Read the text pages 361-364 and answer the following:
1. Where does the word “economy” come from?
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2. a) Explain the difference between needs and wants.
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b) Identify four things you consume (buy) that are just luxuries. i. ___________________________________ iii. __________________________________ ii. __________________________________ iv. __________________________________
3. Why are people’s needs and wants considered unlimited?
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4. In Canada we have an economic system that helps Canadians meet their needs and wants. Our economy is a mixture of free enterprise and government-run enterprises and is called a mixed economy.
a) Explain what free enterprise means.
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_________________________________________________________________________________ b) List four examples of government-run enterprises or programs. i. ___________________________________ iii. __________________________________ ii. __________________________________ iv. __________________________________
5. Define the following:
Engines of growth_____________ ___________________________________________________
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Leading Economic Indicators_________________________________________________________
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6. Refer to FIG. 12-5 to answer these questions:
a) Identify the three types of economies Canada has had since the Industrial Revolution. i. ____________________________________ Economy ii. ___________________________________ Economy

iii. __________________________________ Economy
b) What was the key economic factor between 1918 and 1981? ______________
c) What are the four engines of growth in our present economy? i. ______________________________________ ii. _____________________________________ iii. _____________________________________ iv. _____________________________________
7. Identify three ways farmers use computers to help them run their operation. i. ___________________________________________________ ii. __________________________________________________ iii. _________________________________________________
Working for a Living
1. Identify four occupations with good work prospects for the future. i. ________________________________ iii. __________________________________ ii. ________________________________ iv. __________________________________
2. Explain what FIG. 12-7 shows about the importance of education with respect to employment.
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3. Study FIG. 12-8. How does working in Manitoba compare with Canada as a whole?
Read Pages 371-373
1. a) What exactly is a union?
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b) What idea are unions based on?
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2. Define the following: (use the glossary at the back of the textbook). a) Craft Union ____________________________________________________________________ b) Industrial Union_________________________________________________________________
3. Explain what a union local is. Be specific in your answer.
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4. Identify four things unions try to negotiate for their members. i. ___________________________________ iii. __________________________________ ii. __________________________________ iv. __________________________________
5. Unions seek to promote workers’ welfare through a process called collective bargaining. The union acts collectively, that is, on behalf of all its workers. Its goal is to bargain with employers to obtain the best conditions possible for its members.
a) Describe the first stage in collective bargaining.
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_________________________________________________________________________________ b) Explain what happens if negotiation is unsuccessful.
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c) If mediation is unsuccessful, a work stoppage might occur. There are two kinds of work stoppages: strikes and lockouts. Use the glossary to define each one.
STRIKE: _________________________________________________________________________
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LOCKOUT: ______________________________________________________________________
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Globalization is a term that refers to how people and nations are becoming ever more interconnected.
Increasing international trade makes the products of multinational companies available to consumers all over the world. Trade of food, medicines and consumer goods allows us to use the Earth’s resources to provide employment and improve living standards. Every day telecommunication technologies instantly transmit news, ideas, money and music – culture – to every person on the planet. Increasing passenger travel on jets and ships carry millions of people from nation to nation every year.
Globalization brings many challenges. Just as the pollution of Earth’s air and water is a global concern, so is the transmission of deadly diseases and terrorism a danger to everyone on the planet. Isolated political and ethnic conflicts in regions threaten to expand to involve other nations. The identity of Canadians throughout the world is that of a people actively involved in trade, giving humanitarian aide, providing troops for peace keeping, spreading democracy and civil rights, and searching for ways to achieve sustainable development to protect Earth’s environment.
Global Breakfast
Let’s look at the Canadian consumer – YOU – as a player in globalization. Consumer goods link Canadians to all parts of the world. Generally we are passive consumers, buying what we want or what we have been persuaded to buy without much thought about the consequences. In this reading you are going to get a closer look at the consequences of the choices you make.
“I awoke this morning at seven o’clock to the ringing of my alarm clock …”
Your clock is a product of the Sony Corporation, based in Japan. The clock was assembled in a Sony plant in Brazil from component parts produced in Japan, Mexico, and West Germany. It was shipped from Brazil to Canada in a Greek-owned ship manufactured in Sweden, licensed in Liberia and staffed by a crew from
Portugal.
“I padded across my warm rug …”
Your warm carpet was made in India in a carpet industry that uses bonded child labor. In theory, these children are working to pay off a loan made to their parents, but in reality the children are slaves because the terms of the loan make it a debt that can never be repaid. The children are also used because of their nimble fingers, keen eyesight and ability to sit in the same position for hours. Frequently such working conditions lead to leg and back deformities, water retention in the knees, swelling or infection in the fingers, breathing problems, lung infections and tuberculosis. The children are exploited because they are the cheapest labor available.
“… pulled on a track suit, laced up my Nike sneakers and went for my morning run.”
Your track suit was made in the Philippines by women working in factories for long hours for extremely low wages. These conditions include over crowding, insufficient air circulation, exposure to health risks such as chemicals and fibres in the air, physical abuse, and few breaks for attending to physical needs. If they complain they are fired or worse. Your Nike sneakers may have been made in Mexico where as many as five to ten million children work illegally. The toxic wastes from the plants and raw sewage from the lack of sanitation, coupled with absence of housing, electricity and schools, makes life very difficult.
“Returning home, I showered and cleaned up.”

Some of your shower products, such as soap and shampoo are made by Proctor Gamble, a US multinational company. Proctor Gamble controls 80% of the disposable diaper market in the US. The diapers are manufactured in Taiwan and shipped to Canada. These plastic disposables raise many serious questions. They can remain intact for up to 500 years and little is known about the health effects of tossing diapers still containing urine and feces into landfills. Disposable products are more expensive and more harmful to the environment than reusable products.
“Then I dressed quickly in my favorite cotton shirt.”
Your shirt started in the cotton plantations of El Salvador, Central America, where workers pull cotton for one to two dollars a day under the hot sun. They are exposed to pesticides, banned in Canada, and are often applied improperly. They have no access to medical care. The cotton is then shipped to the US. In
South Carolina the cotton is spun and woven into long sheets of fabric by the low-wage textile workers of
Burlington Mills, the largest textile company in the US. At this stage, a retailer, such as the Sears Company, who will eventually sell the dress or shirt, buys the cloth. Sears ships the cloth to Haiti where it is distributed to small sweatshops where women textile workers, paid by the number of dresses they produce, earn about three dollars daily.
“While my coffee perked, I sliced a banana over my bran flakes, spread peanut butter on my toast, then sat down to eat breakfast.”
The peanuts came from Senegal, the coffee from Colombia. The sugar may have come from the
Dominican Republic, but more likely it is a domestic product. The banana came from Honduras who export to Canada so that they can buy tractors. However, the trade is weighted heavily in our favor. In
2006, it took 31 tonnes of bananas to purchase one tractor. Banana-producing countries receive only 22 cents of every dollar that we spend on bananas. The bulk of the revenue goes to large foreign-owned corporations.
Canada, like the United States, imposes duties on roasted coffee and cocoa powder, but in their unprocessed form coffee and cocoa can freely cross borders. This system ensures that the supplying country loses out on profits. A lot more money is made by food processors in wealthy countries than by the farmers who supply them. Coffee also has environmental consequences for the country of origin.
Washing the coffee beans causes severe river pollution.
Sugar, peanuts, and coffee are examples of cash crops, which have taken over the land previously used in
Third World countries for the peasants’ subsistence crops. This changes the local food consumption patterns, always for the worse. Peasants who are thrown off their lands by the plantation owners have no choice but to cut into rainforests to create cropland to plant food for their families.
“Shortly after 8:30 I grabbed my sweater.”
Your new sweater is a product of the Patagonia Company and is made out of old plastic pop bottles. This company undertook a review to determine the environmental cost of the clothing they were producing.
They found that everything they made pollutes in some way. In searching for a better way they came across a company that takes old plastic pop bottles, cleans them, melts them down and extrudes them into fibers that can be spun into yarns. This process means that less plastic ends up in landfill sites.
“I left home and drove to a nearby gas station.”

Your car is a Ford Focus. The parts of your car come from at least twelve different countries. For example, the glass and the radio come from Oshawa in Canada, the cylinder head, carburetor and headlights are made in Italy, the starter, alternator and wind shield washer pump in Japan, the battery and mirrors in
Spain, and so on. You buy your gas from Shell, which is an Anglo-Dutch transnational company based in
Holland, which ships crude oil to Canada from Nigeria.
“While driving to work/school I slipped a CD of my favorite music into the CD player to make the trip more enjoyable.”
That CD was produced in Bangkok, Thailand, in a factory where most of the workers are girls as young as nine years old who are paid a monthly salary of $45-$50.
“In just a few hours of my life I have consumed raw materials from most parts of the world and used products sold by many of the world’s major transnational or multinational corporations. I have made global connections.”
List all the items that you have used & where they come from:
Items Where they came from…
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Items Where they came from
Globalization permits international companies free access to any country’s marketplace. Canada wants its companies to have open access to other countries’ marketplaces, to be able to sell to more customers. In turn, we must permit open access to our markets. Reducing trade restrictions such as import taxes (tariffs) allows for the free transfer of goods, services, and investments across national borders. Canada, the US, and Mexico already have such an agreement through the North American Free Trade Agreement (NAFTA).
At the heart of globalization is free trade throughout the world. Goods, services, and investments move freely to find the most competitive environment so that customers and investors benefit. Economists, politicians, activists and ordinary citizens disagree about whether free trade is a good thing.

Support for Free Trade
Some economists believe world free trade is positive because it will force all companies to be more competitive, which will have a beneficial impact on consumers. For example, if a car is being built in Japan more cheaply than in Canada then our local producers will have to lower their prices or customers will buy the Japanese-built car. They believe that the increased competition will have a positive effect on our economy.
Free trade supporters would also argue that for too long protectionist policies have defended inefficient, overpaid, unionized industries. They would also suggest that this system has also allowed a high tax structure and an overly large and expensive civil service. Therefore, according to them, under a more open global economy, industries must become more competitive and governments less involved in business.
Opposition to Free Trade
Other economists believe that free trade is negative. They suggest that it will result in the loss of workers’ rights and huge job losses for Canadians as we compete with cheaper markets. For instance, if a company wants to build a car factory in Canada it would have to pay Canadian workers at least the minimum wage in this country. But if it built its car factory in Mexico it would only have to pay Mexican workers about 80 cents an hour. This competition puts a great deal of pressure on businesses and governments to lower wages in Canada. As well, people supporting this point of view would argue that even though Canadian consumers pay more for imported goods due to tariffs, we are still getting a good deal because we are ensuring that jobs stay in Canada, and it ensures that our high level of public services continue.
Race to the Bottom
In order for governments to keep companies operating in their countries or to attract new ones, they may find themselves in a “race to the bottom.” Critics suggest that governments find themselves in the position of either having to lower their environmental standards or decrease workers’ rights and livingworking conditions in order to permit foreign corporations to maximize their profits. They would also argue that this is dangerous for Canadians because we have one of the best standards of living in the world, national health care, and in order to be competitive we would have to decrease that standard.
Consider the following situations:
In 1987, there was a bitter two-month strike at Ford Motor Company in Mexico. The company decided to fire 3400 workers and cut wages by 45 per cent. When the workers came to the support of their labor leaders, gunmen shot workers at random in the factory.
In 1992, again in Mexico, 14,000 workers at a Volkswagen plant turned down a contract offered by the company. In response, the company fired them all. The workers appealed to an outside court for help; the court upheld the company’s action.
Ironically, Mexico is considered to be a very “competitive” country, and international investors are rushing there to set up companies. Some might argue that in the long run, this benefits the entire continent by creating a great cash flow between all three countries. For example, even though Canadian jobs might be lost and exported to Mexico, it could be argued that improving

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the living standard of Mexicans increases their ability to buy Canadian products whether they are made in
Mexico or Canada. It could also be argued that any increased profits would simply go to the corporations that establish businesses there. It seems that the debate over the merits of globalization and free trade will continue for some time to come.
In your own words, define or describe each of the following:
GLOBALIZATION ______________________________________________
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CHALLENGES OF GLOBALIZATION
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2. _______________________________________________________________________________
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NAFTA __________________________________________________________________________
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FREE TRADE ___________________________________________________________________
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“RACE TO THE BOTTOM” ______________________________________________________
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Identify 3 pros (reasons to support free trade) and 3 cons (reasons to oppose free trade). Write your pros and cons into the spaces provided. /6 marks
Pros Cons
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