Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

CANADA &

INTERNATIONAL

TRADE

Imports (raw materials, processed material, semi-finished goods, manufactured products & services) flow into Canada. Goods, raw materials & services also leave Canada as Exports.

Trade permits Canada to acquire products it could not produce independently & sell excess goods & services to foreign markets.

Canada exports agricultural products like wheat to countries that cannot grow them.

The Asia-Pacific Economic Corporation (APEC) is an economic development organization formed in 1989. It includes Canada & other Pacific Rim countries that trade together often.

Canada’s top Trading Partner is the United States because of:

  • Their close proximity
  • The large market size (10x Canada)
  • The transportation infrastructure
  • The similar culture
  • A history of free trade agreements
  • 1988 bilateral Free Trade
  • 1993 NAFTA adds Mexico

Canada’s Current Free Trade Agreements

  • North American Free Trade Agreement (NAFTA): 1994
  • Canada - Chile: 1997
  • Canada - Israel: 1997
  • Canada - Costa Rica: 2002
  • Canada - Peru: 2009
  • Canada - European Free Trade Association : 2009
  • Canada - South Korea: 2015
  • Canada - Colombia: 2011
  • Canada - Jordan: 2012
  • Canada - Panama: 2013
  • Canada - Honduras: 2014

Source: http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/fta-ale.aspx?lang=eng

Source: http://www.apec.org/about-us/about-apec/member-economies.aspx

The Gordie Howe International Bridge - expected to open in 2020 - should reduce congestion at the Detroit-Windsor border.

Canada Major Trading Partners

  • United States: US$313.5 billion (76.7% of total Canadian exports)
  • China: $15.8 billion (3.9%)
  • United Kingdom: $12.5 billion (3.1%)
  • Japan: $7.6 billion (1.9%)
  • Mexico: $5.1 billion (1.3%)
  • India: $3.3 billion (0.8%)
  • South Korea: $3.2 billion (0.8%)
  • Hong Kong: $3.1 billion (0.7%)

In 1993, the European Union (EU) united 12 member states into a single market. Goods, services, labour & capital can move freely. Today the EU has 27 members & a population of more that 370 million people.

EU countries are highly dependent upon each other.

Due to concerns about job loss due to international trade, Great Britain recently voted to leave the EU, although Brexit has not been finalized yet.

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html

Dairy Farmers are worried about the Trans-Pacific Partnership deal with Asia.

Reflection

Why would some business & workers protest Free Trade Agreements?

Trade with China

  • Why has China surpassed the United Kingdom as Canada’s second largest trading partners?
  • What are the opportunities for Canada?
  • What are the risks of increased trade with China?

Each country calculates their Balance of Trade by adding exports & subtracting imports.

Canada mostly trades with companies that have similar cultures because those businesses & consumers share:

  • Preferences
  • Non-Verbal Communication
  • Decision-Making
  • People Skills
  • Punctuality
  • Customs

Imports allow businesses to sell diverse goods to their customers but there are risks to the seller. The product could fail or costs may be higher than expected.

To reduce the risks:

  • Measure consumer interest.
  • Selecting good foreign suppliers.
  • Learn about the other culture.
  • Check goods for quantity and quality upon arrival.

Source: http://www.tradingeconomics.com/canada/balance-of-trade

G20 protests in Toronto get out of hand in 2010.

Burger King is planning an expansion of Tim Hortons in the United States.

Source: http://www.theglobeandmail.com/report-on-business/economy/china-beats-out-britain-as-canadas-no-2-trade-partner/article8903142/

Increased dairy imports may benefit consumers but harm producers.

Direct Exporting is exporting a product directly to an importer without using an intermediary.

Indirect Exporting is exporting a product to an intermediary who then conveys the product to the importer.

Larger established companies usually use direct exporting while newer ones utilize indirect exporting. A car might be directly exported but a commodity would be indirectly exported.

If a country exports more than they import, they have a Trade Surplus. This means that money & jobs flow into the country & products flow out.

LEARNING GOAL

List of Resources

  • A.P.E.C. Secretariat. (2016). Member Countries. Asia-Pacific Economic Cooperation. Retrieved 8 November 2016, from http://www.apec.org/about-us/about-apec/member-economies.aspx
  • CBC News. (2016). Loonie tumbles as Canada loses 31,200 jobs in July. CBC News. Retrieved 7 November 2016, from http://www.cbc.ca/news/business/jobs-canada-july-1.3708611
  • Central Intelligence Agency. (2016). Canada. The World Factbook. Retrieved 7 November 2016, from https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html
  • Global Affairs Canada. (2016). Canada's Free Trade Agreements. Global Affairs Canada. Retrieved 7 November 2016, from http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/fta-ale.aspx?lang=eng
  • McKenna, B. & Blackwell, R. (2013). China beats out Britain as Canada’s No. 2 trade partner. The Globe and Mail. Retrieved 8 November 2016, from http://www.theglobeandmail.com/report-on-business/economy/china-beats-out-britain-as-canadas-no-2-trade-partner/article8903142/
  • Trading Economics. (2016). Canada Balance of Trade. Trading Economics. Retrieved 7 November 2016, from http://www.tradingeconomics.com/canada/balance-of-trade

Trade Agreements between countries allow goods and service to flow more freely across borders. These agreements lead to Free Trade, the elimination of all Trade Barriers.

Free Trade allows domestic businesses to sell their products more cheaply abroad since duties are not added. Consumers can buy diverse products cheaply since tariffs are not added.

Canada has signed Trade Agreements with most of the most of the country’s large trading partners.

Countries participate in economic groups in order to . The Group of Seven (G7) is an association of the world’s most powerful industrialized democracies. Meeting annually, the G8 deals with economic & political issues such as energy, employment, the environment, human rights & trade.

The Group of 20 (G20) was created after the Asian Financial Crisis in the 1990s to incorporate emerging economics such as Brazil, Russia, India & China.

Canada’s Trade Deficit rose in 2016 (the country exported more than it imported), contributing to job loss & a falling Canadian dollar.

Appreciate some of the issues facing Canada caused by International Trade.

If a country imports more than they export, they have a Trade Deficit. This means money & jobs leave the country as products arrive.

Exporters & Importers reduce risks by planning.

They conduct market research to ensure that there are consumers for their goods & services.

Source: http://www.tradingeconomics.com/canada/balance-of-trade

Target’s Canadian expansion failed 2015.

Source: http://www.cbc.ca/news/business/jobs-canada-july-1.3708611

Learn more about creating dynamic, engaging presentations with Prezi