Question 1

What are tariffs?

Accepted Answer

Taxes or duties put on imported products or services. A tariff raises the cost of imported goods so that consumers will purchase locally manufactured products instead of less expensive imports. This is also known as protectionism.

Question 2

Winners of tariffs?

Accepted Answer

Domestic governments - they collect the additional taxes Local producers - their goods are more competitively priced Local employees - the people working in local companies keep their jobs

Question 3

Losers of tariffs?

Accepted Answer

Foreign producers - their goods are now more expensive Consumers - their prices of the products go up and consumers are forced to pay higher prices Foreign employees - the people working in companies overseas lose out on opportunities

Question 4

What are trade quotas?

Accepted Answer

Another form of protectionism. A trade quota is a government-imposed limit on the amount of product that can be imported in a certain period of time. The US has trade quotas for Canadian chicken, pork, dairy products, firearms, softwood lumber, and textiles.

Question 5

What are trade embargoes?

Accepted Answer

Banning of a trade on a specific product or with a specific country. example: In 2003, Canada suffered a major economic blow when 30 countries issued a trade embargo on Canadian beef exports due to mad cow disease (bovine spongiform encephalopathy)

Question 6

What trade sanction does Canada have with Iraq?

Accepted Answer

No Canadian is allowed to trade arms with anyone from Iraq.

Question 7

When do trade barriers exist? (hint: standards)

Accepted Answer

Countries have different standards for the way products are used or how they perform. Standards for environmental protection, voltage in electronic devices, health and safety Manufacturers must take modifications into account Example: hair dryers in Canada operate on different electrical current and use different wall sockets than in Europe.

Question 8

Winners of a high Canadian Dollar? (page 52)

Accepted Answer

Importers Canadian travelers Major league sports teams (ones operating in Canada because players are paid in USD)

Question 9

Losers of a high Canadian Dollar? (page 53)

Accepted Answer

Exporters Canadian tourism Canadian retailers

Question 10

Canada's top 10 import partners?

Accepted Answer

1. United States: US$363.2 billion (76.8% of total Canadian exports) 2. China: $17.4 billion (3.7%) 3. United Kingdom: $13.8 billion (2.9%) 4. Japan: $9.7 billion (2.1%) 5. Mexico: $5 billion (1%) 6. Hong Kong: $4.2 billion (0.9%) 7. Italy: $3.8 billion (0.8%) 8. South Korea: $3.8 billion (0.8%) 9. Netherlands: $3.5 billion (0.73%) 10. Belgium: $3.1 billion (0.65%) http://www.worldstopexports.com/canadas-top-import-partners/2453

Question 11

Canada's top 10 export partners?

Accepted Answer

1. United States 2. China 3. United Kingdom 4. Japan 5. Mexico 6. Germany 7. South Korea 8. Netherlands 9. France 10. Hong Kong http://www.statcan.gc.ca/daily-quotidien/141205/t141205b001-eng.htm

Question 12

Members of the G8?

Accepted Answer

France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia http://www.cfr.org/international-organizations-and-alliances/group-eight-g8-industrialized-nations/p10647

Question 13

Members of the G20?

Accepted Answer

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States of America. http://www.telegraph.co.uk/finance/g20-summit/5075115/G20-what-is-it-and-how-does-it-work.html

Question 14

How does the WTO differ from the G8?

Accepted Answer

The G8 does not settle trade disputes. Instead, it's purpose is to discuss macroeconomic issues, such as economic growth, trade liberalization, and helping developing countries.

Question 15

What is the purpose of the G20?

Accepted Answer

To provide a discussion forum for the major economies of the world. It exists to strengthen economic ties throughout the world. It focuses on economic and employment growth, eliminating trade barriers, reforming financial institutions and regulations, and restructuring global financial organizations such as the IMF and the World Bank.

Brainscape's Knowledge GenomeTM

Trade barriers, winners and losers of a high CAD, Canada's top 10 import/export partners, G8, G20 Flashcards

Brainscape's Knowledge Genome^TM