Lec 6: Canada in the World Economy

Question 1

Define time-space compression

Answer 1

processes that increase the speed with which transactions occur

Question 2

What are circulation technologies?

Answer 2

technologies that overcome the frictions of time and space.
- transportation tech
- communication tech

Question 3

Are circulation technologies the only cause for time-space compression?

Answer 3

no

Question 4

Why is time-space compression uneven?

Answer 4

because circulation technologies are located where demand and financial return are highest.

e.g. Can get to certain places quicker even though they are further, because flight paths are tailored to demand

e.g. world submarine cable system

Question 5

What are the first 5 stages of Canada’s links to the world economy?

Answer 5

Pre 19th C
- Canada exports staples to Europe

Mid 19th C
- Canada exports resources south of the border as the US Northeast industrializes

1867: Confederation
- railway system developed
- tarrifs imposed on raw material
- domestic, east-west trade flows

WW1
- west coast forestry industry develops

WW2
- Ontario and Qc’s position as manifactural hub of Canada solidified

Question 6

What happens to the canadian economy in 1965, 1970, 1988, and 1994?

Answer 6

1965
- Canada-US auto pact (Bilateral trade agreement with US)
- MANAGED (not free) trade
- southern ontario benefits most

1970s
- energy boom in Canada (oil in Alberta)

1988
- Canada-US FTA. Tarrifs removed for ALL sectors

1994
- Nafta
–> greater regional economic integration

Question 7

How do changes over time in merchandise trade and canadian GDP compare?

Answer 7

Trade has grown much faster than GDP, meaning trade now represents a larger fraction of GDP (higher trade to GDP ratio)

Question 8

What does Canada rely on to fuel its economy?

Answer 8

exports of raw materials

Question 9

In which sector does Canada have a trade deficit?

Answer 9

in services

Question 10

Describe the Western Shift of the Canadian Economy

Answer 10

great depression: shifts E because Prairies are more affected
1931-38: shifts W because of industrialization
1940: moves E because NFL joins Canada

over all: 300 km Eastward shift between 1956 and 2015

Question 11

How does merchandise trade flow change between 1988 and 1998?

Answer 11

Although inter-provincial flow still exceeds cross-border flow, it exceeds it by much less in 1998:

1988: inter-provincial flow 20 times > cross-border flow
1998: inter-provincial flow 12 times > cross-border flow

Question 12

Which countries represent the bulk of foreign direct investment in Canada?

Answer 12

1. US
2. Europe
3. Asia
4. SA

Question 13

Into which industry does most of foreign direct investment in Canada go?

Answer 13

1. manufacturing
2. mining and oil and gas
3. management of companies

Question 14

Into which parts of the world does most of Canada’s direct investment abroad go?

Answer 14

1. NA
2. Europe
3. Asia

Question 15

Into which industry does most of Canada’s direct investment abroad go?

Answer 15

1. Finance and Insurance

Question 16

What dominates chinese imports, and what does China import most from Canada (in 2004)?

Answer 16

Chinese imports are dominated by machinery and transport equipment, but imports from Canada are led by crude materials.

Question 17

What did Canada try to do in the 1990s and 2000s? Did this work?

Answer 17

Canada wanted to change the idea that we are dependent on staples.

No, data shows that this trend continues.