International Trade 4 Flashcards
3 reasons Canada would want good trade relations with foreign countries
-Easier to ship there
-Gain products from different places
-Promote
What’s a trade deficit
When a country’s imports of a goods or service exceed its exports
What’s a trade surplus
When a country’s exports of goods and services exceed its imports
Does Canada have a trade deficit or surplus
Slight deficit
If a country has a trade deficit, what should they do?
Depreciate the exchange rate
Advantages and disadvantages of government putting stiffer controls on imports (increasing # of jobs in Canada)
Advantages: more jobs
Disadvantages: Harder to get a job, harder to export/import products
Factors that affect flow of goods and services between countries?
-competitiveness
-exchange rates
-Consumer demand
-Policies
Embargo
Trade restriction placed on the importation of a good or service
What is a quota
Trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time
Why do countries set quotas?
To help regulate the volume of trade between them and other counties
What is WTO?
World trade organization dealing with rules of trade between nations
WTO establishment
January 1 1995
What does NAFTA stand for
North America Free Trade Agreement
What countries are involved in the NAFTA
Canada USA Mexico
What have been impacts of NAFTA on Canada
Enhancing Canadas attractiveness to foreign investors while providing more opportunities for Canadians to invest in NAFTAS partners economies
