1. Canada’s Global Connections Where does the responsibility lie?
. . .with the GOVERNMENT?
CORPORATIONS?
CONSUMERS?
Trade
Sweatshops
Clothing Industry

2. Canada and
International Trade

3. Canada and its trade economy
Canada is……..
one of the world's wealthiest nations with a high per capita income,
important global producer of natural resources (which is rare for a developed country)
Depends upon buying goods from around the world in order to support its manufacturing, services and retail industries.

4. Canada and International Trade
Exports
Goods or services are provided to consumers in other countries by Canadian producers.
Imports
The buying of goods or services from other countries and bringing them into Canada.

5. Canada and International Trade
Exports
Exporter of energy (oil, gas and hydroelectricity)
One of the most important suppliers of wheat and other grains to the world
World's largest producer of zinc and uranium and a world leader in many other mineral resources such as gold, nickel, aluminum, and lead

6. Canada and International Trade
Imports
Import machinery and other equipment (ex. computers)
Miscellaneous consumer goods (ex. shoes)
Agricultural and fishing products (ex. oranges)
Automobile products

7. Value of Export Goods from Canada 2004-2005
$ millions
Total Exports
429,120.90
453,060.10
United States1
350,751.00
368,577.30
Japan
9,950.60
10,470.50
United Kingdom
9,425.20
9,683.20
Other European Economic Community countries
17,351.90
19,206.80
Other OECD
14,399.10
15,245.50
Other countries
27,243.10
29,876.90

8. Value of Import Goods to Canada 2004-2005
$ millions
Imports
363,638.50
388,210.30
United States
250,515.60
259,783.90
Japan
10,096.90
11,214.30
United Kingdom
9,466.30
9,061.60
Other European Economic Community countries
27,012.30
29,285.60
Other OECD2
22,254.10
24,308.80
Other countries3
44,293.20
54,556.10

9. Trade Balance $ Value $ Value of Imports of Exports
Positive balance of trade (trade surplus):
exporting more than imports
Negative balance of trade (trade deficit):
importing more than exports

10. Trade balance between Canada and other countries
2004
2005
Balance
65,482.40
64,849.80
United States
100,235.40
108,793.40
Japan
-146.3
-743.8
United Kingdom
-41.1
621.6
Other European Economic Community countries
-9,660.40
-10,078.80
Other OECD
-7,855.00
-9,063.30
Other countries
-17,050.10
-24,679.20

11. Factors than can affect the trade balance between Canada and other countries
Prices of goods manufactured in Canada
Value of the Canadian Dollar (Exchange rates)
Trade agreements or barriers
Other tax, tariff and trade measures
Canada’s economy or countries abroad.

12. Tariffs Taxes imposed by a government on imports.
To make imported goods more expensive so that consumers will be more likely to buy products made locally.
Example: Tariffs on automobiles sometimes discourage people from buying foreign made cars (ex. Volvo) and people buy Canadian made cars instead (Toyota Corolla)

13. Trade agreements These agreements between countries are used to:
remove or reduce tariffs
establish trade rules
have a system to negotiate trading problems

14. Do we (Canada) have a positive trading balance with the world?
Answer the following questions, summarizing what you’ve learned today, in the space provided
Do we (Canada) have a positive trading balance with the world?
Is it a concern to be so heavily dependent on natural resources?