1. Canada’s Economy

2. 3 Economic Questions… What to Produce? –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 –It does have Free Enterprise… Canada is economically strong!

4. Canada’s Foreign Exchange Rate The price of 1 country’s currency compared to another… –1 US dollar = 1.25 Canadian dollars –1 US dollar =.77 EU euros –1 Canadian dollar =.61 EU euros What does this mean? –The US economy is stronger than Canada’s; however, the economy of the European Union is stronger than both!

5. 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

6. 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

7. 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

8. Canada’s Exports Chief exports: –Motor vehicles & parts, industrial machinery, aircrafts, telecommunications equipment, chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum Exports total (2007): $431.1 billion Top exporting partners: US (79.3%), UK (2.8%), China (2.1%)

9. Canada’s Imports Chief imports: –Machinery & equipment, motor vehicles & parts, crude oil, chemicals, electricity consumer goods Imports total (2007): $386.4 billion Top importing partners: US (54.4%), China (9.4%), Mexico (4.2%)

10. Which country is Canada’s biggest trading partner?

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? –6% What percentage of people live in poverty? –10.8%

13. Canada’s GDP $1.271 trillion (2007) GDP Per Capita--What is the value of goods and services produced per person? –$38,600 (2007)

14. 4 Factors That Effect Canada’s GDP Human Capital: Canada is investing in education & training (check out literacy rate!) Capital Goods: Canada is investing in new technology & building new factories Abundant Natural Resources Entrepreneurship

15. North American Free Trade Agreement Signed by the US, Canada, & Mexico in the mid-1990s Eliminated trade barriers between the 3 countries Free Trade between the 3 countries How has it affected Canada’s economy? –It eliminated trade barriers with US & Mexico, and allows them to trade more freely at a better cost

16. 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)