1. Advantages of International Trade

2. Why trade? To sell something we have so that we are able to buy something we need. To sell something we have so that we are able to buy something we need. Trade, in turn: Trade, in turn: –Creates jobs –Attracts investment –Leads to innovation –Provides a wider choice of products and services to Canadians!

3. Its like trading cards…. Say you buy a bunch of chocolate frogs (each of which comes with a collector’s card) Say you buy a bunch of chocolate frogs (each of which comes with a collector’s card) You end up with all the witches and wizards except for Dumbledore. You DO however, have two McGonagalls! You end up with all the witches and wizards except for Dumbledore. You DO however, have two McGonagalls!

4. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. A friend has all the cards as well, except McGonagal – but this friend also happens to have two Dumbledore cards. In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade! In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade!

5. International Trade Works in a similar way Works in a similar way Canadian farms grow more corn and soy beans than Canadians can eat. Canadian farms grow more corn and soy beans than Canadians can eat. Canada does not however, grow pineapples or bananas. Canada does not however, grow pineapples or bananas. Through Trade, these a partnership will allow each country to get those things it doesn’t have. Through Trade, these a partnership will allow each country to get those things it doesn’t have.

6. Top Products Imported to Canada Motor Vehicles Motor Vehicles Electronic parts and components Electronic parts and components Computing and peripheral equipment Computing and peripheral equipment Aircraft and aircraft parts Aircraft and aircraft parts Construction and mining machinery Construction and mining machinery

7. Job Creation Exports are the goods we produce in Canada and sell to other countries. Exports are the goods we produce in Canada and sell to other countries. –More than 50% of everything produced in Ontario is exported. –One out of three Canadian jobs depends on exports. –(The goods we ‘trade’ are sold for $$ on the international market.)

8. How are jobs created? Let’s say there are 20 people in a self-sufficient community. Let’s say there are 20 people in a self-sufficient community. 5 people grow food, 3 build houses, 2 knit wool clothing for everyone. 5 people grow food, 3 build houses, 2 knit wool clothing for everyone. People from another community see the wool clothing, and make a deal with the self-sufficient community to supply them with knit wool clothing. People from another community see the wool clothing, and make a deal with the self-sufficient community to supply them with knit wool clothing. Now 2 more people are needed to work to make sure there is enough clothing for both communities! Now 2 more people are needed to work to make sure there is enough clothing for both communities!

9. Attracting Investment Foreign companies will invest money in Canada to simplify trade or reduce costs. (ie. They will set up an office that has people that speak their language.) (…or they may build a warehouse to store up goods for large shipments – instead of importing a bit at a time) - This requires construction workers, warehouse staff, accountants, etc.

10. New Technologies If a business can create a machine that works better, faster, or cheaper – then it will be more competitive – and sell greater numbers! If a business can create a machine that works better, faster, or cheaper – then it will be more competitive – and sell greater numbers! Thus, there is a constant drive to improve, and create new technologies. Thus, there is a constant drive to improve, and create new technologies.

11. Diverse Products and Services A century ago, Canadian parents put oranges in their children’s stockings as a rare and expensive treat. A century ago, Canadian parents put oranges in their children’s stockings as a rare and expensive treat. Fresh oranges are now a staple in grocery stores. Fresh oranges are now a staple in grocery stores. Foreign trade opens up the world as a market, delivering a wide range of foods, fashions, and new inventions. Foreign trade opens up the world as a market, delivering a wide range of foods, fashions, and new inventions.

12. Benefits to the consumer Lower prices Lower prices Better quality Better quality Functional and innovative Functional and innovative designs designs

13. Are there disadvantages to International Trade? … definitely…. … definitely….

14. Disadvantages Support of Non- Democratic Systems Great hardship on people who have no choice but to grow a profitable cash crop (e.g. coffee beans) Great hardship on people who have no choice but to grow a profitable cash crop (e.g. coffee beans) Local farmers wishes to grow food for their families are ignored Local farmers wishes to grow food for their families are ignored

15. Disadvantages Cultural Identity Issues Culture is “exported” with the products sold internationally Culture is “exported” with the products sold internationally Symbols of American culture include products like Coca-Cola, McDonald’s and Nike. Symbols of American culture include products like Coca-Cola, McDonald’s and Nike.

16. Disadvantages Social Welfare Issues Maintaining safety standards, minimum wages, worker’s compensation, and health benefits cost Canadian businesses and Canadian taxpayers a great deal of money Maintaining safety standards, minimum wages, worker’s compensation, and health benefits cost Canadian businesses and Canadian taxpayers a great deal of money Countries that do not maintain these high standards can make products less expensively Countries that do not maintain these high standards can make products less expensively

17. Disadvantages Environmental Issues Canada has highly regulated environmental protection laws Canada has highly regulated environmental protection laws Many businesses may chose to do business elsewhere if the pollution controls, recycling laws and emission controls are not too stringent or expensive for them to meet Many businesses may chose to do business elsewhere if the pollution controls, recycling laws and emission controls are not too stringent or expensive for them to meet

18. Disadvantages Political Issues Ware and strife often occur because of natural resources. Ware and strife often occur because of natural resources. Thousands of people have been killed for control of oil, others for control of the diamond trade or even farmland. Thousands of people have been killed for control of oil, others for control of the diamond trade or even farmland. Trade in precious commodities can cause political alliances that do not help the local people Trade in precious commodities can cause political alliances that do not help the local people