canada’s global connection Unit 5

Chapter 32: Canada and the world community

Grouping countries These are the six criteria that are used to evaluate or rank countries: Life Expectancy  how long people can hope or expect to live  the higher the life expectancy the richer the country Wealth  GDP = Gross Domestic Product  GDP is used to measure the country’s wealth  GDP is the total value of goods and services per person in a nation’s economy

Population Growth  the typical rate at which the country’s population grows  Developed Countries = pensions = no need for large family to support you in old age  Developing Countries = no pension = need for large family to support you in old age Food Supply  the amount of food energy needed to survive  varies from country to country  depends on: average body size (lbs) age of people (yrs) climate (temperature) warm climate = less food needed & less energy needed to stay warm cold/harsh climate = more food needed & more energy needed to stay warm

Education Level  very important to speed-up development of country  measured by “literacy rate” ‣ the % of population that can read and write  the more edcuation a country has, the better/easier you can spread information throughout the population ‣ ex. spreading the importance of... a) birth control 1. better farming techniques Health Care  healthcare is very important to a country’s survival  measured by how many people each doctor must take care of or look after  i.e. doctor patient ratios between developing and developed countries

1. Developed Countries - these countries are at the highest social and economic level  Economies are based on the service sector  Have well-developed services (education, health care, banking)  Primary industries are the least important industry  High standard of living  Use most of the world’s resources  Produce the most pollution The three levels of development

1. Developing Countries - these countries are those with the lowest levels of economic and social growth. Most of the countries of Africa and Asia are in this group  Economies are dominated by primary industries (agriculture)  Usually have raw materials that is used in the manufacturing sector  Service sector is poorly developed  Citizens earn little money therefore they do not pay taxes... as a result there is no money for education, health care, or economic development  Usually rely on foreign aid to pay for such things

1. Newly Industrialized Countries  Are countries that are going through the process of becomeing developed  This process involves a complete change int he economy and lifestyles of the country  Examples: “Four Dragons” - Twaiwan, S. Korea, Hong Kong, Singapore  All these countries have moved from the developing stage to the developed stage

Chapter 33: Canada’s International Relationships

Canada’s diplomatic links The United Nations Most important international organization devoted to solving the world’s problems Formed at the end of World War II Includes more than 180 countries Provides a forum for international discussion (countries can talk to each other)

Headquarters are located in New York City (U.S.A.) UN acts as a world peacekeeper Many countries participate in peace keeping activities - ex. Cyprus - peacekeepers have been there for over 30 years

Program/ OrganizationPurpose - United Nations International Children’s Fund (UNICEF) - to provide emergency releif aid and the role of children - Food and Agriculture Organization (FAO) - to raise levels of nutrition, improve production, and distribute food - The World Health Organization (WHO) - to direct and coordinate activities, promote research, and supply drugs and equipment where needed

Foreign Aid Respond to the needs of developing countries Canada contributes money, materials, knowledge and skills to countries in need

How Does Canada Contribute? (a) donations to aid organization (ex. Red Cross) (a) government aid (b) (ex. foreign fundaid) (c) volunteering (ex. Peace Corp)

What is Canada trying to improve in these countries? incomes, food supply, literacy levels, health care, life expectancy

Canada’s Foreign Aid managed by CIDA (Canadian International Development Agency) Follows 4 basic principles: 1. deal with poverty first 2. help people to help themselves 3. promote development 4. build partnerships

International relationships are becoming more and more important In the past there were....Now there are... CORPORATE CITIZENS Multinational Corporations (MNC’s) companies that operate primarily in one (1) country or region companies that operate across the entire world Example: McDonald’s In the past... operated primarily in the United States Presently... operate around the world

Canada belongs to a wide variety of international organizations ‣ Purpose: make the world a safer, happier, and healthier place to live  ex. United Nations peacekeepers Canada contacts the rest of the world through:  television, books, movies, magazines, internet/ , family connections canada’s international relationships

Fact: Canada’s International Connections have been growing and continue ti grow every year Reasons For Canada’s International Connections:  more people are traveling to more places. Individuals are more likely to visit foreign countries than any previous generation.  Communication by phone and the internet allows a level of contact in the world that is faster, easier, and cheaper than ever before. The result is then creation of a more closely-connected global village.  International trade grows by leaps and bounds every year and the economies of the world’s largest countries are becoming more and more closely linked.  While there is still much delivery throughout the world, increasingly, the world shares a common culture.

Chapter 34: Foreign trade: The foundation of Canada's economy

Trading:  the world thrives and survives on trading  no country in the world can survive without trading  Canada relies heavily on trading to globally to survive

Trading Terminology Imports goods that are brought into a country Exports goods that are sent out of a country Trade Surplus EXPORTS > IMPORTS more goods are being sent out of a country then being brought in Trade Deficit EXPORT < IMPORTS more gods are being brought into a country then being sent out

Net Imports: when a country imports more than it exports of the same product  Example: Canada - Hockey Pucks Imports = 5 million Exports = 3 million Therefore: net import of 2 million

Net Exports: when a country exports more than it imports of the same product  Example: Canada - Hockey Sticks Imports = 3 million Exports = 7 million Therefore: net export of 4 million

Canada has 4 main types of imported products: 1.High Tech Products  computers, communication equipment, photography equipment, televisions, video games, audio devices, etc.  these products mainly come from the United States, Japan, Germany, Taiwan, South Korea Canada’s Imports

2. Motor Vehicle Parts  parts that are used to assemble cars  Ford, Honda, Toyota, General Motors are assembled here with imported parts Canada’s Imports

3. Goods From Warmer Climates  citrus fruits (oranges, grapefruit, etc.), sugar, coffee, tea, spices, some woods (teak, mahogany, etc.), some fresh vegetables

4. Low Cost Goods  goods that are produced in other countries because it is cheaper to do so because of the cheap labour that is available in other countries  examples: clothing, footwear, plastics, books

Why must Canada Export? To pay for imports, to keep the economy healthy, to lower the prices of Canadian made goods for Canadians Canada has 3 main types of exported products (1) Products Based on Natural Resources  selling of products that are part of Canada’s natural element  Canada has a large number of resources and a small number in population Canada’s exports ‣ Products that are exported come from: forests (wood), fields (wheat), mines (iron ore), waters (fish, electricity)

(1) Motor Vehicles  Canada’s largest export product  results from trade agreements with the United States and Mexico  trade agreements gave opportunity for Canada to trade without tariffs (taxes) ‣ “Auto Pact” - signed in trade of auto’s without tariffs

(1) Specialized Manufactured Goods  Canada emerged as a world leader in small and medium built aircraft  Canada needed these aircraft because of its enormous size and vastness of the land ‣ Example of Aircraft Built: DASH 8, CHALLENGER REGIONAL JET

ISSUESUPPORTOPPOSITION EFFICIENCY Trariffs protect inefficient producers which pushes prices up for consumers Agreement helps Canadian resources exporters, but hurts manufacturers that produce for Canada only JOBS Low-skill jobs will be replaced with high-skill jobs that pay better Jobs will move to lower wage cost areas of Mexico and S. United States COMPETITIVENESS Canada can complete with the US and Mexico because of high productivity, good transportation and cheap power Canada will have to cut wages and benefits to be able to compete with American and especially Mexican companies OPPORTUNITIES Canadian companies can bid on American and Mexican government contracts American companies can bid on Canadian government contracts ENVIRONMENTAL IMPROVEMENT NA environmental quality will improve since Mexico is required to meet American/Canadian standards Environmental quality is likely to decline since standards in Canada will have to be relaxed to allow Canadian companies to be competitive NAFTA: FREE TRADE