1. Advantages and Disadvantages
International Trade
Advantages and Disadvantages

2. 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

3. 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

4. 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

5. 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

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

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

8. 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.

9. 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.

10. 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

11. 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

12. 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.