Ch. 3 Flashcards
no country, not even …, can produce …
even a technologically advanced one, all of the products that its people want and need
we trade to …
get goods that are not available locally
what does Canada trade for? What does it export?
we trade for citrus fruit. we produce lumber (and more)
define exporting
selling products (i.e., goods and services) to another country
define importing
buying products from another country
define “balance of trade”
the relationship between exports and imports
define “balance of payments”
the difference between money coming into a country (from exports) and money leaving the country (for imports)
define “current account”
the difference between money coming in and going out of the country from all sources
define “dumping”
selling products cheaper in foreign markets than at home
define “protectionism”
using government regulations to keep foreign goods out
what does MNC stand for
multinational corporation
while Canada has a small population …
it produces vast quantities of products, ranking high in terms of nations that exports
exports alone account for … Canadian jobs and generate …
one in five. 30 cents out of every dollar
over __% of our … and __% of our .. are with the United States
75% of our exports and 65% of our imports
list the three FORCES affecting trading in global markets
economic and financial forces, technological forces and political - legal and regulatory forces
describe “mercantilism”
idea was for a nation to sell more goods to other nations that it bought from them; have a favourable balance of trade
describe what tariffs are
a tax imposed on imports (there are two kinds)
list and describe the two types of tariffs
revenue tariffs- generate funds for the government
protective tariffs- meant to save jobs for domestic workers
non-tariff barriers are not … (3)
but can be …
as specific or formal as tariffs, import quotas, or embargoes but can be as detrimental
non-tariff barriers include …
restrictive standards or paperwork that detail exactly how a product must be sold in a country
what is the World Trade Organization and how many members does it have?
a world trade referee for countries wanting to grieve that parties to trade agreements have broken the agreements. 164 members
what does the IMF do? (and what does it stand for?)
negotiates with a country to provide financial assistance if the country will agree to adopt certain policies to stabilize its economy (International Monetary Fund)
what does CUSMA stand for and what is it?
Canada-US-Mexico Agreement. a free-trade area among Canada, the US and Mexico
