Chapter 2: Canada's Place in the world

Question 1

What issue arises from currency?

Answer 1

• The appreciation of the Canadian dollar makes export pricing less attractive to buyers outside of Canada.

Question 2

Who are Canada’s top 3 trading partners?

Answer 2

1. U.S.A
2. United Kingdom
3. China

Question 3

What does enhancing Canada’s foreign investment opportunities do?

Answer 3

International competitiveness. It revitalizing domestic industry and increases the flow of goods and services between Canada and its trading partners.

Question 4

What does foreign investment produce?

Answer 4

1. More jobs
2. Introduces new technology
3. New management techniques
4. New market access

Question 5

What does Canada provide to companies and individuals that invest abroad in Canada?

Answer 5

• Stability
• Transparency
• Protection
• Predictability
• Non-discrimination

Question 6

What are free trade agreements?

Answer 6

Reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. Trade agreements build a strong foundation between countries and open doors between buyers and sellers.

Question 7

Explain the issue of diversification

Answer 7

Canadians have searched for a trade alternative to the United States in the hopes of diversifying ties to the world economy and making the country less dependent on one dominant partner. (Meaning: finding different trading partners).

Question 8

What does the govt. negotiate to help support exporters?

Answer 8

Free trade agreements

Question 9

What are some of the benefits of trade agreements?

Answer 9

• Secure access to market
• Exporters are provided with protection
• Better prices for Canadian consumers
• Increased efficiency and productivity in the Canadian economy.