U1 Why Trade Matters Flashcards
1
Q
How does trade enhance Canadian life?
A
- greater prosperity
- productivity and improved competitiveness
- Allows Canadian companies to pursue global market opportunities
2
Q
How does trade support growth and employment in Canada?
A
- Supports the economy’s full potential and real GDP growth
- Contributes to reduction in government debt and budget surpluses
- Creates jobs (10,000 for every $1 billion increase in exports)
3
Q
Why is opening export markets important for Canadian companies?
A
- Limited domestic market would result in fewer economies of scale
- Higher production costs passed on to Canadian consumers
4
Q
What are the benefits of imports for Canada?
A
- Greater competition and lower prices
- Allows Canadians to allocate income more efficiently
- Provides diverse goods at a lower cost, increasing consumer options
5
Q
How do imports benefit Canadian producers?
A
- Enhance productivity through imported technology and machinery
- Compete in global markets with complex manufactures
- Gain experience and success in export markets through increased competition at home
6
Q
How can difficulties caused by imports be addressed?
A
- Cooperation among industry, local communities, and government authorities
- Well-conceived adjustment assistance programs
- Offset transition costs
- Ensuring benefits of open markets
- Minimizing impact on specific groups
7
Q
What is Canada’s trade policy?
A
- Support for a rules-based international trading system
- Active participation in negotiations at the WTO and regional/bilateral initiatives
- Creating a level global playing field for Canadian workers, small businesses, and entrepreneurs
8
Q
How does trade expand Canada’s choices and alternatives?
A
Fuels economic growth and prosperity to sustain social and cultural policies
9
Q
How does trade contribute to Canada’s future?
A
- Fuels economic growth to sustain social programs
- Trade liberalization and expansion are in line with social and cultural policies.
