HECOL300 Lecture Notes - Lecture 7: World Trade Organization, Free Market, Outsourcing
5 Apr 2016
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Document Summary
Free market economy as a result of policy. Equalization payments, taxed have provinces and funded have-not provinces. Health of economy determines the government"s ability to a ord to address problems. Means that heath of economy and revenue streams will be di erent across the country. Di erent provinces will have di erent capacities to deal with policy issues. Give government more choices with how they deal with policy issues. Where is the decision making power over production, investment and employment decisions. Strong us in uence on canadian policy (not just economic policy) Canada is a price taker, not price setter. Federal government may be more likely to create policies that powerful and more economically important provinces favour. Free trade agreements and zones are being created to break down barriers between goods, services and capital around the world. Wto become more powerful in the global economy; determine trade barriers. Policies to limit and restrict imports and exports.
