WordPress.com



International Trade and Canada – 2020You require the following readings to complete this assignment:Globalization (handout)Trade Statistics from the OEC Everything you Wanted to Know about the Canada-US Trade War but were Afraid to AskHow Canada’s Supply Management System WorksThe New Deal – CUSMADairy Farmers under CUSMANAFTA vs CUSMA (video)1) Describe what globalization means in general.2) Describe what globalization means in terms of economics.3) Outsourcing is something that has happened in many developed countries because of globalization. What is it, why has it happened, and what do critics say about it?4) List (point form) how globalization impacts or changes the:Developed WorldDeveloping WorldUse the OEC website to find the following:5) Canada is the ____________ export economy in the world and the 24th most complex economy according to the Economic Complexity Index (ECI). In 2017, Canada exported ______ and imported _______, resulting in a ____________________ __________________. In 2017 the GDP of Canada was $1.65T and its GDP per capita was $46.7k.6) What does GDP and GDP per capita measure? Describe these economic statistics.7) Check out the OEC website – there are lots of interesting stats and graphs. List five things you learned about Canada’s economy and/or trade:The following questions are from the article about the Canada/US Trade War8) What “weapon” are both countries using to fight this trade war?9) How do tariffs impact regular people like you and me?10) After reading the whole article describe why the Trump administration has started this conflict. What do they think they have to gain economically and politically from this?The following questions are from How Canada’s Supply Management System Works:In general, Canada supports free trade because most of our recent federal governments believe it leads to the greatest prosperity for our country. This does not mean that it is always what is best though. Canada also practices protectionism in some cases (in fact, this is something that really annoyed Trump during our recent trade negotiations). Some of our resources are under a system called supply management which has been very controversial in Canada over the last decade.11) What three major products are supply managed in Canada?This system, in a nutshell, is about producers sacrificing some freedom in exchange for security. Let’s use a made up product called fritzscheium to show how it works.A farmer is only allowed to produce a set amount (quota) of fritzscheium every year. This is to control supply. If farmers produced as much as they could it would lead to too much supply which, by the rules of supply and demand, would lower the price. That might be good for the consumer, but not the farmers.The fritzscheium Board of Canada sets a minimum price for the product throughout Canada to ensure that farmers get a fair reward for their work, even if world prices for fritzscheium fluctuate.A farmer must meet quality standards set by the fritzscheium Board of Canada. This way, the consumer is guaranteed a quality and safe product.The government sets huge tariffs on foreign made fritzscheium to protect it from competition and to ensure that Canadians buy locally made fritzscheium.In Canada we used to supply manage even more products, most notably all our grains. It was called the Canadian Wheat Board and it was headquartered in Winnipeg. It was recently dismantled because the issue of supply management is quite controversial. Like most of these issues there are winners and losers. 12) After reading the article and my example, complete the charts:Farmer/ProducerBenefits of SMDisadvantages of SMConsumerBenefits of SMDisadvantages of SMThere is one other issue to consider. Most of the products in the world are not supply managed. This is beneficial because it keeps the cost of commodities like milk, coffee, or fritzscheium low for the consumer. The problem for individual farmers is that it can be difficult to make a profit when you sell your product for low prices but it can often cost a lot to produce. In the developed world (rich countries) we help our farmers cope with this either through supply management (like in Canada) or the governments provide subsidies to their farmers to help them survive.13) What is a subsidy?This is linked to the concept of fair trade. Poorer countries can’t afford to offer subsidies or to supply manage products, leading to great poverty for producers in developing countries. Fair trade attempts to fix this.The following questions are from The New Deal – CUSMA / Dairy Farmers Under CUSMA14) Take the role of a trade representative from each of the following countries and briefly explain the pros and cons of the new CUSMA.Canada -USA -Mexico -15) Canada has many free trade deals globally. Here are some of the most important ones past and present. Go online and define these and list which countries are involved and when they were signed:NAFTA – CUSMA –CETA –CPTPP - 16) What is the WTO? ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download