Each year, Canadians import (______________________________________________) a certain amount of goods.
2005 – 380 B 2006 – 396 B 2007 – 406 B
Each year, Canadians export (______________________________________________) a certain amount of goods.
2005 – 436 B 2006 – 440 B 2007 – 450 B
If exports exceed imports, the difference between them is called the ________________ .
If imports exceed exports, the difference between them is called the ________________.
In 2007, Canada had a trade surplus of 450B – 406 B = 44 B
_______________________________ are terms that refer to the difference between how much we import of a particular product and how much we export of that same product.
Example: We import $7M dollars worth of apples and export $3M dollars worth of apples, in this case, we have a net import $4M dollars.
The Importance of Exporting
1) To pay for the things that we import.
2) To keep our economy healthy. With fewer exports, we would produce less and unemployment would therefore be higher and the people poorer.
3) To lower the prices of Canadian-made goods for Canadians. When products are made in higher quantity, (for export and for local purchase) they can be sold cheaper.
______________ – is a tax placed on an imported product.
- Significance? -Tariffs will increase the cost of an imported item (e.g. BMW,
VW)
-Tariffs may increase cost to the point where a country does not
want the goods anymore (remember, this could affect Canadian
goods being allowed into another country as well as goods
being allowed into our own).
_____________________
– is the government’s policy of using tariffs and having rules to
limit imports.
- Significance? -Done to give Canadian companies an advantage over foreign
companies who are often larger and can produce goods cheaper.
_____________________ – is the governments policy of eliminating tariffs and rules
designed to restrict trade.
- Significance? -Supposed to enhance trade among nations which is supposed
to be good for everyone involved.