Trading Canada's Resources:
International Trade Connections
By the end of this lesson I will:
1. Know key trade terminology.
2. Know who Canada does trade with and what goods we are trading.
3. Know Canada's place in the world economy.
4. Know how Canada protects our interests.
Record the following key terms into your notebook:
Gross Domestic Product (GDP)
GDP per capita
Calculating Gross Domestic Product
GDP is calculated by adding:
1. Public consumption
2. Government expenses
4. Net exports (exports-imports)
GDP Per Capita Globally
Understanding Free Trade & Protectionism
Free trade removes barriers on exports and imports between nations, allowing goods and services to move freely. This will allow a nation to maximize its competitive advantage to increase the GDP.
Protectionism is meant to protect a nation's local economy from goods and services that are import from other nations at a cheaper cost. This is usually done by placing a tariff on an import that increases the cost of that product.
A tariff will place on an import in an attempt to protect local jobs and economies from cheaper products produced internationally.
A bike made by Norco in British Columbia will cost $400 to make and sells for $600 at a local shop.
A bike made by Santa Cruz in California, United States will cost $350 to make and can be sold for $550 at the local bike.
Both companies will have the same profit on each bike, but consumers are more likely to buy the cheaper product. Norco will not make as much money as Specialized.
To protect Norco's jobs and keep them competitive against other bike companies, a Tariff may be placed in imported bikes.
GATT and the WTO
Video Response Questions:
1. Create your own definition of Globalization.
2. Globalization has both positive and negative effects on a nation's culture and economy. Record the positive influence and negative influence of globalization on a nation's economy. What are the positive and negative influence of globalization on a nation's culture?
Canada's Economic Indicators
1. What is Canada's GDP and GDP per capita?
2. Where does Canada's GDP rank internationally? Who is in the top five?
2. Does Canada have a trade deficit or surplus?
4. How many barrels of oil per day does Canada produce?
5. Where does Canada rank for current oil production and number of barrels in reserve?
Who Does Canada Trade With?
Imports & Exports By Nation
What goods/services is Canada exporting?
Using the link below, group Canada's top 10 exports into one of the four industrial sectors.
What industrial sector do the majority of our exports come from? (Yes, you will need to do some math to determine our most valuable industrial sector). Why do you think our most valuable exports are in an industrial sector that does not match the sector that most Canadians are employed in?
Connections With The United States
North American Free Trade Agreement (NAFTA)
This multilateral free trade agreement between Canada, Mexico and the United States came into effect on January 1st, 1994. This created the largest free trade zone in the world. The goal of NAFTA was to increase trade and the standard of living between all three nations by eliminating barriers and integrating the economies of the nations. It is now common for all three nations to work together to produce goods. Since signing the agreement, trade between the three nations has increased from $8.0 trillion in 1993 to $19.2 trillion in 2012. Each nation has to following a set of rules governing trade to ensure that all nations will prosper and not gain an advantage over one another.
Video View and Response
Video Response Questions:
1. How many people cross the Canada-United States border each day?
2. What is the total value of bilateral trade between the United States and Canada?
3. How did the 9/11 terrorist attacks change trade between Canada and the United States?
Video Response Questions:
1. What are some of the economic benefits of free trade between Canada and the United States?
2. In the economic relationship between the United States and Canada, what industrial sector provides the majority of our exports to the United States? Provide an example from the video.
3. In the economic relationship between the United States and Canada, what industrial sector provide the majority of our imports from the United States? Provide an example from the video.
4. In your opinion does this relationship benefit Canada?
Why Is Canada So Competitive Internationally?
Canada's Competitive Advantages
Read through the following article and identify the five competitive advantages Canada has in the international economy. For each advantage, record write one sentence briefly explaining that advantage.
How important is our relationship with and proximity to the United States?
Location Factors and Manufacturing
In groups, you will be tasked with reviewing one of the following six location factors for manufacturing:
1. Proximity of Raw Materials.
2. Location of Markets.
3. Availability of Fresh Water and Power.
4. Labour Supply
6. Political Factors
Your group will be responsible for creating a post (provided in class) that outlines the influence this factor has on the location of manufacturing, the advantage provided by locating a business near this factor and an example company or product. You can be creative and use diagrams and images to explain your findings!