1. CANADIAN GEOGRAPHY 1202 Unit 4: World Trade

2. What is TRADE? Why do countries do it?

3. IMPORTING When goods and services are brought INTO a country

4. WHY DO WE IMPORT THINGS? PRODUCT NEEDS: products that are hard to get in Canada JOBS: Many people work in fields related to importing and distributing goods CHEAPER GOODS: Allows consumers to get less expensive products from other places MORE CHOICE: More choice means greater competition, which improves quality INTERNATIONAL DEVELOPMENT: Can promote wealth in trading partners

5. CANADA’S MAJOR IMPORTS Fruits and Vegetables from warmer climates Energy products (oil and natural gas) Forestry Products (tropical woods) Industrial Products (plastics and chemicals) Automobiles and Automotive Parts Machinery and Equipment (farming and aircraft) Electronics (TVs, cellphones, computers) Low-cost Goods (clothing and shoes)

7. Refer to Figure 9.26 on p. 408 for an up-to-date graph

9. EXPORTING Goods and services sold to another country

10. Why do we EXPORT things? INCREASED INCOME: goods and services that are sold creates revenue for us JOBS: Many people are employed in the export field ECONOMY OF SCALE: The more of something that is produced, the cheaper it will cost to produce, which means it will be cheaper to buy. INCREASED INNOVATION: Competition from other countries means that quality of products must be high.

11. CANADA’S MAJOR EXPORTS Agricultural products especially wheat and grains Energy products (oil and gas) Forestry products (lumber, pulp and paper) Industrial goods (metals) Automotive Products (assembled cars and parts) Pharmaceuticals (medications)

13. Refer to Figure 9.27 on p. 408 for an up-to-date graph

14. THE U.S: Our #1 TRADING PARTNER Is it a good thing???? Having a strong relationship with such a huge economic power is a huge advantage It could be risky, however to rely too heavily on another country – A downturn in the US economy could have negative effects on us.

15. CONTROLLING PRODUCTS CROSSING THE BORDER How is this done? The federal government uses a system of regulations and permits Restrictions on things such as arms and industrial waste Controls on agricultural products (ex. Chickens)

16. PROBLEMS ASSOCIATED WITH TRADE

17. Companies doing business with countries with poor labour and environmental laws

18. Buying cheaper foreign products can take away employment opportunities here in Canada

19. Governments of developed Western countries provide subsidies to farmers. Developing countries can’t compete with this.

20. Globalization means that the richest countries and richest companies have the greatest power and control over world trade.

21. Therefore, many of the producers of things like bananas, coffee and cocoa beans only receive a small portion of the profits made from them.

22. WAYS TO FIX THESE PROBLEMS

23. IMPORT SUBSTITUTION: buying local (Canadian) products instead of those produced elsewhere

24. FAIR TRADE PROGRAMS: return a larger share of profits of goods back to farmers.

25. Worldwide Free Trade: Would this be a good thing?