantages International Trade Advantages and Disadvantages

Reasons for International Trade Sell something we don’t need or have made for trade and buy something that we need Many benefits Trade creates jobs, attracts investment, attracts new technology and materials, and offers Canadian a wider choice in products and services

Reasons for International Trade Range of choice provides more competition in the marketplace Result – competitive pricing, technological advances, improved services – including the education and training of Canadian employees

Advantages Meeting our Needs Allows Canadians to have access to many goods that we are unable to produce ourselves (pineapple, motor vehicles….) Trading Partners get something they need by trading something that they do not need

Advantages Job Creation Foreign businesses buy Canadian products and services, which leads to more jobs for Canadians Exports are critical to the Canadian economy One out of three Canadian jobs depends on exports More than 40% of everything Canada produces is exported (50% for Ontario) Every $1 billion in exports means over 6000 jobs for Canadian

Advantages Attracting Investment Investment follows trade This investment creates other jobs in construction, sales and office management

Advantages New Technology and Material Development of new technology promotes competitiveness and profitability

Advantages Diverse Products and Services Foreign trade opens up the world as a market, delivering a wide range of foods, high fashions, and new inventions to the Canadian market Foreign travel, banking, consultation and other services are also available to the Canadian consumer Businesses must consider that their competition for similar products and services is no longer just in the same city but anywhere in the world.

Disadvantages Cultural Identity Issues Culture is “exported” with the products sold internationally Symbols of American culture include products like Coca-Cola, McDonald’s and Nike.

Disadvantages Social Welfare Issues Maintaining safety standards, minimum wages, worker’s compensation, and health benefits cost Canadian businesses and Canadian taxpayers a great deal of money Countries that do not maintain these high standards can make products less expensively

Disadvantages Environmental Issues Canada has highly regulated environmental protection laws Many businesses may chose to do business elsewhere if the pollution controls, recycling laws and emission controls are not too stringent or expensive for them to meet

Disadvantages Political Issues Ware and strife often occur because of natural resources. Thousands of people have been killed for control of oil, others for control of the diamond trade or even farmland.