TRADE BASICS
What is the main reason Canadians trade with other countries?
To get goods and services they need or want but might not have locally.
Why is Canada considered part of the global economy?
Because it buys and sells goods and services with countries around the world.
What organization creates trade rules and solves problems between countries?
World Trade Organization, or WTO.
Which country is Canada’s biggest trading partner?
United States.
What was one of the main reasons Canada wanted to join NAFTA?
To increase exports and strengthen economic ties with the U.S. and Mexico.
What’s the difference between a good and a service? Give an example of each.
A good is a product you can use (like a bike), while a service is a task done for you (like mowing a lawn).
What’s one example of a product Canada imports because it’s hard to grow or make here?
Coffee or bananas.
What does “consensus” mean when countries make decisions in the WTO?
Most countries in the group agree on a decision.
What is a circle graph used for when studying trade?
To show how much Canada trades with each country as parts of a whole.
What is a maquiladora?
A factory in Mexico that imports materials, produces goods, and exports them, usually at lower costs.
What word describes when a country buys products from other countries and brings them in?
Import.
Name one positive and one negative effect of shipping goods worldwide.
Positive – makes goods available everywhere; Negative – uses a lot of energy, affects wages, harms the environment.
What is fair trade, and why do some people support it even if it costs more?
It ensures farmers and workers are paid fairly and treated well; people support it for ethical reasons.
Give two examples of natural resources Canada exports.
Oil, minerals, lumber, or wheat.
How did NAFTA remove trade barriers between Canada, the U.S., and Mexico?
By eliminating taxes on many imported and exported goods.
How can investing money help a country’s economy grow?
Investments can lead to profits, which allow people and businesses to expand, similar to how countries invest and trade to grow their economies.
Why do some Canadian companies import cheaper goods?
To increase profits, even though it can affect workers at home and abroad.
Why do some people think the WTO has hurt farmers in poorer countries?
Because the rules often benefit richer countries and leave poor farmers at a disadvantage.
Why did China become an important trading partner for Canada after 2013?
Canada exports wood, seeds, minerals to China and imports electronics, clothing, and furniture.
Was NAFTA a good decision for Canada?
NAFTA had both positive and negative effects on Canada:
o Positive: It allowed Canadian companies to export more products, especially agricultural goods, to Mexico, which benefited them financially.
o Negative: Some jobs, particularly in manufacturing, moved to Mexico due to lowerwages
Why might a country choose to export extra products instead of keeping them?
To make money/ profits by selling surplus goods to countries that need them.
What critical question does trade with China raise beyond economics?
Whether Canada should trade with a country that has human rights issues like child labour.
Why doesn’t the WTO make rules about workers’ wages or conditions?
Its main focus is on trade rules, not labour standards, leaving worker protections to individual countries.
What ethical and environmental concern comes from Canada’s trade with China, especially related to electronics?
Electronic waste (e-waste), which raises questions about how old devices are disposed of and its environmental impact.
Even though some manufacturing jobs were lost under NAFTA, why do some argue the overall impact on Canadian jobs wasn’t all negative?
Because overall jobs were created, though many were not full-time or well-paid.