Advantages of International Trade Why trade To sell

Advantages of International Trade

Why trade? • To sell something we have so that we are able to buy something we need. • Trade, in turn: – Creates jobs – Attracts investment – Leads to innovation – Provides a wider choice of products and services to Canadians!

Its like trading cards…. • Say you buy a bunch of chocolate frogs (each of which comes with a collector’s card) • You end up with all the witches and wizards except for Dumbledore. You DO however, have two Mc. Gonagalls!

• A friend has all the cards as well, except Mc. Gonagal – but this friend also happens to have two Dumbledore cards. • In order for you to have all the cards you need… and for your friend to have all the cards they need…. you trade!

International Trade • Works in a similar way • Canadian farms grow more corn and soy beans than Canadians can eat. • Canada does not however, grow pineapples or bananas. • Through Trade, these a partnership will allow each country to get those things it doesn’t have.

Top Products Imported to Canada • • • Motor Vehicles Electronic parts and components Computing and peripheral equipment Aircraft and aircraft parts Construction and mining machinery

Job Creation • Exports are the goods we produce in Canada and sell to other countries. – More than 50% of everything produced in Ontario is exported. – One out of three Canadian jobs depends on exports. – (The goods we ‘trade’ are sold for $$ on the international market. )

How are jobs created? • Let’s say there are 20 people in a self-sufficient community. • 5 people grow food, 3 build houses, 2 knit wool clothing for everyone. • People from another community see the wool clothing, and make a deal with the self-sufficient community to supply them with knit wool clothing. • Now 2 more people are needed to work to make sure there is enough clothing for both communities!

Attracting Investment Foreign companies will invest money in Canada to simplify trade or reduce costs. (ie. They will set up an office that has people that speak their language. ) (…or they may build a warehouse to store up goods for large shipments – instead of importing a bit at a time) - This requires construction workers, warehouse staff, accountants, etc.

New Technologies • If a business can create a machine that works better, faster, or cheaper – then it will be more competitive – and sell greater numbers! • Thus, there is a constant drive to improve, and create new technologies.

Diverse Products and Services • A century ago, Canadian parents put oranges in their children’s stockings as a rare and expensive treat. • Fresh oranges are now a staple in grocery stores. • Foreign trade opens up the world as a market, delivering a wide range of foods, fashions, and new inventions.

Benefits to the consumer • Lower prices • Better quality • Functional and innovative designs

Are there disadvantages to International Trade? • … definitely…. (next time though. ) • What part of the following newscast deals with international trade? How and why is it significant? • http: //www. cbc. ca/thenational/watch/onde mand. html

• Complete your ‘What’s happening around the world? ’ handout. • Use sites like: – www. cnn. com – news. bbc. co. uk – http: //www. cbc. ca/news/world/