Chapter 1
INTERNATIONAL INTERDEPENDENCE
Important Terms
1. Capital intensive An industry that requires a substantial amount of money (capital)
to start or operate
2. Commune Self-sufficient community based on principles of communal property and
shared responsibilities
3. Currency exchange rate The rate at which one currency can be exchanged for
another or for gold
4. End-product imports/exports Imports/exports of finished manufactured products,
ready for use by a consumer or by a producer of goods or services
5. Export and Import Permits Act A Canadian law that is used to impose trade
sanctions on goods by means of the Area Control List, the Export Control List,
and the Import Control List
6. Guilds Associations of merchants and craftspeople, started in the Middle Ages and
organized within a town for mutual aid or business benefit
7. Interdependence Reliance of two or more groups on the actions of one another to
fulfill certain wants or needs
8. Investment Canada Act (ICA) A Canadian federal act to provide for the review of
significant investments in Canada by non-Canadians
9. Labour Intensive An industry that required a large number of skilled or unskilled
workers
10. Primary Industries Industries that are based on raw materials from nature—such
as in agriculture, fishing and trapping, forestry and logging, and energy and
mining.
11. Primary Resources Raw materials stemming from a country’s primary resources
12. Protectionism The practice of protecting domestic industries and economies.
13. Resource-based imports/exports Imports and exports of primary resources
14. Self-sufficiency The ability to provide for all of one’s basic needs without relying on
anyone else
15. Semi-manufactured items (products) Partially manufactured to the specifications
of manufacturers, to be finished and used in the final manufacture or assembly of
products
16. Special Economic Measures Act A law that authorizes the Canadian government
to apply economic sanctions in response to a serious threat to international
peace and security
17. Tariff Customs duty on merchandise imports, the purpose of which is to give a price
advantage to similar locally produced goods or to raise revenues for the country
18. United Nations Act Canadian Act that incorporates into Canadian law decisions
passed by the UN Security Council
19. World Trade Organization (WTO) The principal international organization that
deals with the rules of trade between and among nations