Canada

Topic 1: Scarcity, Choice, and International Trade

Canada's Market Economy

Currently, Canada has a market economy, one with many freedoms for the businesses to run as they wish. Although Canada clearly represents an open-market economy due to the high trade freedoms, the investment freedoms, the labor and the monetary freedoms, some may believe the country represents somewhat of a command economy. They may have these beliefs due to the link of the graph below, showing there is some government control on most of the freedoms and systems.

Link to the graph ^^

Graph The Data. n.d. The Heritage Foundation. 7 March 2014. http://www.heritage.org/index/visualize?countries=canada|unitedstates&src=country.

Canda's Goods

Canada's top two goods are crude petroleum, totaling 70.1 billion dollars, and cars, totaling 40.4 billion dollars. Comparing to Canada, the United State's goods include cars, totaling 45.9 billion dollars, and crude petroleum, totaling 2.04 billion dollars.


The PPC Graph and the comparative advantage chart have been copied onto a piece of paper which I will turn in Monday due to technology complications.


The U.S. has the absolute advantage for selling cars and Canada has the absolute advantage for selling crude petroleum. The U.S. has the comparative advantage for selling cars due to their opportunity cost for making them is less than that of Canada's and Canada has the comparative advantage for selling crude petroleum due to their opportunity cost being lower than the United State's. Therefore, Canada shall import cars and export crude petroleum and the United States shall import crude petroleum and export cars.

Countries to trade with

Canada trades with the United States, Japan, Mexico, China, Algeria, and the United Kingdom. Canada imports goods such as cars, vehicle parts, and petroleum from these countries and exports goods to these countries, including goods of cars, petroleum, and gold. Due to these countries lack of and excessiveness of a certain product, they decide to trade with Canada to even out the numbers of the products.

Trading

A way to create more resources to make more products is by trading with other countries, therefore creating more wealth. Canada both imports and exports petroleum, cars, and gold, yet they succeed to export more than they do importing with the total exports totaling to 444 billion dollars and the imports totaling to 266 billion dollars.

Works Cited

Canada. n.d. The Heritage Foundation. 7 March 2014. <http://www.heritage.org/index/country/canada>.

Graph The Data. n.d. The Heritage Foundation. 7 March 2014. <http://www.heritage.org/index/visualize?countries=canada|unitedstates&src=country>.

North America: Canada. n.d. 7 March 2014. <https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html>.

Simoes, Alexander. Algeria. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/explore/tree_map/hs/import/dza/all/show/2010/>.

—. Canada. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/profile/country/can/>.

—. China. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/profile/country/chn/>.

—. Japan. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/profile/country/jpn/>.

—. Mexico. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/profile/country/mex/>.

—. United Kingdom. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/explore/tree_map/hs/import/gbr/all/show/2010/>.

—. United States. n.d. Marco Connections. 7 March 2014. <http://atlas.media.mit.edu/profile/country/usa/>.