1. Canada’s Economy

2. 3 Economic Questions… What to Produce? How to produce it?
Businesses decide and government approves/denies it
How to produce it?
Businesses decide & government regulates procedures
For whom to produce?
Businesses decide based on supply & demand (price)
Which economic system does Canada have?…

3. Canada’s Economic System
Canada has a Mixed economic system
It’s actually pretty close to a Market economy; however, there is some government regulation among industries
Canada is economically strong

4. Canada’s Physical Trade Barriers
Northern Canada: glaciers & ice block trade by land and water.
Western Canada: Rocky Mountains also block trade & travel.

5. North American Free Trade Agreement (NAFTA)
1993—Canada, USA, & Mexico signed a treaty to eliminate trade barriers between the countries
They now have free trade, which allows goods to flow freely among the countries
Some Canadians don’t agree with NAFTA:
Fear that their economy is too dependent on the US
Worry that American economy will dominate the partnership

6. Canada’s Natural Resources
What’s available?
Iron ore, nickel, zinc, copper, gold, lead, molybdenum, potash, diamonds, silver, fish, timber, wildlife, coal, petroleum, natural gas, hydroelectric power

7. Canada’s Land Use
What percentage of the land is arable (capable of being farmed)?
5% (only in Southern Canada; Northern Canada’s terrain is permafrost!)
What are the major agricultural products?
Wheat, barley, oilseed, tobacco, fruits, vegetables, dairy products, forest products, fish

8. Canada’s Industries What’s being produced in the factories?
Transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas

9. Canada’s Exports Chief exports: Exports total (2011): $462.4 billion
Motor vehicles & parts, industrial machinery, aircrafts, telecommunications equipment, chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum
Exports total (2011): $462.4 billion
Top exporting partners: US (73.7%), UK (4.2%), China (2.1%)

10. Canada’s Imports Chief imports: Imports total (2011): $401 billion
Machinery & equipment, motor vehicles & parts, crude oil, chemicals, electricity consumer goods
Imports total (2011): $401 billion
Top importing partners: US (49.5%), China (10.8%), Mexico (5.5%)

11. Canada’s Literacy Rate
What percentage of people over the age of 15 can read and write?
99%
How long are students required to stay in school?
17 years

12. Canada’s Unemployment Rate
What percentage of people do not have jobs?
7.5% (2011)
What percentage of people live in poverty?
9.4% (2011)

13. Canada’s GDP $1.4 trillion (2011)
GDP Per Capita--What is the value of goods and services produced per person?
$41,100 (2011)

14. Canada’s Economic Problems
Unemployment & poverty
Over depletion of natural resources
Acid rain from factories near Great Lakes region
Improving public services (which forces the country to raise taxes)